Featured Article: ForeSee Survey: Apple, Newegg and H-P Lead in Online Satisfaction
TMO Reports - Merrill Analyst Still Expects Flash-Based iPod in Early 2005
by , 2:00 PM EST, November 29th, 2004
Merrill Lynch analyst Steven Milunovich reiterated Monday that he still expects Apple Computer to unveil a flash memory-based iPod in the first quarter of 2005.
In a research note obtained by The Mac Observer, Mr. Milunovich wrote that he believed the new device will be priced between US$149 and $199 and that it could possibly be announced at Macworld Expo San Francisco beginning January 10. He made the same prediction back on October 25 in a commentary first reported by TMO.
Mr. Milunovich wrote that the MP3 flash market is five times the size of the hard disk drive-based player market in units and about two times in revenue. It is also fragmented with the leader, Samsung, at only an 8 percent share. The flash MP3 market is expected to be $2.6 billion in 2004, slightly larger than the HDD player market at $2.3 billion. Combined, the music player market could be $8.1 billion by 2006.
"This is a market Apple should want to participate in because it will pull new customers into the iPod/iTunes 'ecosystem,' he wrote. "We believe consumers will hesitate to switch once they become accustomed to the iPod's scrollwheel or have purchased a number of iTunes (which only work on iPods). The land grab is on."
It should be noted that Mr. Milunovich was also the same analyst who predicted the iPod photo would not debut until sometime next year. Instead, it was announced within a week of his original prediction on October 25.
Observer Comments
Mon Nov 29, 2004 5:11 pm Subject: It will never happen
QuoteThought hdd is 70% and flash is 30%. In any case, from business perspective, it is necessary for Apple to compete in the low cost 30% of the market. Other than for the money, it will impede the growth of other formats esp WMA.Mr. Milunovich wrote that the MP3 flash market is five times the size of the hard disk drive-based player market in units and about two times in revenue.
Even though is flash based, it should still be called an iPod mini.
By the way, SJ did not say he will not offer a flash based iPod. He merely joked that competitors' flash based players are stored in the cupboard and not use.
Mon Nov 29, 2004 5:16 pm Subject: Jimothy still thinks analysts are blindly guessing
Mon Nov 29, 2004 5:22 pm Subject: Re: It will never happen
Quotetechnoguy100 wrote:
Steve Jobs said Apple would never offer a flash-based iPod, and he's one stubborn guy, so I doubt the rumors are correct.
Steve says a lot of things that don't end up being true. Plus, I do think that stuff was more joke than fact. So yeah, a flash-player is possible.
Of course, I also agree with the post that says the analysts don't really know anything either.
So in other words, I have no idea, but it's certainly possible either way.
QuoteCould you find a specific quote? Steve tends to make statements like "Apple has no plans to introduce a flash based iPod in the forseeable future." as opposed to "The Earth will be absorbed by the Sun before Apple offers a flash based iPod." Or we could take the example of the iPod photo. Steve always said it was just about the music, but now we have this new iPod that does photos. I think the "iPod Micro" makes sense given the market and Apple's position and I expect to see this as one of the many exciting announcements in Janurary.technoguy100 wrote:
Steve Jobs said Apple would never offer a flash-based iPod, and he's one stubborn guy, so I doubt the rumors are correct.
Mon Nov 29, 2004 5:47 pm Subject: Steve meant Flash not flash
Tue Nov 30, 2004 5:45 am Subject: Hell has frozen over before.
Well, we all know that hell has frozen over before for Steve Jobs so a flash based player is definately a possibility. Steve has been known to talk about the problems or difficulties with a given situation or technology and then present a new product as the solution to those problems. Whatever Apple comes up with as a flash based player, expect it to be innovative and an "out of the box" solution.
Apple is already making tons of $$$ on the iPod as it stands. At this point they need to fight for dominance in the format wars. I don't think anyone will argue that a $149 flash based iPod would sell like hotcakes and throw the fragmented flash player market into shambles. Apple can use such a player to lock WAY more people into iTunes (and away from WMP).
QuoteTotally agreed. Once Apple dominated the music format, they can parlay this dominance into dominance of video/movie format.Biff wrote:
Apple is already making tons of $$$ on the iPod as it stands. At this point they need to fight for dominance in the format wars. I don't think anyone will argue that a $149 flash based iPod would sell like hotcakes and throw the fragmented flash player market into shambles. Apple can use such a player to lock WAY more people into iTunes (and away from WMP).
A flash-based iPod is also a better platform for adding features like WIFI, BlueTooth, phone functionalities, radio, ... because of power requirements, size, weight, heat and cost considerations.
Recent Headlines - Updated Friday, May 16th, 2008
- Fri., 8:00 PM
- iPodObserver - Dr, Danger, Brickfilms, Narnia and More
- 5:10 PM
- StrangeCharm - Explosions and Debris (Week of May 12)
- 4:15 PM
- TMO's DealsOnTheWeb.com - 8GB iPod Touch: $229 Delivered
- 3:35 PM
- Safari Suffers from "Carpet Bomb" Issue
- 2:55 PM
- iPodObserver - Barack Obama's Smartphone of Choice
- 2:35 PM
- Parallels Releases Update for Vista SP1 and XP SP3
- 1:00 PM
- iPodObserver - AT&T: Back to Three iPhone Limit Per Customer
- 12:55 PM
- Mac Gaming News - Macgamestore Intros Agatha Christie: Peril at End House
- 10:35 AM
- Hot Forum Topic - The iPhone's Growing Global Reach
- 10:05 AM
- Unparsed - I found Those Missing iPhones!
- 9:45 AM
- Fone2Phone 2.01 Improves Performance, Cell Phone Support
- 9:20 AM
- Apple Scores 2 Black Pencils at D&AD Awards
- 8:40 AM
- Yahoo to Icahn: Get a Clue
- 8:05 AM
- iPodObserver - Orange Gets Europe, Middle East, Africa iPhone Deal
- 7:30 AM
- TMO Quick Tip - Quick Look: Web Archives
The Mac Observer Reader Specials
- Download Typestyler, still the Ultimate Styling Tool for Internet, Print and Video Graphics. Works great in Classic with a Native OS X Version on the way. Free Tryout: www.typestyler.com
- Other World Computing: Performance SATA Drives up to 1.0TB from $54.99 Replace, Upgrade, Add SATA to Mac Pro, PowerMac G5, iMac G5 & even PowerMac G4(with PCI SATA Card) Specials: 400GB from $99; 500GB 7200RPM from $99; 750GB & 1.0TB In Stock now!
Memory For New Intel Core2 DUO MacBooks, MacBook Pro, MacMini & iMacs" 4GB Kit $80, 3GB Kit $60, 2GB Kit $40, 1GB $20. Click to Maximize your Macs...
Mac observers can now play Party Poker for Mac as well as Mac casino games by going to MacPokerOnline.com.For the latest Apple products use Ciao a comparison website to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate cell phones.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.

