Analyst: iTunes Motorola Phone Demo a MacExpo Possibility; Ship by July
First on TMO - Analyst: iTunes Motorola Phone Demo a MacExpo Possibility; Ship by July
by , 10:35 AM EST, December 23rd, 2004
Apple Computer and Motorola are ready to demo a yet-to-be released new cellular phone with an iTunes software client built in that could be in the hands of consumers by July 2005, American Technology Research analyst Shaw Wu told clients in a commentary released Thursday.
"We believe that Apple and Motorola are ready to demo a yet-to-be released new cell phone with iTunes software client," Mr. Wu wrote in his report, obtained by The Mac Observer. "we believe Steve Jobs may give an update on its progress during his keynote speech at the MacWorld Expo on January 11, 2005."
Mr. Wu said he believed the joint product was "on track to be ready for consumers in the first half of 2005," would have both USB and Bluetooth connectivity to transfer music files, offer 12 to 24 song capacity, but offer no direct access to the iTunes music store.
"Like an iPod, we believe one still needs access to an iTunes on a PC client (Mac or Windows) to transfer files to the cell phone," he wrote.
The west coast analyst said he considered the venture a "win-win" for both companies.
"For Apple, this deal expands its iTunes footprint beyond PCs (Mac and Windows) and iPods into the cell phone space with Motorola one of the top cell phone manufacturers in the world. We also believe this gives Apple further differentiation versus its competitors in the digital music space and gives more users the iTunes/Mac "look and feel" experience and could help accelerate AAPL's sales."
Mr. Wu reiterated Apple shares as a 'buy' with a $78 price target. "We believe that the move to digital music is a multi-year trend that Apple is well-positioned to capitalize on, having arguably the industry's most powerful and complete stack of hardware, software, and service."
Eddy Cue, Apple's vice president of applications, told Forbes magazine Dec. 16 a joint venture with Motorola was "on schedule" for a 2005 debut, but gave no further details. Both companies announced a joint venture to develop products in July.
Observer Comments
Thu Dec 23, 2004 12:57 pm Subject: Will it have a scroll wheel?
A scroll wheel and a few buttons is probably all that is needed for an alternative to the usual keypad (Nokia already has a scroll wheel phone). If it works it could be the precurser to another interface paradigm, everyone would then know how to write, type and scroll.
Long shot, but possible.
Anyways I see Apple doing more than iTunes on the phone, more like Moto subcontracting product design to Apple.
Thu Dec 23, 2004 1:32 pm Subject: 12 To 24 Song Capacity - Wow What Great R&D
I wish to stick my phone in the same dock as iPod has or just in iPod to transfer favorite songs and photos and charge mobile phone, also would love to sync iPod address book with my phone and computer. Could I wish one more thing? I want it to be an Apple design mobile. 
not some junk like E398 even if it will have an iTunes on it, I wont buy it because I have more advanced SE P900 256Mb with ogg player on it.
Just had a peak in the London Apple store. Masses of rather impressive looking and very selective 'lemings' in there queing to get the products of the Apple R&D department. But hey RC you keep your hopes there are still enough lame brains to keep [buttheads] like you in business, for now. LOL.
[ -x]
Having 12 to 24 songs on a phone doesn't make much sense IMHO. This also in light of the rumored Flash-based iPod that's supposed to appear early in 2005 which will (hpoefully!) sport a much bigge capacity.
What's attractive to phone operators? Selling SERVICES, not boxes. That's where the money comes from. So combine the iTunes music store, the AACplus coding that delivers high quality at 48kbps, and voilа: You have an attractive subscription model: Stream the iTunes tracks that you have already bought through your cell phone!
1. Operator happy because he cashes in on dial-up time
2. Motorola happy because sells phones to operators
3. Apple happy because more compelling reasons to buy from iTMS
Think about it!
financegozu@yahoo.com
Mon Dec 27, 2004 12:14 pm Subject: Apple, Motorola, and Bluetooth
Maybe Apple can finally get Motorola to get Bluetooth to work on their phones (re: iSync, etc). From Apple's website-
http://www.apple.com/isync/devices.html
iSync Device and Function Compatibility
Motorola(4,5) (USB cable only)
4 Mac OS X v10.3.5 is recommended for Symbian OS and Motorola phones.
5 Motorola phones require USB cable. Bluetooth not supported.
Oh and I had an Samsung Uproar what 3-4 years ago that had 64 Mb of space for MP3 storage in a small flip phone. Hopefully their not just doubling the storage space but adding some wow features too.
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