Twenty years ago, on October 23, 2001, Apple announced a new product called the iPod, amid what it called "a digital music revolution".
Key points:
Appleknew the iPod would eventually be "cannibalised" by the iPhone
Some models still fetch high prices among collectors
Analysts say the device likely doesn't have a future
At the time, MP3 players couldn't hold many songs, and while devices with hard drives could hold hundreds of songs, they were still relatively large and hard to use.
When Apple's then-CEO Steve Jobs first introduced the iPod, he claimed it would be a "quantum leap".
"This amazing little device holds a thousand songs, and it goes right in my pocket," he said.
The iPod eventually changed how millions of people listened to music (be it legally or by engaging in piracy), but Apple knew the device would be slowly cannibalised by the very product it laid the groundwork for – the iPhone.
The iPod has an undeniable legacy – and some models are still fetching high prices among collectors – but the device's future is more uncertain than ever.
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A mixed reaction
The first iPod had a hard drive with five gigabytes of storage, and cost $895 in Australia.
Analysts had mixed feelings at the time; some were concerned by the price tag, but others noted improvements over music players from other brands.
Following the iPod's announcement, CNET reported that technology analyst Tim Deal believed Apple had tried to follow in Sony's footsteps after the success of its Walkman and Discman music devices.
"Clearly Apple is following Sony's lead by integrating consumer electronics devices into its marketing strategy, but Apple lacks the richness of Sony's product offering," he reportedly said.
"And introducing new consumer products right now is risky, especially if they cannot be priced attractively."
YouTuber and former CNET reporter Brian Tong says accessibility was also an issue at the time, due to Apple's iTunes music software.
"When the iPod came out it wasn't an instant success, because it was only available to Apple Mac [computer] users," he says.
"At that time, if you didn't have a Mac, you couldn't use it … It was not a popular device until Apple opened up iTunes to PC users."
Some analysts saw the original iPod as just another MP3 player, while others praised the device's relatively small size and innovative user interface.
What many didn't foresee was the impact the iPod would have on music piracyafter it became available to more people.
'Don't steal music'
Music consumption was shifting towards digital files by the late 1990s, amid the rise of music piracy through file-sharing software such as Napster.
In 2001, the original iPod came packaged with a sticker on its screen which read:"Don't steal music."
That didn't stop many iPod owners (much like owners of any other MP3 player) from downloading pirated content and transferring it onto their devices.
"There was no main store to go to, there was no iTunes store initially, there was no Apple Music store," Tong says.
"People were basically just ripping their CDs, putting the music online and then going to different sites like Scour or Napster and just acquiring the music illegally. It was the Wild Wild West."
In 2006, former Universal Music GroupCEO Doug Morris reportedly said iPodswere "just repositories for stolen music, and they all know it. So it's time to get paid for it".
There were calls for a so-called "iPod tax"to be added to the price of MP3 players in some countries, to compensate music rights holders.
Such a levy affected people in Canada for more than a year but was eventually deemed unlawful, while some European countries still impose private copying levies on the sale of MP3 players.
"As iTunes became a store where people could buy music, it did help to decrease piracy," Tong says.
"But it took a while to change people's habits."
Despite rising piracy, Apple managed to grow its music downloads business, but the iPod's future changed dramatically when the iPhone arrived in 2007.
Sales fall soon after iPhone launch
iPod sales accounted for more than half of Apple's revenue in the first quarter of 2006, but sales of the music player started to drop shortly after the iPhone launched in June the following year.
Two years later, Apple's then-CFO Peter Oppenheimer said the company had already forecast that iPods would see a year-on-year decline.
"This is one of the original reasons we developed the iPhone and the iPod Touch," he said during an earnings call with investors.
"We expect our traditional MP3 players to decline over time as we cannibalise ourselves with the iPod Touch and the iPhone."
iPods as collectors' items
Jason Lindsey is a Seattle-based iPod collector who runs the popular YouTube channel MetalJesusRocks.
He has collected 30 different iPod models, and believes he is missing only two versions of the device.
"Each new one I find and add to the collection feels like Indiana Jones finding long-lost tech treasure," he says.
"My favourite thing about getting a used iPod is finding somebody else's music collection on it, and often discovering music I typically don't listen to.
"I bought a used iPod Nano a while back from this big scary dude in a parking lot, only to get in my car and discover it was full of every single Britney Spears, Spice Girls and Madonna album."
Old iPods are still attracting high prices with collectorsif they haven't been opened or are in mint condition.
"I was amazed to find that a working first-generation iPod often sells for hundreds of dollars … and lists for thousands of dollars if they are still new in the box," Lindsey says.
"It says a lot about nostalgia, but also just how beautifully designed that technology is still considered."
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The iPod'slegacy
Apple is believed to have sold more than 400 million iPods since 2001.
Along the way, the device helped to accelerate the mobile consumption ofmusic, video, photos and gameswhich we see today – where virtually all of the world's media is available on your phone.
Brian Tong believes the iPod's legacy is still visible in the iPhones of today.
"When Steve Jobs first announced the iPhone he said, 'It's a phone, an iPod and an internet communicator.'
"And people were like, 'What?!' Everyone freaked out.
"[The iPod] is one of the three tent-poles the iPhone was built on."
Apple's colourful iPod advertisem*nts also became iconic, and boosted the profiles of musical acts like Daft Punk, The Fratellis and The Ting Tings, as well as Australian bands Jet and Wolfmother.
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The iPod's uncertain future
At the time of publication, the only iPod Apple still sells is the latest generation of the iPod Touch, which hasn't been updated since 2019.
Some iPod diehards hopeda special edition would be released this month to coincide with the device's 20th anniversary – some even created their own concept devices – but nothing has been rumoured, and nothing official announced.
So is there a future for one of the most important products Apple ever created? Brian Tong doesn't think so.
"There is a group of enthusiasts that would love to see an iPod Classic come back, but it's not enough to move the needle," he says.
"It wouldn't make sense financially or from a product standpoint for Apple to do anything like that. It would just be silly.
"A lot of times people will hand down their phones to their kids to be internet devices and music players.
"I don't think there's a place for the music player anymore, and that's OK, because everything we have is already right there [on our phones]."
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Insights, advice, suggestions, feedback and comments from experts
Introduction
As an expert in technology and Apple products, I can provide you with detailed information about the concepts mentioned in this article. I have extensive knowledge of Apple's history, including the development and impact of the iPod. Let's dive into the key points and concepts discussed in the article.
The iPod's Introduction and Impact
Twenty years ago, on October 23, 2001, Apple announced the iPod, a revolutionary product that would change the way people listened to music. At the time, MP3 players were limited in storage capacity and usability. However, the iPod introduced a compact design and the ability to store up to a thousand songs, making it a game-changer in the digital music industry.
Key Point: The iPod was a groundbreaking device that allowed users to carry a large music library in their pockets.
Cannibalization by the iPhone
While the iPod enjoyed immense popularity, Apple foresaw that its own creation, the iPhone, would eventually cannibalize the iPod's market. The iPhone, introduced in 2007, incorporated music playback capabilities and offered a more versatile and comprehensive user experience. As a result, iPod sales started to decline, and Apple shifted its focus to the iPhone and iPod Touch.
Key Point: The iPhone's introduction led to a decline in iPod sales as Apple transitioned to more advanced devices.
Mixed Reactions and Accessibility Challenges
When the iPod was first introduced, analysts had mixed feelings. Some were concerned about its price tag, while others recognized its improvements over competing music players. Additionally, the initial accessibility of the iPod was limited to Apple Mac users, which hindered its popularity. However, once Apple opened iTunes to PC users, the iPod gained broader appeal.
Key Point: The iPod faced initial challenges due to its price and limited accessibility to Mac users, but its popularity increased when iTunes became available to PC users.
Impact on Music Piracy
The rise of digital music files and music piracy through file-sharing platforms like Napster coincided with the emergence of the iPod. While the original iPod came with a sticker that read "Don't steal music," many users still downloaded pirated content and transferred it to their devices. The lack of a centralized music store initially contributed to widespread music piracy.
Key Point: The iPod's release coincided with the rise of music piracy, as users downloaded and transferred pirated content to their devices.
Decline in Sales and iPods as Collectors' Items
Following the launch of the iPhone, iPod sales started to decline. Apple anticipated this decline and acknowledged that the iPod Touch and iPhone would cannibalize the traditional iPod market. Despite this decline, certain iPod models have become collectors' items, with some fetching high prices, especially if they are in mint condition or unopened.
Key Point: iPod sales declined after the introduction of the iPhone, but certain models have become valuable collectors' items.
Legacy and Future Outlook
The iPod's legacy is undeniable. It played a significant role in accelerating the mobile consumption of music, videos, photos, and games, setting the stage for the media-rich experiences we have on our smartphones today. The iPod's impact is still visible in the design and functionality of modern iPhones.
However, the future of the iPod as a standalone product is uncertain. Apple currently only sells the iPod Touch, which hasn't been updated since 2019. While there is a group of enthusiasts who would love to see the return of the iPod Classic, it is unlikely to happen due to the dominance of smartphones that already serve as music players and internet devices.
Key Point: The iPod's legacy is evident in today's smartphones, but the likelihood of a new iPod Classic or similar device is low due to the prevalence of multi-functional smartphones.
Conclusion
The iPod revolutionized the way we listen to music and paved the way for the mobile consumption of media. While its sales declined with the rise of the iPhone, certain iPod models have become highly sought-after collectors' items. However, the future of the iPod as a standalone product is uncertain, as smartphones now fulfill the role of music players and internet devices.
