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New Apple Hi-Fi expected to impact accessories makers(Chicago Tribune (KRT) Via Thomson Dialog NewsEdge) CHICAGO _ Apple Computer Inc. introduced a portable sound system Tuesday intended to move the iPod from the coat pocket to a spot next to the couch. The iPod Hi-Fi system, priced at $349, includes a remote control and a dock for the mp3 player. At an event in California, Apple Chief Executive Steve Jobs called the unit a "home stereo reinvented for the iPod age." But it is more than that, especially to the numerous companies that make accessories for the iPod. Buyers of iPods spend $1 on accessories for each $3 they spend on the iPod, said Stephen Baker, an analyst with research firm NPD Group. In 2005 that amounted to $1 billion spent on everything from car adapters to clothing, Baker said. Furthermore, NPD research shows that the biggest chunk of spending _ 26.5 percent _ was for speaker systems. "If you're an iPod accessories maker, (Tuesday's) announcement has to make you nervous," said Rob Enderle, principal analyst for the Enderle Group in San Jose, Calif. "The accessories market is clearly very lucrative, and Apple will be getting more aggressive." Apple, of Cupertino, Calif., has sold about 42 million iPods since 2001. Last week, it passed the billion-song download mark at its iTunes music store. With a more aggressive footprint in the accessories business, Apple stands to profit even more from the iPod. Apple senior vice president Phil Schiller said the tech company will continue to support members of the "iPod economy," he told the Associated Press on Tuesday. He said there's enough room in the market for a range of products. Gavin Downey, director of product management for Belkin Corp., a California company that makes about 150 different iPod accessories, said he thought Apple's boom box was cool. "It won't cross over too much into what we are doing. It's a little bit north of where we play at with price points." At Niles, Ill.-based Shure Inc., which makes high-end headphones, the iPod helped boost sales significantly. Revenue rose 256 percent for its line of sound-isolating earphones from 2004 to 2005, the company said. Baker, the NPD analyst, said the new boom box ties well into other Apple media initiatives in home entertainment. Indeed, as part of Tuesday's announcement, Apple introduced a new version of the Mac Mini computer that uses an Intel chip. The unit, priced at $599, includes software to let users access music, movies or photos across a home network. In other gadget news Tuesday, mobile phone maker Sony Ericsson announced a 3.2-megapixel camera phone. The K790 Cyber-shot phone, available in the second half of 2006, will have the highest level of image capture for a phone currently available in the United States. Most new camera phones rarely exceed 1.3 megapixels and only a handful offer 2 megapixels. "It looks like a very nice phone," Enderle said. "My first good digital camera had 3 megapixels. That is probably the ideal resolution for the everyday photographer." Sony Ericsson could use a boost in the United States. The company has seen its market share shrink in recent years. It has fallen from around 7 percent in 2001 to 2 percent in 2005, said Neil Mawston, a wireless industry analyst with Strategy Analytics. He called their current phone portfolio "weak." The K790 includes a flash, red-eye reduction and a new application Sony calls "BestPic." That feature allows users to press the shutter once and the camera snaps 9 images in sequence, allowing the user to choose the best of the bunch. Sony Ericsson did not announce which U.S. carrier will sell the phone. It will have a retail price of $599. Sony Ericsson also announced a new Walkman phone, the W300, the seventh version of the company's line of music-playing phones. "Sony Ericsson is really going after the multimedia opportunity on the cell phone side," Enderle said. "If anything has a chance to replace the iPod, it's the cell phone. And Sony is on the right track." ___ (Staff reporter Mike Hughlett contributed to this story.) ___ (c) 2006, Chicago Tribune. Visit the Chicago Tribune on the Internet at http://www.chicagotribune.com/ Distributed by Knight Ridder/Tribune Information Services. _____ PHOTO (from KRT Photo Service, 202-383-6099): CPT-APPLE For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail [email protected]. |