
The iPod is a portable media player designed and marketed by Apple and launched on October 23, 2001. The product line-up includes the hard drive-based iPod Classic, the touchscreen iPod Touch, the video-capable iPod Nano, and the compact iPod Shuffle. The iPhone can function as an iPod but is generally treated as a separate product. Former iPod models include the iPod Mini and the spin-off iPod Photo (since reintegrated into the main iPod Classic line). iPod Classic models store media on an internal hard drive, while all other models use flash memory to enable their smaller size (the discontinued Mini used a Microdrive miniature hard drive). As with many other digital music players, iPods can also serve as external data storage devices. Storage capacity varies by model, ranging from 2 GB for the iPod Shuffle to 160 GB for the iPod Classic.
Apple's iTunes software can be used to transfer music to the devices from computers using certain versions of Apple Macintosh and Microsoft Windows operating systems.[1] For users who choose not to use Apple's software or whose computers cannot run iTunes software, several open source alternatives to iTunes are also available.[2] iTunes and its alternatives may also transfer photos, videos, games, contact information, e-mail settings, Web bookmarks, and calendars to iPod models supporting those features.
The iPod line came from Apple's "digital hub" category,[3] when the company began creating software for the growing market of personal digital devices. Digital cameras, camcorders and organizers had well-established mainstream markets, but the company found existing digital music players "big and clunky or small and useless" with user interfaces that were "unbelievably awful,"[3] so Apple decided to develop its own. As ordered by CEO Steve Jobs, Apple's hardware engineering chief Jon Rubinstein assembled a team of engineers to design the iPod line, including hardware engineers Tony Fadell and Michael Dhuey,[4] and design engineer Jonathan Ive.[3] The product was developed in less than one year and unveiled on 23 October 2001. Jobs announced it as a Mac-compatible product with a 5 GB hard drive that put "1,000 songs in your pocket."[5]
Apple did not develop the iPod software entirely in-house, instead using PortalPlayer's reference platform based on two ARM cores. The platform had rudimentary software running on a commercial microkernel embedded operating system. PortalPlayer had previously been working on an IBM-branded MP3 player with Bluetooth headphones.[3] Apple contracted another company, Pixo, to help design and implement the user interface under the direct supervision of Steve Jobs.[3] As development progressed, Apple continued to refine the software's look and feel. Starting with the iPod Mini, the Chicago font was replaced with Espy Sans. Later iPods switched fonts again to Podium Sans—a font similar to Apple's corporate font, Myriad. iPods with color displays then adopted some Mac OS X themes like Aqua progress bars, and brushed metal meant to evoke a combination lock. In 2007, Apple modified the iPod interface again with the introduction of the sixth-generation iPod Classic and third-generation iPod Nano by changing the font to Helvetica and, in most cases, splitting the screen in half by displaying the menus on the left and album artwork, photos, or videos on the right (whichever was appropriate for the selected item).
In September 2007, during a lawsuit with patent holding company Burst.com, Apple drew attention to a patent for a similar device that was developed in 1979. Kane Kramer patented the idea of a "plastic music box" in 1979, which he called the IXI.[6] He was unable to secure funding to renew the US$ 120,000 worldwide patent, so it lapsed and Kramer never profited from his idea.[6]
Since October 2004, the iPod line has dominated digital music player sales in the United States, with over 90% of the market for hard drive-based players and over 70% of the market for all types of players.[58] During the year from January 2004 to January 2005, the high rate of sales caused its U.S. market share to increase from 31% to 65% and in July 2005, this market share was measured at 74%. In January 2007 the iPod market share reached 72.7% according to Bloomberg Online.
The release of the iPod Mini helped to ensure this success at a time when competing flash-based music players were once dominant.[citation needed] On 8 January 2004, Hewlett-Packard (HP) announced that they would sell HP-branded iPods under a license agreement from Apple. Several new retail channels were used—including Wal-Mart—and these iPods eventually made up 5% of all iPod sales. In July 2005, HP stopped selling iPods due to unfavorable terms and conditions imposed by Apple.[59]
In January 2007, Apple reported record quarterly revenue of US$7.1 billion, of which 48% was made from iPod sales.[60]
On 9 April 2007, it was announced that Apple had sold its one-hundred millionth iPod, making it the biggest selling digital music player of all time. In April 2007, Apple reported second quarter revenue of US$5.2 billion, of which 32% was made from iPod sales.[61] Apple and several industry analysts suggest that iPod users are likely to purchase other Apple products such as Mac computers.[62]
On 5 September 2007, during their "The Beat Goes On" event, Apple announced that the iPod line had surpassed 110 million units sold.[citation needed]
On 22 October 2007, Apple reported quarterly revenue of US$6.22 billion, of which 30.69% came from Apple notebook sales, 19.22% from desktop sales and 26% from iPod sales. Apple's 2007 year revenue increased to US$24.01 billion with US$3.5 billion in profits. Apple ended the fiscal year 2007 with US$15.4 billion in cash and no debt.[63]
On 22 January 2008, Apple reported the best quarter revenue and earnings in Apple's history so far. Apple posted record revenue of US$9.6 billion and record net quarterly profit of US$1.58 billion. 42% of Apple's revenue for the First fiscal quarter of 2008 came from iPod sales, followed by 21% from notebook sales and 16% from desktop sales.[64]
On 21 October 2008, Apple reported that only 14.21% of total revenue for fiscal quarter 4 of year 2008 came from iPods.[65]. At the September 9, 2009 keynote presentation at the Apple Event, Phil Schiller announced total cumulative sales of iPods exceeded 220 million.[66]
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