Steve Jobs’ keynote for MACWORLD Tokyo was not without its usual controversy. The event was held yesterday in Tokyo’s Big Sight, a snazzy venue that is everything that many Westerner’s think of as being “Japanese.” It’s cool looking, and it seems “futuristic.” Too bad IDG Japan is disorganized, not computerized, and treats the press to even poorer facilities than the US shows. That’s OK, though, because they make up for it by being much more polite.
As with most MACWORLD Tokyo events, much of the keynote was a rehash of MACWORLD San Francisco. There were a few new announcements, however, including a new iPod, new iPod features, a new (and very cool) HD Cinema Display, support for Bluetooth, and… news about the iMacs. For a few review of keynote announcements, check out our blow by blow coverage.
Let’s start with the new iPods. The new unit is basically the unit I wanted when the li’l MP3 Player That Could was first introduced. It has a 10 GB drive that offers music fans the ability to cart around 2,000 songs in their pockets. That’s outstanding. There are also new software features that have been discussed at length already. I think the contact database is an interesting choice, and a handy feature. That said, I don’t much care about it, though your mileage will no doubt vary.
Then there’s the engraving feature. Apple announced you could order some custom engraving on your iPod, if you order from the Apple Store, for US$49 more. That’s way too much for me, but make no mistake about it, that feature was largely intended for the Japanese market. Judging from the reaction in the keynote audience, it will be a huge hit here. Since it is entirely optional, I call it a good move on Apple’s part that further broadens their revenue stream. Smart.
The new Cinema HD Display is also delightful. Don’t be misled into thinking that US$1500 for an extra inch is too much. This display offers a MUCH higher resolution that is worth its weight in gold to those needing it. You need to see it to understand just how nice it is. High end graphics pros and DV editors are going to eat this thing up, which is good since at US$3999 they may have to skip a few meals to pay for it. In my mind, it’s a winner.
Another new announcement from this event was support for Bluetooth. Bluetooth is a wireless connectivity that does for peripherals what AirPort does for Internet connectivity. Bluetooth has largely been a non-starter in the PC industry, with very little support coming from any of the Windows PC companies. It’s a very cool technology that offers even more hope of ridding ourselves of the cable mess on our desks. I find it very ironic that once again it is taking Apple’s adoption of a technology to bring it wide-spread acceptance. The irony is that Apple is such a niche player in the grand scheme of things (just ask Michael Dell), but that niche player is single-handedly responsible for the acceptance of USB, FireWire, and 802.11b (AirPort). I have no doubt that Bluetooth will become a similarly successful technology now that it has Apple’s support.
Mr. Jobs also gave us the news that Apple was going to have to raise the price of the new iMac G4s by US$100 due to sharply rising component prices. He offered us the ridiculous tidbit that Apple had the option of raising prices by US$100, US$150, or US$200, and Lo! (and Behold!), the company chose to raise prices by only US$100! Isn’t that fortunate?
Considering that we will never be able to see any evidence that these were actually the choices Apple was faced with, this seems like nothing more than some shameless hucksterism to make us think we were getting a deal. IMNHO, Mr. Jobs should have simply said that the company had raised prices the absolutely bare minimum necessary to maintain its gross margins. That’s me, though maybe the rubes will buy it.
I do think that Apple needs to be applauded for honoring the old prices on all orders received before yesterday. This was smart, and it was, of course, the right thing to do. Hearken back to the G4 debacle when Apple slowed the machines down by 50 MHz, kept the prices the same, and then canceled orders already placed, inviting people to order the new slower machines. Apple corrected that in a hurry, but this time the company played it correctly right out of the gate. Faced with trimming features or raising the price, Apple made a smart move by jacking up the price. If you understand how important it is for Apple to maintain its gross margins, then you will likely see the wisdom in this.
I don’t want to get too much into this next subject in this particular column, but Steve needs to be spanked for saying that Apple’s retail dealers are not getting the shaft when it comes to receiving iMac G4 shipments. This is all about reports that have been published in mainstream publications about Mac dealers accusing Apple of taking care of the Apple Stores first while they were left with MANY unfulfilled iMac orders. Mr. Jobs said that Apple has shipped 125,000 iMacs, with 10% of those orders going to retail Apple Stores. The unstated implication was that the other 90% went to independent retailers, but that simply doesn’t hold water with me. Many of those units also went to the online Apple Store, eating into that 90% significantly.
More importantly, even if that weren’t the case, 10% going to only 27 stores, while more than 400 stores shared the other 90% does not a fair situation make. Mr. Jobs’ own numbers CLEARLY show the favoritism towards Apple’s retail outlets that the company swore would not happen and about which the company’s independent dealers are in a tizzy. I have no idea who Steve thought he was fooling, but it wasn’t me, and it doesn’t seem to be the independent dealers I have talked to. I hope to have a more detailed news report on this today or tomorrow.
All in all, I actually consider this to be a successful keynote. I know that will surprise or annoy many of those reading this, especially in light of my more vocal criticisms, but that doesn’t make it any less true. Hard-core Western Macheads that follow Apple’s every move get used to the idea that MACWORLD Expos are for big announcements. Seeing a rehash of an earlier Expo keynote can make many of us tense.
The fact of the matter is that MACWORLD Tokyo is a *different* market than the US. For that market, the keynote presentations were, in fact, new because Japan’s press doesn’t keep as close an eye on US developments as the US press does. The converse is also true with the US press, as we often do not pay as much attention to MACWORLD Tokyo developments as we do to US and European events. With that in mind, this keynote was successful. I think the new announcements are significant, and the presentations were well received by the locals. The Japanese press that was seated all around us certainly thought it was good, and that works for me.