Digital Daily » Phil Schiller

Apple to Sony, Nintendo: Game Over, Man

John Paczkowski — Tue, 29 Sep 2009 17:47:56 +0000

“Don’t let the haters tell you [the iPhone] sucks compared to the [Nintendo] DS or the [Sony] PSP. It doesn’t. It’s good. It’s clear that the quality of iPhone games is eclipsing its console counterparts, and that’s even more acute when you compare it against the prior generation.”

That’s what ngmoco co-founder and Electronic Arts (ERTS) alum Neil Young said of Apple’s iconic handset at the Game Developers Conference in San Francisco earlier this year, and it’s worth reflecting on a bit in light of a new report from Bernstein Research analyst Toni Sacconaghi that claims the iPhone OS will soon create pricing and customer migration pressure for traditional gaming platforms.

Noting that some 665-760 million games may have been downloaded from the Apple (AAPL) App Store during the last 12 months, Sacconaghi estimates that the installed base for the iPhone and iPod touch platform could amount to about one third of the total handheld gaming installed base by 2012.

“We believe that gaming embodies the power of Apple’s App store: it has dramatically lowered the entry barriers for both developers and gamers alike, resulting in an unparalleled number of available games at affordable prices, which is creating lock-in and enhanced interest in Apple’s high-margin iPhone (and iPod Touch) platforms,” Sacconaghi writes.

Continuing, the analyst adds: “By most measures, gaming has been the killer App Store category, accounting for an estimated 40% of all downloads. Most importantly, we believe that gaming is providing yet another incremental, differentiated reason for consumers to purchase iPhones and iPod Touches, and creates powerful lock-in to the App Store platform and Apple products on a go forward basis.”

The upshot of all this is bad news for traditional gaming console developers–particularly those who have dismissed it as a novelty. “Most gaming developers today view the iPhone and other smart phones as an incremental opportunity, which targets the casual gamer but not the dedicating gaming enthusiast,” Sacconaghi explains. “Over time, however, we believe that the combination of evolutionary improvements in iPhone/iPod gaming functionality, the convenience of the App Store download model, the App’s Store leading title selection and lower price points could cause some migration among gaming enthusiasts to the Apple platform and/or pressure traditional gaming incumbents’ hardware and software pricing.”

And this is clearly what Apple (AAPL) is aiming for. Consider these recent remarks from Phil Schiller, the company’s senior vice president of worldwide product marketing: “People are starting to see what a great gaming device this is. When you think about the companies that came before us…when you played those other systems, they seemed so cool, but now when you look at them, they don’t stack up against the iPod touch….No Multi-Touch user experience, Games are expensive, No App Store, No iPod, Expensive Games ($25-$40) and uncomfortable retail buying experience. [There are] 607 games for PSP and 3,680 games for Nintendo DS. [But there are ] 21,178 Game and Entertainment Titles at App Store.”

Google to Apple: You Lie

John Paczkowski — Fri, 18 Sep 2009 16:47:05 +0000

Well this is uncomfortable…

Asked by the Federal Communications Commission in August if it had rejected Google’s Voice app from its iTunes App Store, Apple (AAPL) claimed it had not and that the app was still under review.

“Contrary to published reports, Apple has not rejected the Google Voice application, and continues to study it,” Apple explained to the FCC. “The application has not been approved because, as submitted for review, it appears to alter the iPhone’s distinctive user experience by replacing the iPhone’s core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voicemail.”

The FCC put the same question to Google (GOOG) and received a very different answer, which was revealed this morning when Google allowed an unredacted version of the document it submitted to the commission to be made public. Here’s how Google responded to the FCC’s question:

Apple’s representative informed Google that the Google Voice application was rejected because Apple believed the application duplicated the core dialer functionality of the iPhone. The Apple representative indicated that the company did not want applications that could potentially replace such functionality.

… In a series of in-person meetings, phone calls and emails between July 5 and July 28, 2009, Apple and Google representative discussed the approval status of the Google Voice application that was submitted on June 2, 2009. The primary points of contact between the two companies were Alan Eustace, Google Senior Vice President of Engineering and Research and Phil Schiller, Apple Senior Vice President of Worldwide Product Marketing. On July 7, Mr. Eustace and Mr. Schiller spoke over the phone. It was during this call that Mr. Schiller informed Mr. Eustace that Apple was rejecting the Google Voice application for the reasons described above.

Ah, I see. So by “delayed,” Apple apparently meant “rejected.” Interesting. The full document, below.

UPDATE: As I report in a later post on this unfolding story, Apple has denied Google’s assertion to the FCC that it rejected the Google Voice app.

9182009_Google_Filing_iPhone –

Live from Apple's "Let's Rock" Event: iPod Updates, Games, Nano Video Cameras

John Paczkowski — Wed, 09 Sep 2009 17:33:38 +0000

Apple has sold some 225 million iPods to date, making it one of the most popular electronic devices ever. And it’s sure to sell even more after the updates the company announced at this morning’s event. Among them: Larger, cheaper iPod touches and nanos with cameras and FM radios.

Following introductory remarks by Apple (AAPL) CEO Steve Jobs, Phil Schiller offers details, noting that “the iPod has 73.8 percent market share. The next biggest category is ‘other,’ and after that, SanDisk and then Microsoft pulling up the rear.”

Schiller adds that Apple has sold 20 million iPod touches since the device debuted. He runs through a lengthy sales pitch for the iPod touch, touting it as a killer pocket computer and taking potshots at rivals like Dell (DELL) along the way.

Moving on to games, Schiller notes the discrepancy between the number of games on gaming platforms like the Nintendo DS and the iPod touch. The iPhone OS, he notes, has 21,178 games. The DS has just 3,680. Point taken.

Moving on to some new game demos now. First up: Ubisoft with Assassin’s Creed 2, which, we are told, is “all about visceral combat, brutal hand-to-hand combat and one-shot kills.” Behind the presenter, a warrior is mercilessly beaten into submission.

Schiller returns to the stage, “Boy, that looks like fun.”

Tapulous, the developer of Tap Tap Revenge, and Gameloft, follow, both introducing new games. Gameloft’s Nova–a first-person shooter with multiplayer option–seems a far more compelling effort than Tapulous’s Riddim Ribbon, which appears to be a Black Eyed Peas-heavy variation of Tap-Tap.

Up next, Electronic Arts, which is apparently headlining the games section of today’s event. EA’s Travis Boatman takes the stage to introduce Madden NFL 10. The game boasts both custom-kick and draw-a-play-on-screen features developed specifically for the iPhone OS. Madden NFL 10 is available today.

Schiller again returns to the stage. “The iPod touch is the most affordable gateway to the App Store,” he says, adding that $199 is a “magic price point” in the iPod market.

With that, he announces the iPod touch price cuts we heard about earlier this morning: An 8GB model for $199, 32GB for $299, and 64GB for $399. All three devices are significantly faster, says Schiller. Interestingly, none seem to feature that rumored camera.

Price drops as well for the nano, but we knew about these. Apple has dropped the price of the iPod shuffle as well: $59 and $79. And the company is offering them in a new selection of colors. Plus, there’s a special edition of the shuffle crafted from stainless steel.

Steve Jobs returns to the stage. So those are the iPods, but there is one more thing: A video camera. He talks about the exploding video market, mentions the Flip, etc. “We want to get in on this market as well and we’re doing it for free….Boy, this really is the new Apple,” he quips.

Yes, the iPod nano does indeed now feature a video camera. The video quality looks impressive. Whoa: Apple has also added FM radio, a voice recorder and a pedometer to the nano. New polished anodized aluminum colors. 8GB model for $149, 16GB model for $179.

After a few concluding remarks about the new iPod lineup, Jobs announces what has become an annual tradition at these events: A live performance. Today’s artist: Norah Jones.

The end of her set concludes today’s event. No iPlatform. No Beatles on iTunes. But lots of product refreshes, software intros, and price cuts. Plus: Steve Jobs is definitely back.

Live from Apple’s “Let’s Rock” Event

iPod Updates, Games, Nano Video Cameras

iTunes 9, iTunes LP, Home Sharing, Genius Mixes

Steve Jobs: “I’m Vertical, Back at Apple and Loving Every Day of It”

Event Photos by Adam Tow

Jobs: "I'm Vertical, Back at Apple and Loving Every Day of It"

John Paczkowski — Wed, 09 Sep 2009 16:52:33 +0000

Leave it to Steve Jobs to upstage his own products.

Rumored by some analysts to be a nonevent, Apple’s invitation-only music gathering today is already proving quite eventful. Audience members expecting Apple (AAPL) exec Phil Schiller to quarterback today’s proceedings were given a welcome surprise when CEO Steve Jobs took the stage in his first public appearance since his liver transplant surgery.

He was given a standing ovation.

So how does he look? Obviously, he’s still quite thin, but from where I sit–which is admittedly near the back of the hall–he appears healthy…but gaunt. And that Willy Wonka charisma of his is back in full force. Certainly, he looks reasonably good for someone who just underwent a liver transplant. And how long does it take to regain 60 pounds anyway? Job’s isn’t De Niro in Raging Bull….

[ See post to watch video ]

Anyway, it’s great to see Jobs onstage again. He speaks quietly and it’s hard to tell if his voice is scratchy or if he’s just humbled by what he’s about to say: “As some of you know, five months ago I had a liver transplant. I now have the liver of a mid-20s person who died in a car crash and was generous enough to donate their organs. I wouldn’t be here without such generosity, so I hope all of us can be as generous and elect to be organ donors. ..I’d like to take this moment to thank everyone in the Apple community for their support. Thanks as well to Tim Cook and everyone at Apple. They really ran the company very ably during that time. … So I’m vertical, back at Apple and loving every day of it….”

Jobs quickly moves on to the announcements of the day. First up: iPhone 3.1, which now offers a Bluetooth Voice control and Genius feature and supports ringtones sold via the iTunes Store for $1.29. 3.1 is available today as a free download.

Live from Apple’s “Let’s Rock” Event

iPod Updates, Games, Nano Video Cameras

iTunes 9, iTunes LP, Home Sharing, Genius Mixes

Steve Jobs: “I’m Vertical, Back at Apple and Loving Every Day of It”

Event Photos by Adam Tow

Apple: 1 Million 3GS Handsets Sold

John Paczkowski — Mon, 22 Jun 2009 20:44:46 +0000

[ See post to watch video ]

The S Is for "Sales," Not "Speed"…

John Paczkowski — Mon, 22 Jun 2009 12:41:46 +0000

Looks like Piper Jaffray analyst Gene Munster’s second estimate of Apple’s weekend iPhone sales underestimated demand just as badly as his first. Apple didn’t sell 500,000 units of its new iPhone 3GS over the weekend, as Munster first predicted. Nor did the company sell 750,000 units as he said in a research note this morning. It sold over one million. Moreover, downloads of Apple’s new iPhone 3.0 software, launched last Wednesday, have already reached six million.

“Customers are voting and the iPhone is winning,” Apple CEO Steve Jobs said a press release today. “With over 50,000 applications available from Apple’s revolutionary App Store, iPhone momentum is stronger than ever.”

An impressive showing. Particularly considering all the factors that could slow sales: The souring economy, competition from the Palm (PALM) Pre, the BlackBerry Storm, the T-Mobile G1 and, of course, the iPhone itself. After all, there is now a $99 iPhone on the market. Beyond this, there’s the fact that the 3GS was launched in eight countries. The 3G debuted in 21.

Interestingly, this is the first time we’ve seen Jobs quoted in an Apple release in some time now. As best I can tell, the last quote attributed to him was in a Jan. 21, 2009, earnings release. Since then, Apple (AAPL) has issued 22 more press releases. This is the first in which it is Jobs, and not COO Tim Cook or Phil Schiller, Apple’s senior vice president of Worldwide Product Marketing, who is quoted. Does this mean he’s officially back at work following his medical leave? I’ve put that question to Apple and will update if I hear back.

[Image credit: Gizmodo]

WWDC 2009 Keynote LIVE: iPhone 3Gs

John Paczkowski — Mon, 08 Jun 2009 19:13:56 +0000

Schiller announces iPhone 3Gs. S is for speed. “This is a really fast iPhone.” Loads apps and Web sites very, very quickly. NYTimes.com loads more than 3x as fast. Schiller says its about 2x faster than the iPhone 3G. As expected, the device features a brand new 3 megapixel autofocus camera. Auto-focus. Auto-white balance. Auto-exposure. Tap-to-focus. Improved low-light sensitivity. Auto-macro. “The best thing about this camera is it also captures video.” 30 FPS VGA with audio. Auto-focus, etc. Quick demo of video shows that quality is impressive. Videos are stored alongside pix in the picture application. Edit and share videos with the tap of a finger. “And if my carrier supports it, I can even send these things via MMS,” Schiller quips in a poke at AT&T.

Also new in the 3Gs: Voice Control. Features a brand new UI that displays the commands you can use. Some examples: “Call John.” “Call 414.555.5555.” “Play Songs by The Who.” “Play more songs like this” (using Genius feature). Also on-board in the new device, a built-in digital compass that’s capable of orienting to the direction a user is heading.

Schiller rattling off new features. Improved security. Improved accessibility features. Improved battery life. 5 hours 3G talk time. 30 hours audio. “This is the fastest, most powerful iPhone yet,” says Schiller. Price? $199 for 16GB. $299 for 32GB. Both available in black and white. Apple (AAPL) will keep the current 8GB 3G on the market at $99. Lots of applause. That $99 3G is available TODAY. When will the 3Gs arrive at market? June 19 for initial launch and then a fast and massive roll-out to 80 countries.

Lights dim to view a new iPhone ad. Big selling point is clearly video. Schiller returns to the stage for the warp-up. Will there be a “one more thing?” Doesn’t look like it. Now thanking all the Apple teams involved in these new products. And … that’s all she wrote.

Check out our WWDC 2009 Full-Coverage special feature for more WWDC news.

WWDC 2009 Keynote LIVE: Snow Leopard

John Paczkowski — Mon, 08 Jun 2009 17:40:04 +0000

Apple (AAPL) is also updating the MacBook air. Two new configurations starting at 1.8 GHZ. “Great hardware deservers great software,” says Schiller. And with that he welcomes Bertrand Serlet to the stage to talk about OS X. Serlet immediately begins talking smack about Vista and Windows 7. “No end user should ever have to know about disc defragmentation,” he quips. Windows 7 is “fundamentally another version of Vista. “It’s the same old technology. …this is so very different from OS X.” Snow Leopard will feature a number of refinements. 90 percent of the OS has been tweaked, says Serlet. The Finder has been tweaked — not the UI, just the code beneath it. Expose has been built into the Dock. Installation is now 45 percent faster and, once you install it, you actually recover 6 GB of disk space. Snow Leopard’s preview performance has also been enhanced.

Slick. The trackpad now feature Chinese character support. Users simply draw the characters with their fingers.

Check out our WWDC 2009 Full-Coverage special feature for more WWDC news.

WWDC 2009 Keynote LIVE: Welcome to WWDC '09

John Paczkowski — Mon, 08 Jun 2009 17:21:08 +0000

10:01, and lights dim to reveal a movie screen. Onscreen: John Hodgman, as PC, welcoming attendees to WWDC and encouraging developers to slow down iPhone App development. An increasingly frustrated Hodgman finally fires off a raspberry. Replaced by Mac guy, who welcomes everyone to WWDC. Phil Schiller takes the stage now. “Can’t you feel the love in this room?” 25 million active OS X users in the past two years, he says, talking up Leopard. Installed base has tripled in the past two years.

These are the best MacBooks we’ve ever made, says Schiller, noting the machine’s new unibody design. Schiller announces new version of the 15-inch MacBook Pro. Like its 17-inch counterpart, the 15-inch features Apple’s (AAPL) new lithium-polymer battery. “Nicest display we’ve ever put in a notebook,” says Schiller. The machine also features a built-in SD slot geared towards photographers. It’s also the fastest notebook Apple has ever made. 3.06 GHZ. Nice. So happy I bought my new machine two months ago. Onward. Up to 500 GB hard drive. Starts at $1699. Apple is updating the new 17-inch and 13-inch MacBook Pro as well. Similar configurations. Both devices feature that same SD slot. Built-in backlit keyboard. 13 is tricked out with a new Firewire 800 port. 13-inch MacBook Pro starts at $1199. All three machines ship today. “This is the most affordable line-up we’ve ever had,” says Schiller.

Check out our WWDC 2009 Full-Coverage special feature for more WWDC news.

No iPhone at WWDC? Really?

John Paczkowski — Wed, 13 May 2009 23:33:23 +0000

This morning we learned that Apple’s Worldwide Developers Conference does not herald the return of CEO Steve Jobs. Now comes word that it may not herald the announcement of the company’s next-generation iPhone either. In a note to clients today, Piper Jaffray analyst Gene Munster said that when Phil Schiller and friends deliver the keynote address at WWDC next month they will discuss software only–iPhone 3.0 and Mac OS X Snow Leopard. Apple (AAPL), says Munster, will save the next-generation iPhone for a later event scheduled after Jobs returns to the company.

“…We believe Apple will focus on the new version of Mac OS X, Snow Leopard at WWDC,” Munster writes. “While some investors may be expecting Apple to launch redesigned iPhones at WWDC, we do not anticipate the launch in early June. Rather, we expect Apple to host a special event in late June or early July to launch a family of iPhones. We continue to expect multiple models, possibly a high-end iPhone with improved specs from the current version and a low-end version with lower capacity and fewer features along with a reduced pricing plan. Such a model could also be used in Apple’s launch of the iPhone into China as soon as the end of summer ’09.”

Munster’s is an … ahem … interesting theory. But remember, now that it has withdrawn from Macworld, WWDC is Apple’s biggest event of the year. Surely it wouldn’t pass up the opportunity to debut the latest iPhone there–especially when Palm (PALM) is expected to announce its new Pre handset on June 5, just three days before the WWDC keynote. And if the latest update of the device is as modest as some reports claim, there’s no need for Jobs to be on hand to announce it. It’s not a milestone product, and Schiller could easily handle it. Then the company could plan the late June/early July event to which Munster refers around that media tablet Apple’s rumored to be developing–with Jobs presiding, of course.

UPDATE: Over at Daring Fireball, John Gruber notes that if the next generation iPhone includes updated hardware, Apple will almost certainly announce it at WWDC. Why? Says Gruber, “…If there are any new hardware features — like say a video camera or magnetometer — that means new APIs, and if Apple wants to have WWDC sessions for the new hardware-specific APIs, they have to announce the hardware first.”

A Post-Macworld Apple Event? History Would Seem to Suggest So

John Paczkowski — Mon, 12 Jan 2009 16:28:32 +0000

Macworld 2009 is over, but the rumors that prefaced it and were then left unaddressed, remain. Two in particular: an updated iMac and a redesigned Mac mini–both of which failed to make an appearance during Phil Schiller’s Macworld keynote, though it was widely believed they would. After all, both are long overdue for a refresh. And there’s some evidence that Apple has been planning one.

The refresh may happen yet, however. Apple (AAPL) has on many occasions uncrated new products on the heels of Macworld. In February of 2008, the company announced new iPhone & iPod touch models. In February of 2006 it debuted the Intel Mac mini and iPod Hi-Fi. In January 2005 it uncrated new PowerBooks and a month later, it announced a new iPod mini and an update to iPod photo.

Clearly there’s quite a precedent for post-Macworld announcements, and in all likelihood this year will see a few as well. Certainly, an Apple desktop event later this month or in early February would be an elegant way for the company to dovetail the official release of iLife ’09 with some new desktop hardware, celebrate the 25th anniversary of the Macintosh and prove once and for all that it doesn’t need Macworld to publicize new product releases.

Weekend Update 1.11.09

Beth Callaghan — Sun, 11 Jan 2009 19:00:23 +0000

There’s got to be a joke somewhere in the fact that Macworld, the Consumer Electronics Show and the AVN Awards (the “Pornies”) all happen during the same week. Maybe even one that hasn’t been played out 10 times over. All Things Digital was too busy covering two out of three this week to think of one.

Digital Daily was on hand at Macworld ’09 Monday. Despite the flurry of wonky reporting about the health and/or “imminent death” of Steve Jobs–put into perspective here by BoomTown–nothing too remarkable happened during Apple’s (AAPL) final appearance at the annual event. Phil Schiller did a solid job delivering the keynote in Jobs’s place, introducing a new 17-inch MacBook Pro with an eight-hour internal battery and some innovative updates to iWork and iLife. Schiller ended his keynote with the announcement of changes in pricing and digital rights management for iTunes, punctuated by the surprise appearance of crooner Tony Bennett. Apparently, as Bennett sang, the best is yet to come. Crack photojournalist Adam Tow was on hand to capture the keynote in its entirety–All Things Digital’s photo coverage can be found here.

MediaMemo reported from CES about the pervasive 3-D theme of the conference and wondered whether people would pay cash to see a football game in 3-D at a theater instead of just staying home. There was the ongoing litany of the casualties of the econalypse: “Semantic” ad network Peer39 shut down its ad operation this week, Hearst is about to pull the plug on the Seattle Post-Intelligencer, Forbes announced layoffs and Sir Howard Stringer announced the elimination of thousands of jobs at Sony (SNE). MediaMemo also caught the much anticipated introduction of Palm’s (PALM) new smartphone, the Palm Pre, and its new Web OS, a combo Palm deems superior to the iPhone and that many others consider Palm’s last chance for survival. The product’s success or failure will have a lot to do with its pricing, about which there’s much disbelief.

BoomTown had the lowdown this week on an amusing rumor about a Microsoft-backed (MSFT) run at Yahoo (YHOO), the emergence of Carol Bartz as the top prospect for Yahoo CEO and Microsoft’s deal with Verizon (VZ) and Dell (DELL) to distribute search. Jerry Yang submitted to the all-seeing eye of BoomTown’s Flip camera along with Yahoo President Sue Decker to talk about Yahoo’s new product, Connected TV. The camera also caught some chatty attendees and a few demos, including one of a new Disney (DIS) music product given by a guy who looked like a member of ZZ Top.

Speaking of ZZ Top, catch gadget godfather Walt Mossberg trying out some 3-D glasses on his annual odyssey around the convention floor. All he needs is a longer beard and a ‘32 Ford and he could be a band member, too. Walt and colleague Katie Boehret caught many of the more interesting gadgets on video, and Walt previewed some more for FOX News.

More next week.

QOTD: Worst Macworld Ever?

John Paczkowski — Thu, 08 Jan 2009 16:03:22 +0000

Was it a great keynote? Well, no. Phil Schiller actually did a great job delivering it. Has anyone watched CEOs from other companies? They’d be lucky to have their keynotes delivered by Schiller, let alone Jobs. Apple followers are spoiled.”

— The Macalope puts “the worst Macworld ever” in perspective

Macworld '09: Behind the PhilNote

John Paczkowski — Wed, 07 Jan 2009 19:00:19 +0000

[ See post to watch video ]

Apple's Last Macworld: Not With a Bang, but an Update to iWork

John Paczkowski — Tue, 06 Jan 2009 23:28:43 +0000

Analysts expecting Apple’s Macworld 2009 keynote to be light on revolutionary products or otherwise “modest” or “neutral” were not disappointed.

Well, they were disappointed, but they knew they were going to be disappointed going in, so it shouldn’t have come as a shock, right?

Said Robert Francello, head of equity trading for Apex Capital, “There were some innovative products, but no true blockbusters. People were bullish going into it, and now they’re kind of taking money off the table.”

Indeed, Apple shares closed down 1.65 percent today, a clear reflection of the lackluster announcements made this morning.

“[The] Macworld keynote was underwhelming as expected,” said Piper Jaffray analyst Gene Munster. “The lack of significant announcements adds clarity to Steve Jobs’ absence. We believe he remains the primary spokesman and active leader of Apple.”

Well, obviously. He did say as much yesterday, didn’t he? That being the case, perhaps there’s something to be read into the first song of the short Tony Bennett set that closed today’s event, “The Best is Yet to Come.” Apple (AAPL) didn’t uncrate the new iMacs or Mac minis that many expected of it this morning. Nor did it demo Snow Leopard, the next iteration of OS X. Perhaps it will in the months ahead, at its own event and on its own terms. And with Steve Jobs presiding, of course. The best is yet to come, right?

Macworld ‘09 Keynote Coverage:

Macworld ’09 LIVE

Macworld ’09: All About the Mac, iLife ’09, Faces and Places

Macworld ’09: iMovie ’09

Macworld ’09: Garageband “Learn to Play,” “Artist Lessons”

Macworld ’09: iWork ’09, iWork.com

Macworld ’09: 17-inch MacBook Pro With 8-Hour Battery

Macworld ’09: One Last Thing–DRM-Free iTunes Plus, 3G iTunes and Tony Bennett

Macworld 2009: Live and in Living Color [PHOTO SLIDESHOW]