Filed under: Products and services, Launches, Apple Inc (AAPL), Marketing and advertising, AT and T (T), Nokia Corp. (NOK), Research in Motion (RIMM), iPhone

So what happened?

For months now that investors and Apple Inc. (NASDAQ: AAPL) enthusiasts have been expecting the 3G iPhone. The past few weeks, there was so much hype that speculation over features, dates and even a new business model surfaced daily, from bloggers, reporters, investors and analysts.

Finally the day came and Steve Jobs announced a 3G iPhone for $199 to be released on July 11 in 22 countries at first with the intention of selling the iPhone in 70 countries. Not only that, but the new model includes a GPS and push email.

Well, nearly all analysts have concurred that for Apple to reach the 10 million iPhones sold in 2008 target, and the iPhone to attract more business users and take market share from Research in Motion (NASDAQ: RIMM) and Nokia (NYSE: NOK), it would have to do just that — get a 3G iPhone with push email and GPS.

Apple also said it will soon open up its iPhone software store where iPhone software add-ons and third-party programs could be purchased, another key revenue source for Apple.

So with all that, why was the stocks down 3% this day? For one thing, it could be the steep price cut in the iPhone. For another, it could be because the new business model is more traditional and eliminates the revenue-sharing model where AT&T Inc. (NYSE: T) paid shared monthly service revenue with Apple. It also could be that the anticipation had already driven the price of Apple stock and when no earth shattering news were announced, investors took some profit.

Personally, while of course I believe the iPhone is great and will contribute more and more to Apple’s revenue, I’m a tiny disappointed the focus was nearly solely on that business segment. I’d have wanted more Mac developments, even though in Jobs mind, he likely sees the two converging at some point in the future…

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Filed under: Products and services, Consumer experience, Amazon.com (AMZN), Marketing and advertising, Ideal Purchase (BBY)

The Associated Press reported Monday that vinyl records have made a surprising return in some markets in the last year. A story about an employee at the Fred Meyer retail chain mistakingly ordering the vinyl edition of an album instead of the special edition CD with a DVD illustrates the impressive jump LP sales made between 2006 and 2007, rising more than 36% while CD sales dropped 17% due to increased digital downloads (CD sales remain hundreds of millions of copies higher though). The article also indicates that regional and specialized chains are not the only outlets selling LPs successfully, with both Amazon.com, Inc. (NASDAQ: AMZN) and Best Purchase Co, Inc. (NYSE: BBY) creating sections and testing sales.

The resurgence in LP sales has also stoked the raging debate about differences between analog and digital formats. Melinda Merrill, a spokeswoman for Fred Meyer told the AP “It’s not just a nostalgia thing, the response from customers has just been that they like it, they feel enjoy it has a superior sound.” The AP also reports that sound isn’t a central factor in increasing sales. The experience of listening to an LP, much more involved than a CD or a digital file is drawing new listeners and keeping old ones. This tendency has lent to more sales of players and the pressing business has been renewed.

In the end, increased LP sales make it clear that consumers care about more than the music that is produced. Jay Millar, a director of marketing at United Record Pressing indicates that he feels vinyl is “for the die-hard music consumer,” or the consumer that isn’t looking for the most convenient method of acquiring an album and its music. Unfortunately, the mainstream music industry and its consumers will continue the push away from LPs and CDs, but if regional or independent retailers can keep the limited pressings intact via strong and surprising sales, then the history of the music industry and the “original” format that is as close to live music as you can get will continue to live.

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Filed under: Products and services, Consumer experience, Apple Inc (AAPL), Wal-Mart (WMT), Marketing and advertising, Verizon Communications (VZ)

AC/DC has become the latest veteran music act to join with Wal-Mart Stores, Inc. (NYSE: WMT) to release a new album solely with the retailer, according to the Wall Street Journal. The currently untitled album is expected later in the year and will be the first album of new material from the Australian rockers since 2000, while a tour in support is also expected to follow the new release. Even though slated for release solely in Wal-Mart stores, the album is distributed by the band’s longtime label Columbia Records, a part of Sony BMG Music Entertainment.

AC/DC follows a number of big selling artists: Garth Brooks, the Eagles, and Journey. The Eagles famously released their first new album in 28 years with Wal-Mart and according to Nielsen Soundscan for Billboard, Long Road Out of Eden has sold nearly 3 million copies in the United States. Journey released an album of new material and newly recorded hits last month with Wal-Mart. In addition to this coup from Wal-Mart, AC/DC continues to remain one of the only acts not present in Apple Inc.’s (NASDAQ: AAPL) iTunes Store, the largest music retailer.

The band’s music has been available in digital from from Verizon Communications (NYSE: VZ) VCast Music service since March 2007, but only in album form — a format iTunes does not support. However, AC/DC digital downloads weren’t available on Verizon phones as full albums were too big. The new album from the band certainly has excellent prospects with Wal-Mart, but an even greater coup for the retailer would be to score the digital catalog for sale on the company’s own digital store.

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Filed under: Products and services, Consumer experience, Marketing and advertising

Paul McCartney is reportedly set to announce plans for a big world tour that’ll also be his last before settling down and spending more time with young daughter Beatrice. According to the Sunday Mirror, the 100 shows planned for the two-year long tour will garner McCartney over

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Filed under: Products and services, Launches, Apple Inc (AAPL), Marketing and advertising, iPhone

It’s so odd to see a developer’s conference turn into a PR machine for arguably the world’s hottest tech company, but about all of the geek crowd is sitting on pins and needles this morning waiting for the Worldwide Developer’s Conference (WWDC) from Apple, Inc. (NASDAQ: AAPL) to begin. Why? Well, the expected unveiling of the iPhone 2, of course.

As I wrote last week, Apple’s shares may inch towards $200 today depending on what product bombshell Steve Jobs drops on the world. If you bought shares when they were in the $120 range back at the start of 2008, are you going to take a profit should shares reach the $200 level? Apple, like most of the market, took a beating this past Friday as the DJIA dumped almost 400 points in a single day, but that doesn’t mean AAPL shares will not make up for lost ground. Customers are still buying Mac computers and iPhones like there’s no tomorrow — recession or not.

The trick is this: Apple could score a major coup if an iPhone 2 is announced today — and is immediately available for buy at Apple stores. This is being predicted, and it’s not really out of the realm of reality. The original iPhone was a launch of monstrous proportions, but it was announced in January 2007 and released in June 2007. The hype built in that gap was so massive that iPhones flew off the shelves once June came last year. The hype is now for the newer, speedier iPhone that has extended abilities and a possibly lower cost. If that happens when Jobs takes the stage at 9:30 a.m. PDT this morning, expect the market to take notice and AAPL shares to lift past their ending $186.25 price from Friday’s market close.

The hysteria will start soon — catch it here live.

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