Majestic Research

Investor’s Business Daily

Returning To Form, Apple's Jobs Touts Newest iPod, iTunes

By Bonasia and Patrick Seitz
Published: September 10, 2009

Apple (AAPL) CEO and master showman Steve Jobs returned to the public stage Wednesday, overshadowing his company’s announcements about new iPod portable media players.

Apple added a video camera, microphone and speaker to its iPod Nano — its most popular model — making it a camcorder.

Apple also cut prices on its iPod Touch and iPod Shuffle models to be more competitive this holiday season against Microsoft (MSFT) and other rivals. And it upgraded its companion iTunes software with a redesigned online store and new features.

Jobs hasn’t hosted an Apple event since last October, when his frail appearance raised concerns about his health. In January, he took a six-month medical leave.

“I’m very happy to be here today with you all,” Jobs said after being greeted with a standing ovation and loud cheers at the Yerba Buena Center for the Arts in San Francisco.

“As some of you know, about 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 am alive because of their generosity. I hope we can all be that generous.”

Jobs then launched into a presentation of Apple’s new iTunes 9 software. The latest version of its program for managing, playing and purchasing music and video allows users to transfer songs, movies and TV shows to up to five computers in their homes.

A new offering called iTunes LP brings back the vinyl-record album experience with lyrics, liner notes and photos, plus videos. Another offering called iTunes Extras provides something similar with movies, offering documentaries, deleted scenes and interviews for select movies such as “Batman Begins,” “Iron Man” and “Twilight.”

Richard Klugman, an analyst with Majestic Research, called the product announcements “incremental.”

“Certainly nothing in the announcements was anywhere near the headline grabber as Steve Jobs walking out on stage,” Klugman said. Jobs has kept a low profile since he returned to work at the end of June.

Jobs looked thin. But he’s looked that way for a while now, and people are getting used to it, says Ben Bajarin, an analyst with Creative Strategies.

With its latest iPod Nanos, Apple is taking aim at Cisco Systems’ (CSCO) popular Flip pocket camcorders. The new Nanos will let users easily shoot videos on the fly and upload them to YouTube. They also feature a larger 2.2-inch color display.

The new Nanos include a built-in FM radio tuner that lets users pause the audio and a pedometer, both firsts for Apple. The new Nanos also let users “tag” songs they hear on the radio so they can be purchased later when synched to iTunes.

Apple’s iPod lineup includes the iPod Shuffle, now starting at $59 ($20 cheaper than before); the iPod Nano, starting at $149; the iPod Touch, starting at $199 ($30 less than before); and the iPod Classic at $249.

Apple shares dipped after the media event — a not-uncommon occurrence after such events — as investors sold on the news and lack of surprises.

Apple closed down 1% at 171.14.