NATIONAL INSTITUTE OF FASHION

TECHNOLOGY, NEW DELHI

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Product branding
OF
Apple iPod
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 Submitted By :-

Amit Kumar Singh (01)

M.Ftech A.P. SEMESTER-II
iPod
The current iPod line. From left to right: iPod Shuffle, iPod Nano, iPod Classic, iPod
 Touch.
Manufacturer Apple Inc.
Type Portable Media Player (PMP)
Over 151,000,000 worldwide
Units sold
as of April 2008[1]
CPU Samsung ARM
Online iTunes Store
 services App Store

Introduction:

iPod is the brand of portable media players designed and marketed by Apple Inc. and
launched on October 23, 2001. The product line-up includes the hard drive-based iPod
Classic, the touch screen 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 Micro drive miniature hard drive). As with many other
digital music players, iPods, excluding the iPod Touch, can also serve as external data
storage devices. Storage capacity varies by model.
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.
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. 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. As of
September 2008, more than 173,000,000 iPods had been sold worldwide, making it the
best-selling digital audio player series in history.
History and design:

The iPod line came from Apple's "digital hub" category, 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," 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, and design engineer Jonathan Ive. 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."
Apple did not develop the iPod software entirely in-house, instead using PortalPlayer's
reference platform based on 2 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.
Apple contracted another company, Pixo, to help design and implement the user interface
under the direct supervision of Steve Jobs. 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 the course of 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. He was unable to secure funding to renew the US$ 120,000 worldwide patent, so
it lapsed and Kramer never profited from his idea. Kramer is now in talks with the
company to discuss how he will be reimbursed.

IP mandate & Goals:

The primary goals are:
• To improve local innovation systems
• To help in commercializing intellectual property
• To improve the climate for investment..

With particular reference to transitional economies, In light of these goals this

presentation is structured as follows:
• Innovation & Business-University Collaboratio
• Technology Transfer
• The Strategic Management of Intellectual Property Assets
• Value transference, functional differentiation and sustainable differentiation
• IP Administration
• Maintenance & policing of intellectual property
Apple’s Innovation-based Business Strategy:

Rapid technological advances have increased the capabilities and use of personal
computers, thereby triggering frequent innovation of new products. Apple stays ahead of
competition because of its emphasis on innovation-based business strategy since its
inception. Over the years, Apple has continuously invested in research and development
(R&D) to design and develop new products and peripherals. Apple maintains competitive
advantage by effectively integrating an entire solution, including the hardware (iPod),
software (iTunes), and distribution of third-party digital content (iTunes Music Store).
The company has succeeded in implementing innovation-driven growth strategy despite
persistently difficult economic environment in the beginning of the millennium.
According to Steve Jobs, CEO, Apple, "This is the direct result of our focus on
innovation and the immense talent and creativity at Apple. We could not be more excited
about the new products we're working on for 2006."

Think Different Apple's phenomenal growth was possible because of its

continuous thrust on innovation, resulting in a range of products like Mac OS X v10.2
Jaguar, 'Switchers', iPods, iMacs and iBooks. These innovative products have attracted
new customers and are in great demand. The demand for iPods exceeded its supply! For
instance, in October 2001, 1 million iPod Nanos were sold in the 17 days between the
device's debut and the end of that quarter. The videos purchased and downloaded by
customers from Apple’s iTunes Music Store, which had about 3,000 music videos, were
more than 2 million songs, over 1,000 independent labels, Pixar and Disney short films,
and popular TV shows. According to Peter Oppenheimer, Senior VP and CFO of Apple,
the company sold 6.45 million iPods in total in the fourth quarter of 2005. Apple offered
the TV shows at $1.99 per episode, while music videos and short films were also sold at
$1.99 each. By February 2006, 12 million videos were purchased and downloaded, which
made iTunes Music Store the world’s most popular video download store. By February
2006, about 1 billion songs were sold on the Apple iTunes digital music store. Also,
compared to 2004, Apple’s desktop sales in 2005, increased by 56%, while notebook
sales increased by 41%. Clearly Apple’s physical and financial achievements are the
result of its deep commitment to continuous innovation-led business strategy. The highly
competitive market for personal computers and related software, and peripheral products
is characterized by rapid technological advances in both hardware and software. The
main competitive factor is innovation in products and services.
STAGES IN NEW
PRODUCT
DEVELOPMENT:

Brainstorming
Filter ideas

Ask customers

Formulate strategy

Estimate sales, costs and profits

Prototype created

Trial launch in a few areas

Putting into production

Intellectual property of Rights of Apple ipod:
Apple’s Intellectual Property Focus The core competency of Apple is its
capability to innovate continuously, which was systematically facilitated by
investment in R&D. Apple’s R&D expenditures totaled $534 million, $489 million,
and $471 million in 2005, 2004, and 2003, respectively. Apple’s continuous
investment in R&D provides returns because the company protects its
innovations through patents. The company takes stringent action against those
who infringe upon their intellectual property rights. For instance, Apple has
recently accused Iops, a minor Korean portable music player manufacturer of
MP3 player models, Iops Jock and Iops Z3, of illegally copying the design of its
mega-selling iPod music player. According to Apple, Jock and Z3 models
resemble the exterior design and case colors of the iPod Mini, especially, the
layout of a display screen and a round-shaped control button on the front panel.
Apple has lodged a complaint with Iops demanding Iops to stop selling the two
products and compensate Apple for their lost sales. Apple currently holds patents
and copyrights relating to certain aspects of its computer systems, iPods,
peripherals and software. In addition, the company has registered, and applied
for registering of trademarks and service marks in the U.S., and a number of
foreign countries for its “Apple,” logo, “Macintosh,” “iPod,” “iTunes,” “iTunes
Music Store,” and numerous other trademarks and service marks.
Patent Trade secret
Copyrights Trademarks
 Design Trademark

Trademark Protection:

The name iPod was proposed by Vinnie Chieco, a freelance copywriter, who (with
others) was called by Apple to figure out how to introduce the new player to the public.
After Chieco saw a prototype, he thought of the movie 2001: A Space Odyssey and the
phrase "Open the pod bay door, Hal!", which refers to the white EVA Pods of the
Discovery One spaceship. Apple researched the trademark and found that it was already
in use. Joseph N. Grasso of New Jersey had originally listed an "iPod" trademark with
the U.S. Patent and Trademark Office in July 2000 for Internet kiosks. The first iPod
kiosks had been demonstrated to the public in New Jersey in March 1998, and
commercial use began in January 2000, but had apparently been discontinued by 2001.
The trademark was registered by the USPTO in November 2003, and Grasso assigned it
to Apple Computer, Inc. in 2005.
Apple-cart of Innovation Apple has 143 recently published patents, and already has a
stockpile of 1,943 patents. In February 2006, the US Patent and Trademark Office
(USPTO) granted Apple a patent related to touchscreen technology, which it had applied
for on January 31, 2005. The patent, relating to different types of touchscreen technology
like touch pad and touch-sensing technology, could be applied on Apple’s numerous
products such as iPod, iMac, iBook, MacBook, and PowerBooks. Apple’s iPod is
supposed to be one of the first products to get this technology. According to Apple, the
US patent process is a very tedious one but Apple would continue to pursue all its patent
applications.
 According to ThinkSecret, an online magazine, Apple is now developing a
button-less iPod video player, which has a 3.5 inch diagonal display with Touchscreen
technology. This video player would have a bigger and wider display screen for watching
the video content, and users could control the video player by just using the screen.
ThinkSecret also claim that Apple had developed this product long before, but was just
waiting for the grant of patent to release the product into the market to avoid any
unwarranted litigations, as witnessed by it in the past. Apple is also reported to be
working with a couple of companies in developing the digital click wheel display
technology.
 Apple expects to retain the exclusive usage rights of this technology for a
definite span of time, and market it effectively to capture market share. Apple's success
of iPod was because of several factors such as on-screen menu, its distinctive click wheel
and general trendiness. iPod has catapulted Apple on the top of the digital music market
and earned it immense popularity. iPod contributes about 75% of all MP3 players sold in
the U.S. Since iPod’s launch, Apple has sold more than 21.8 million iPods; 18.1 million
iPods were sold in 2004 alone. In October 2005, Apple filed for two patent applications
related to iTunes. The first patent application is titled “Method and system for sharing
playlists.” The invention relates to graphical user interfaces (GUI) that help users share
or view a playlist, perform different search queries, sampling, listening, buying items
listed in a playlist, or notified to the user through publication of the playlist. The second
patent application titled “Method and system for configurable automatic media
selection,” relates to Party Shuffle. In January 2006, Apple surprised the market by
shifting from IBM’s PowerPC chips to the Intel platform, and by launching the Intel
powered Apple iMac and MacBook Pro.
Patent disputes:
In 2005, Apple faced two lawsuits claiming patent infringement by the iPod line and its
associated technologies: Advanced Audio Devices claimed the iPod line breached its
patent on a "music jukebox", while a Hong Kong-based IP portfolio company called Pat-
rights filed a suit claiming that Apple's FairPlay technology breached a patent issued to
inventor Ho Keung Tse. The latter case also includes the online music stores of Sony,
Real Networks, Napster, and Music match as defendants.

Apple's application to the United States Patent and Trademark Office for a patent on
"rotational user inputs", as used on the iPod interface, received a third "non-final
rejection" (NFR) in August 2005. Also in August 2005, Creative Technology, one of
Apple's main rivals in the MP3 player market, announced that it held a patent on part of
the music selection interface used by the iPod line, which Creative dubbed the "Zen
Patent", granted on 9 August 2005. On 15 May 2006, Creative filed another suit against
Apple with the United States District Court for the Northern District of California.
Creative also asked the United States International Trade Commission to investigate
whether Apple was breaching U.S. trade laws by importing iPods into the United States.
On 24 August 2006, Apple and Creative announced a broad settlement to end their legal
disputes. Apple will pay Creative US$100 million for a paid-up license, to use Creative's
awarded patent in all Apple products. As part of the agreement, Apple will recoup part of
its payment, if Creative is successful in licensing the patent. Creative then announced its
intention to produce iPod accessories by joining the Made for iPod program.
Apple’s Gross Profit margin on 30 GB Video ipod:

Applying all these estimates to the retail price, we were able to arrive at an estimate of
Apple’s gross margin on each 30GB Video iPod sold. Apple is the lead firm in the iPod
value chain, incurring costs for R&D, marketing, coordination of the entire value chain,
and other overhead costs such as warranty. It is the residual claimant for value capture, as
detailed in Table 2, in that it is the only company that bargains with all other actors in the
value chain.
Table 2. Derivation of Apple’s Gross Margin on 30GB Video iPod

Retail price $299

Distributor Discount (10%) ($30
Retailer Discount (15%) ($45
Sub-Total $224
(estimated wholesale price)
Factory Cost ($144
Remaining Balance $80
(estimated Apple gross profit
Apple Gross Margin ($80/$224 36%

Apple’s estimated gross profit on these units would be $80,

which works out to a gross margin of 36 percent of the $224
estimated wholesale price. As a point of comparison, Apple’s
reported corporate gross margin for all products in the year
ending September 30, 2006 was 29 percent.30 Apple’s corporate
numbers reflects various iPod-related costs such as warranty
expenses that are not included in our analysis, and also reflects
margins for non-iPod products. Our $80 estimate of Apple’s
gross profit is greater than the price of any single input, so it is
definitely greater than the value captured by any of its partners.
And for sales through Apple’s own web or store outlets, it
captures the retailer discount of $45, giving it a gross margin of
56 percent on those units.
Sales position of iPod:
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. 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. 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.

In January 2007, Apple reported record quarterly revenue of US$7.1 billion, of which
48% was made from iPod sales.
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. Apple and several industry analysts suggest that iPod users are likely to purchase
other Apple products such as Mac computers.

On 5 September 2007, during their "The Beat Goes On" event, Apple announced that the
iPod line had surpassed 110 million units sold.
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.

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. Apple has sold over 163 million iPods to date (see chart).

On 21 October 2008, Apple reported that only 14.21% of total revenue for fiscal quarter
4 of year 2008 came from iPods.

Industry impact of Ipod:

iPods have won several awards ranging from engineering excellence, to most innovative
audio product, to fourth best computer product of 2006, iPods often receive favorable
reviews; scoring on looks, clean design, and ease of use. PC World says that iPod line has
"altered the landscape for portable audio players". Several industries are modifying their
products to work better with both the iPod line and the AAC audio format. Examples
include CD copy-protection schemes, and mobile phones, such as phones from Sony
Ericsson and Nokia, which play AAC files rather than WMA.
In addition to its reputation as a respected entertainment device, iPods have also become
accepted as business devices. Government departments, major institutions and
international organizations have turned to the iPod line as a delivery mechanism for
business communication and training, such as the Royal and Western Infirmaries in
Glasgow, Scotland where iPods are used to train new staff.

iPods have also gained popularity for use in education. Apple offers more information on
educational uses for iPods on their website, including a collection of lesson plans. There
has also been academic research done in this area in nursing education and more general
K-16 education. Duke University provided iPods to all incoming freshmen in the fall of
2004, and the iPod program continues today with modifications.

Advertising Campaigns:

Apple has used a variety of distinctive advertising campaigns to promote its iPod
portable digital media player. The campaigns include television commercials, print ads,
posters in public places, and wrap advertising campaigns. All of these advertising
techniques are unified by a distinctive, consistent style that differs from Apple's other
ads.
The more famous commercials and print advertising featured dark silhouetted characters
against bright-colored backgrounds. The silhouettes are usually dancing, and in television
commercials are backed by up-beat music. The silhouettes are also usually holding iPods
and listening to them with Apple's supplied earphones. These distinctively appear in
white, so that they stand out against the colored background and black silhouettes. Apple
changes the style of these commercials quite often depending on the song's theme or
genre.
The original television commercials and posters featured solid black silhouettes against a
solid bright color, which usually changed every time the camera angle changed. Some of
the television adverts also depicted highlights on the silhouettes using darkened shades of
the background color, and shadows on the floor. Since then, various commercials in the
campaign have changed the format further:

• in 2004, Wired Magazine featured a new service where people could create their
own ipod ads from their personal photos. Service is still active at: iPod My Photo
• The TV commercials for the iPod shuffle used a green background with black
arrows moving in the background representing the "shuffle" icon. The silhouettes
danced on top of the arrows as if they were a moving floor while listening to iPod
shuffles hanging from white lanyards.
• The release of the fifth-generation iPod, two TV commercials, one featuring
Eminem and the other Wynton Marsalis, made radical changes to the style, by
exchanging the solid changing backgrounds for abstract composite backgrounds
based around a main color (orange and blue respectively). The camera shots
alternate between the artists performing their songs (Eminem sporting a white
 microphone, Marsalis' drummer sporting white drumsticks) and traditional
silhouette dancers listening to iPods. The solid silhouette was also traded for a
more varied silhouette, which shows certain facial features of a person. Apple
CEO Steve Jobs has suggested that this more complex composition will be the
style of future commercials as well.
• In August 2006, another reimagining of the iPod commercial was introduced
through an ad for Bob Dylan's album available in the music store, Modern Times.
In this new style, the only silhouette facet of it was that it seemed lighting was
reduced on the figure of Bob Dylan and the female dancer, while the iPod was
 brightened. Color variation, as well as reflection on the face of the guitar, is
evident. The ad is much more realistic and the people, as well as details, are much
more visible. This ad was an almost complete departure from the traditional, and
even the Eminem-styled adverts of the past.
• At Macworld 2007, Apple debuted their new ad campaign, featuring a reverse
color scheme of previous campaigns: Colored silhouettes on a black background,
as well as a second styled ad featuring colored silhouettes amongst a dynamic,
moving and multi-colored background. .
• YouTube member njhaley (More commonly known as Nick Haley) created a fan
commercial of the iPod touch. Apple was impressed with the commercial and
then contacted him about putting the commercial on the air. He and Apple's
advertising agency TBWA then got to work on making a more polished version of
the Ad which ran during the 2007 World Series on Fox.[1]
• On May 20, 2008, a new ad premiered during the American Idol finale. It follows
the original form but with even more animated backgrounds and Coldplay is
shown in the shadow. The song was Viva la Vida by Coldplay.
 • In early 2009 an add for the iPod touch was released. It featured a the touches
new interactive gaming experience, displaying an number of games being played
in a number of ways, from uses of the accelerometer to new touch sensitive
games to a combination of both. Each game was played on a different iPod which
would come to the front whenever a new gaming style was used. The add featured
the song "No You Girls" by Franz Ferdinand, and described the new iPod touch as
the "funnest iPod ever".

REFERENCES:
• http://patentcircle.blogspot.com/2006_06_01_archive.html

• http://wipo.int

• http://apple.com

• http://productstrategy.squarespace.com/
• http://wikipedia.org