Next week, Apple's CEO Tim Cook will unveil, what we now know, will be called The Apple Iphone 5. This is Apple's next generation phone to compete with Samsung's Galaxy S3 launched earlier in June and of course, facing possible bans in the US after Apple's victorious court case which I blogged about here: http://streamabout.blogspot.ie/2012/08/court-ruling-apple-persist-samsung.html .
It will also be compared Nokia's Lumia 930, launched this week, although the mobile phone pioneer, Nokia, has had its shares cut to "junk status". So hardly a competitor.
What we didn't know, was that Apple was secretly working on the launch of iradio, as big a gamble as itunes - but more of that in a minute.
The Apple Iphone 5 we know very little about except strong rumours.
It's going to be taller than the current iphone with therefore, a taller screen and about 30% thinner. The connector gadget is getting smaller, with the connectors getting better, giving much faster wireless and ultimately, quick 4G connections. It's likely to have more RAM and a faster processor - so generally just a better phone.
More importantly, reports strongly suggest that Apple is planning its own internet radio service allowing it to compete in the music streaming business against people like Pandora, We7 (UK owned by Tesco) and Spotify.
What would happen is that people select tracks from a 'catalogue' and play them continuously via an internet feed or, more likely, it will feed you music based on your interests (as distinct from actually picking the track).
Rather than owning them or downloading them as in the itunes model, you get continuous radio based on what you like.
Depending on whether Apple choose to go for the model where customers pick their tracks or instead, feeding them music based on interests, they will be a direct head-to-head with Pandora/Spotify.
Spotify (where you pick your own tracks) loses money quite heavily due to music licensing issues whereas by feeding out music based on listener interests (Pandora), it has been much more successful.
Most of us know the type of music we like but don't know what we want. So developing internet radio based on a indication of preferences, seems to make sense.
Other similar business saw share prices fall dramatically Friday, on foot of the news. Apple is such a good company, nobody wants to see it enter into the same space and even talk of Apple entering into online radio saw Pandora shares drop 18%. I think the radio option makes more sense (streaming you music based on your preferences) and indeed it's not that long ago when I chatted to Irish radio businessman, Dermot Hanrahan, who outlined exactly the same vision. Yet again, ahead of his time.
Online radio, iradio by Apple, will be a world beater and by being deeply integrated into their products, such as the Iphone 5, will guarantee distribution. Furthermore, if they get a lot of listeners to their iradio, it will also generate sales on itunes, as when listeners hear a track they like, they might want to buy it.
Great business.
Unlike the giants of old, Microsoft as a clear example, Apple do not sit on their hands. Innovation and invention precedes their greatness.
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