World of Apple

AppleInsider is reporting that multiple users are claiming that Apple accidentally released a download link to iTunes 8 on Sunday evening. The link which was promptly removed reportedly contained a download for a pre-release copy of iTunes 8.

The download link and file in question have all been removed.

iTunes 8 is expected to be officially released on Tuesday during a special event being held by Apple.

On Tuesday Apple will be holding a special media only event at the Yerba Buena Center in San Francisco, Andrew Mager has posted a photo of Apple making some preparations to the exterior of the building.

The banner that has been put up shows an iconic silhouette with an iPod in hand, fortifying rumours that the event will just be music based.

Ars Technica originally had some doubts on the likeliness of iTunes 8 making an appearance at next Tuesday’s media event but now believes that iTunes 8 is expected to be released at the event.

In addition to the release of iTunes 8, Ars also believes that the latest iPhone firmware will be released.

Of interest is that Ars reports that features in the 2.1 firmware “were specifically removed from developer seeds in order to keep them secret from the world”.

Engadget has posted of a purported photo of the fourth generation iPod nano which is expected to be released at next Tuesday’s special event.

The photo is consistent with rumours that the new iPod nano would return to the long thin form factor and feature a longer display. The new iPod nano also reportedly has a curved design.

It is being speculated that the new visualisation which is meant to be making its way to iTunes 8 could be based on Flight404’s Magnetosphere.

Kevin Rose described the new visualiser in iTunes 8 as “trippy” and Magnetosphere certainly fits the bill.

Magnetosphere was a free plugin for iTunes until a few months back when the download was pulled, the creator has since stated that the software has been “sold to a third party”.

Another example of Magnetosphere is available in higher resolution here.

[Update] Kevin Rose has confirmed on Twitter that Magnetosphere is the visualisation he saw in a version of iTunes 8.

This week saw the opening of another Apple Store in the UK, on Thursday Apple held the grand opening for the Highcross Apple Store in Leicester.

Apple is also set to extend its presence in Australia, just three month ago the first Apple store in the country busted open its doors in Sydney, that store was followed closely by the Chatswood Apple store.

Now a third store is ready to open on September 13 at 10.00am in Chadstone.

Moving back to Europe, ifoAppleStore is reporting that the first Apple store is due to open at the end of September in Geneva. The store recently received a new black facade that read “Bientôt ouvert,” meaning, “Opening soon”.

ifoAppleStore is also noting that Switzerland’s second Apple store is nearing completion in Zurich at the Glattzentrum shopping mall northeast of downtown.

Despite next weeks Apple event being penned as “a very big deal” Shaw Wu has today warned clients that the September 9 event could be “underwhelming”.

In the same note the analyst for American Technology Research noted that MacBook Pro and MacBook refreshes are not expected at next weeks event as the focus of the event appears to be on Apple’s non-Mac business.

The analyst retained his “buy” rating on Apple with a 6-12 month price target of $220.

Full transcript of Wu’s note after the jump.

Low Expectations for a Break-Through Announcement:

While there is always room for surprise, it seems this event may be somewhat underwhelming vs. previous expectations and events. Over the past several days, AAPL shares have pulled back as expectations have likely come down.

Likely iPod Centric:

The “Let’s Rock” invitation and our recent supply chain checks suggest this will likely be an iPod-centric event. This may be viewed as disappointing as some were hoping to see new Macs. We think radical changes in the iPod portfolio are less likely given the great success and extensive refinement iPod has already undergone. We anticipate a modestly redesigned 4th generation iPod nano and slimmer 2nd generation iPod touch with lower price points and higher storage capacities. The future of the 6th generation iPod classic is unclear as our checks indicate build plans have been more modest as it has become more a niche product.

New Macs Not Likely At This Event:

We continue to believe that MacBook Pro and MacBook are due for refreshes with more radical redesigns, but won’t likely be unveiled at this event. We are picking up that MacBook Air could see a minor refresh and potential price cut to increase its value proposition. Checks indicate that build plans have slowed somewhat from earlier robust levels with customers opting for MacBook or MacBook Pro.

Potential Wildcards:

We believe wildcards on new products are:
1) an advanced AppleTV with DVR and TV tuner capabilities and/or
2) new touch form factors (iPod-Mac hybrid) with larger screens.

Conclusion:

While AAPL shares will likely remain volatile given market sentiment, we view current levels as a buying opportunity for longer-term investors. AAPL remains one of the best positioned large-cap technology companies. We see upside to $220 based on 32.5x our CY09 EPS of $6.73.

Event Likely Less Surprising But There Is Always Room for the Unexpected:
Heading into this event, our concern is that it could end up being one of the less surprising ones simply because AAPL product expectations are always high (given its strong track record and world-class R&D) and radical changes in its iPod business are likely more difficult to achieve given the great success and extensive refinement it already has. Nonetheless, there is always the likelihood for the unexpected and we think there are two potential wildcards including an advanced AppleTV with DVR and TV tuner capabilities and new touch form factors with larger screen (iPod-Mac hybrid).

New iPods Most Likely:

Our recent supply chain checks indicate that this event will most likely usher in new iPods, including a modestly redesigned 4th generation iPod nano and slimmer 2nd generation iPod touch with lower price points and higher storage capacities. The fate of its 6th generation iPod Classic is unclear as build plans have been more modest. We think this product remains attractive to those users who value high-capacity storage (80 and 160 GB), but the “old” design and cannibalization by iPod touch limit its appeal.

New Macs Not Likely At This Event:

We continue to believe that MacBook Pro and MacBook are due for refreshes with more radical redesigns, but won’t likely be unveiled at this event as the focus appears to be on its non-Mac businesses. In addition, we are picking up that MacBook Air could see a minor refresh and potential price cut to increase its value proposition as build plans have slowed from earlier robust levels as customers have opted for MacBook or MacBook Pro instead.
Lower iPod Price Points Make A Lot of Sense.

In this tough macroeconomic environment, we believe price cuts make a lot of sense to re-accelerate iPod sales, particularly iPod touch, which is somewhat mispriced (outside of its recent back-to-school promotion) at $299 (8 GB), $399 (16 GB), and $499 (32 GB) price points given the lower $199 (8 GB) and $299 (16 GB) price points of the 3G iPhone with 2-year service plans. We believe AAPL should be able to absorb lower price points without impacting its margins materially given very favorable component pricing trends.

Competitive Advantages Intact:

We believe AAPL’s key competitive advantages remain its 1) strong brand loyal customer base; 2) vertically and horizontally integrated hardware, software and service model (iPod + iTunes, Mac, Apple TV, and iPhone); 3) proprietary interface technologies (clickwheel and multi-touch); and 4) unique and pleasant customer experience with its Apple stores.

Macro headwinds are becoming more apparent:

We continue to see AAPL as the best play on digital media in the home and a large beneficiary of the shift to mobile computing. In two of its three big franchises, Mac and iPhone, penetration is very low and starting in the higher-income demographics. The disturbance in the macroeconomic environment is within lower-income demographics and financial institutions with exposure and impact to overall liquidity. This could certainly spread, but we believe AAPL’s business will remain strong in the near- to medium-term. Enough high-end consumers are still buying tech, though commodities inflation could pressure future margins.

Now, I know we’re supposed to be all enamored with the Get A Mac ads, but I think credit should be given where credit is due. Microsoft’s new ad doesn’t even really have anything to do with computers. The only computer related bit in the whole ad is revolved around Bill Gates “adjusting” his underwear.

If you can sell software with an old man wiggling his hips while holding discount shoes and a churro, you deserve a pat on the back no matter who you are.

Alibaba the world’s largest B2B marketplace has posted a photo of what appears to be a 4th generation iPod nano.

The image corresponds with rumours and other imagery that has been making the rounds over the last week.

On September 9th, Apple will be holding a special event where the new iPod nano is expected to be released.

iLounge has published what it claims are the dimensions of the new iPod nano and iPod touch which are expected to be released next week at the September 9th Special event.

The diagrams suggest that the iPod nano will return to the longer design of the second-generation model. The diagrams also suggest somewhat of a curved design.

The iPod touch appears to be receiving a similar look to the iPhone 3G, gaining a more tapered design. The diagrams show a slightly thicker iPod touch compared to the current model and external volume controls also appear present.

Separately, iPod case manufacturer XSKN has begun promoting 4th generation iPod nano protection cases.