How can Apple (NASDAQ: AAPL) turnaround the iPod sales growth?

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Apple Inc. (NASDAQ: AAPL) is one of the Top 20 Innovators of The Innovation Index, and the number one Innovator in the world.

iPod - Apple's best innovation, introduced in 2001 and masterminded by Steve Jobs, combines outstanding design, easy-to-use interface, superb performance, and an experience like no other. Apple assumed the world’s number one innovative company position in 2005, and held it again in 2006 and 2007 in large part due to the exponential growth of iPod – aptly called the iPod phenomenon.

Apple has sold more iPods every year since its introduction. In 2007 alone, Apple sold more than 52 million iPods, 6 million more than in 2006, and eclipsed the cumulative total of 100 million iPods sold since introduction. Apple also introduced the all new iPod touch in 2007, and new models in 2008. Apple reported in the quarterly earnings conference call that although the introduction of the high-end iPod touch may have reduced the sales volume growth of iPod in 2007, it increased the average selling price.

On the one hand, Apple is poised to have a great year of iPhone sales - Apple Innovation blog and Innovation Index Group, Inc. estimate that Apple will sell more than 12 million iPhones in 2008. Most of the industry analysts estimate Apple to sell more than 8 million iPhones in 2008. But will the growth of iPhone business cannibalize the growth of iPod business?

The iPod sales volume growth peaked in 2004 with a growth of 469% from 2003. However, since 2004, the sales volume growth of iPods is in a free fall. In 2005, the iPod sales growth was 287% over 2004 sales; in 2006, the iPods sales growth was only 45% over 2005 sales; and finally, in 2007, the iPods sales growth was a meager 13% over 2006 sales. Of course, the sheer size of iPod sales is a huge number - over 52 million a year - and it is harder to keep up the triple-digit sales growth when you achieve the 800 lb gorilla status. However, iPod market share has remained relatively flat around the 70% mark in the last couple of years.

How can Apple turnaround iPod Sales Growth Engine?

First, we must ask the fundamental question on whether the overall market of MP3 players is big enough and growing fast enough for Apple to grow the iPod sales 20% to 40% a year? If the overall market of Mp3 players is say 90 million in 2008, for Apple to maintain its 70% market share, it must sell 63 million new iPods in 2008. This would amount to a 20% growth in iPod sales from 2007, and a positive turnaround from the 13% sales growth of 2007. For Apple to grow its lead to say 75% in the MP3 market, Apple would need to sell 67.5 million iPods in 2008, or a sales growth of about 28% from 2007. This would be an amazing turnaround. However, if Apple sells anything less than 60 million iPods, a growth of 15% only over 2007, the analysts would begin to wonder on whether iPod is a growth phenomenon anymore. It would mark two years of back to back growth of 13% and 15%, and could mark a real slowdown of iPod sales.

Can Apple drive consumer behavior further to buy more iPods in 2008, and create a bigger market of MP3 players - thereby growing the market share?

What is Apple doing to drive this behavior?

1. Apple has introduced the new iPod touch at lower prices. iPod touch is perhaps the best iPod ever made, and would find existing iPod owners upgrading to it, and also new buyers.

2. Apple has lowered the starting price of iPod Shuffle to only $49 so as to attract first-time iPod buyers.

3. Apple is experimenting with newer business models for the iTunes store (unconfirmed) so as to provide more value and more songs in a new iPod.

4. Apple has introduced the new pink model of iPod nano, and also expanded the partnership with Nike for the gym.

5. Finally, Apple is expected to reduce the iPod prices further when it launches iPhone 2.0 (unconfirmed) or in summer, 2008.

Can Apple provide a free iPod Shuffle to every new buyer of a MAC or Apple TV? In order to get the Shuffle for free, a buyer has to subscribe to an iTunes service for $9.99 or $14.99? Would that drive more sales of iPods?

Or does a higher sales volume really matter to Apple? If Apple can sell iPods at a higher sales price, that would still drive the overall sales revenue growth. And that's what the investors are really looking for. Knowing Apple though, it is not about to relinquish its firm foothold on the MP3 market anytime soon, and it would continue to play both ends of the market.

2008 - Can Apple turnaround the iPod sales growth engine?

Innovation Index Group, Inc. maintains a BUY rating on Apple with a Q4, 2008 price target of $235 to $250.

Download Apple's Innovation Strategy and Learn how Steve Jobs made Apple the #1 Innovative company in the world.

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About Innovation Index Group:

Innovation Index Group, Inc. is a new investment management company focused on systematically identifying, tracking and investing in the most innovative publicly traded companies in North America – collectively called the Innovation Index. We have developed the Innovation Index Fund, LLC as our first vehicle to invest in the Innovation Index. Over the past six years, the Innovation Index has generated a gross average annual return of 40%.

Innovation Index Group, Inc. and Innovation Index Fund LLC are registered California Corporations, and member of the Irvine Chamber of Commerce in Orange County. Further, Innovation Index Fund LLC is a private placement investment partnership organized under the California state regulations.

The Innovation Index Reports:

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007, and returned 174% over the previous five years (2002-2006). This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.*

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.
Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.
*Past Performance Does Not Guarantee Future Results

Countdown to iPhone 2.0 aka iPhone 3G - Apple Inc. (NASDAQ: AAPL)

To buy iPhone 2.5G now or wait until iPhone 2.0 3G arrives? That will be the question facing most iPhone buyers between now through Summer 2008.

Apple Inc. (NASDAQ: AAPL) is one of the Top 20 Innovators of The Innovation Index, and the number one Innovator in the world.

In a story released by Fortune, Apple is getting ready for the launch of the all new iPhone in June 2008 in a similar vein when Apple introduced the iPhone in June 2007. If history is any guide, Apple will have another huge launch of the iPhone 3G.

"The new phone will operate on AT&T's (NYSE: T) faster network giving a big speed boost to mobile Internet users. The new phone will also be packed with more features including GPS navigation." - Fortune

Who are the biggest competitors to the all new iPhone? Sony with it's new Xperia, Garmin with the new Nuvifone, and Research In Motion's (NASDAQ: RIMM) new Blackberry 9000 will give iPhone a run for the money.

Innovation Index Group, Inc. projects sales of 12 million iPhones in 2008.

Download Apple's Innovation Strategy and Learn how Steve Jobs made Apple the #1 Innovative company in the world.

Download Now

Complete story here...

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Apple Inc. (NASDAQ: AAPL) iPhone 2.0 software scores a trifecta with leading developers, enterprise customers and partners

Apple Inc. (NASDAQ: APPL) announced today the beta release of iPhone 2.0 software, and hit a trifecta with leading developers, enterprise customers and partners. Apple is one of the Top 20 Innovators of The Innovation Index, and the number one Innovator in the world. The final release of the iPhone 2.0 software is scheduled for launch in June 2008. What does the iPhone 2.0 software release include?

According to Apple press release, the iPhone 2.0 beta release includes both the iPhone Software Development Kit (SDK) as well as new enterprise features such as support for Microsoft Exchange ActiveSync to provide secure, over-the-air push email, contacts and calendars as well as remote wipe, and the addition of Cisco IPsec VPN for encrypted access to private corporate networks.

The free iPhone SDK along with the iPhone Developer Program provides developers with a rich set of Application Programming Interfaces (APIs) and tools to create innovative applications for iPhone and iPod(R) touch; a bonus is an iPhone Simulator for the Mac(R). The new App Store completes the picture providing a seamless way for developers to wirelessly deliver their applications to iPhone and iPod touch users.

The iPhone SDK provides programming interfaces for Core OS, Core Services, Media and Cocoa Touch technologies through the available APIs. Further, the iPhone SDK will allow developers to create applications that leverage the iPhone's Multi-Touch(TM) user interface, animation technology, large storage, built-in three-axis accelerometer and geographical location technology to deliver truly innovative mobile applications.

Leading developers, enterprise customers and partners are already using the new iPhone in trials, and are getting ready to launch it within their companies. Apple identified the following corporations in the press release:

AOL
"No question the powerful tools and APIs in the iPhone SDK made it easy to develop a feature-rich mobile application for the iPhone," said Kevin Conroy, executive vice president, AOL. "The rapid development cycle for this application was very intuitive, and when you add the App Store, it's an unbeatable combination for development and distribution of mobile applications."
Cisco
"As a result of this collaboration between Cisco and Apple, iPhone users will have seamless and highly secure access to mission critical information as it is needed from anywhere in the world," said Richard Palmer, senior vice president of the Security Technology Group, Cisco Systems (NASDAQ: CSCO). "The connected world is becoming more mobile and collaborative where employees need access to private business information no matter where they are."
Disney
"Apple has really done their homework, addressing issues of security, manageability and integration," said Randy Brooks, senior vice president, IT Strategy and Architecture, The Walt Disney Company. "We currently have hundreds of iPhone users and expect the demand to grow significantly with this release."
Electronic Arts
"The animation technology in the iPhone OS enables us to build awesome games," said John Riccitiello, CEO of Electronic Arts. "I think iPhone consumers are going to be blown away by the games we create for this platform."
Epocrates
"By putting so much computing power into such an elegant mobile device, Apple has opened up tremendous opportunities for application developers," said Kirk Loevner, chairman and CEO, Epocrates, Inc. "The technology and software in the iPhone OS will allow us to create new and innovative applications that help improve patient safety and provide healthcare professionals with an unsurpassed user experience."
Genentech
"I believe the iPhone is a watershed event in mobile computing for corporations," said Todd Pierce, vice president, Corporate Information Technology, Genentech, Inc. "Genentech's pilot with iPhone has shown its potential to be the most useful business mobility tool we've ever used. We now have 3,000 planned for deployment based on how easy and simple it was to integrate iPhone with our corporate email system."
Microsoft
"Licensing Exchange ActiveSync to Apple enables them to build support right into the iPhone for simple, out-of-the-box connectivity with Exchange Server," said Terry Myerson, corporate vice president, Unified Communications Group, Microsoft Corporation (NASDAQ: MSFT), another Top 20 Innovator of The Innovation Index. "Microsoft believes in building open and interoperable products, and Microsoft Exchange Server is no exception."
Nike
"With support for Exchange ActiveSync, this new iPhone release really delivers a true plug-and-play enterprise solution," said Roland Paanakker, vice president and CIO, Nike, Inc. (NYSE: NKE), another Top 20 Innovator of The Innovation Index. "We already had Nike employees using iPhones, and now look forward to deploying more iPhones to more business users."
Salesforce.com
"The opportunity to use the innovative iPhone OS platform to deliver compelling Software-as-a-Service applications to mobile users is empowering to us, and ultimately, our customers," said Marc Benioff, chairman and CEO of Salesforce.com. "They are asking us for new ways to harness the power of Force.com to access their business information on any device regardless of location."
Sega
"The iPhone OS is a robust development platform that will allow Sega to deliver mobile gaming experiences that are truly compelling," said Simon Jeffery, president and COO, Sega of America. "Using the iPhone's accelerometer to power a tilt control feature adds a whole new dimension to Super Monkey Ball, and we can't wait for gamers to try it."

In the 2007 launch of iPhone, Apple had touted Google Inc. (NASDAQ: GOOG), another Top 20 Innovator of The Innovation Index, as one of the key partner. It was interesting to note that Google's support for the new iPhone 2.0 software was missing in today's announcement. A coincidence? Perhaps Google has its own plans for the iPhone and will make a separate announcement.

Steve Jobs, Apple's CEO, was jubilant about this new release, and said: "We're excited about creating a vibrant third party developer community with potentially thousands of native applications for iPhone and iPod touch. iPhone's enterprise features combined with its revolutionary Multi-Touch user interface and advanced software architecture provide the best user experience and the most advanced software platform ever for a mobile device."

Bottomline:

1. Whereas iPhone = "best consumer smartphone" has become a reality within one year, iPhone = "best corporate smartphone" could happen - is it only a matter of time? Or will Research In Motion (NASDAQ: RIMM), another Top 20 Innovator of The Innovation Index, have its say with its fast growing Blackberry smartphones.
2. Would corporations embrace the new SDK, push email, calendar, contacts, remote wipe, security, integration and remote management functionality of iPhone 2.0? How many corporations will convert? What would this do to Blackberry loyalists? Would Apple provide a migration path from Blackberry to iPhone? According to CNBC poll announced today, 84% of the corporate users polled indicated that they would buy an iPhone (how many of the polled already own an iPhone or own an iPod) . One of the CNBC analysts said that this could be a sampling error. Either way, we could be witnessing a a huge nascent demand for the iPhone by the corporations.
3. How many more games will Sega and Electronic Arts create for the iPhone 2.0 platform? Would iPhone displace the handheld gaming market as we know it? Would it really challenge the Nintendo DS and Sony PSP? Can iPhone become the iGamePhone? Only time will tell.

The new iPhone 2.0 innovations have created an abundance of opportunities and possibilities for Apple. How many of these opportunities will Apple convert? Can iPhone really become the defining computing device that everyone wants to have (remember iPod, Apple's best innovation)? Apple definitely challenges RIM, and even the handheld gamers with this innovation. Apple has reiterated the 10 million iPhone target in 2008. However, we believe this is conservative. Apple will sell upwards of 12 million iPhones in 2008. The proof will be in the pudding.

Download Apple's Innovation Strategy and Learn how Steve Jobs made Apple the #1 Innovative company in the world.

Download Now

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Creativity And Innovation in Business eBook

Creativity And Innovation in Business eBook is a 100-page collection of my handpicked 27 Creativity and Innovation best practices, case studies, articles, interviews, and insights on the current state of innovation in business as published on my award-winning Creativity And Innovation Driving Business Blog. The eBook provides real-world examples on how the Top Innovators including Apple, Google, GE, Proctor and Gamble, Yahoo, Toyota, Netflix, BMW, Deloitte, Timex, Frito Lays, Johnson & Johnson and more innovate and grow their business successfully time and again, especially during trying times. Use this eBook as a guide to find and create game-changing innovations, unblock creativity, and make innovation successful at your business.

Your contribution of only $9.99 towards buying the eBook will help support the no-nonsense mission of this blog: to provide "collective experiences, best practices and insights on Creativity and Innovation driving Business, ask questions and obtain answers on generating, managing & growing Creativity and Innovation through proven processes, and report case studies, ideas & stories on Top Innovators of The Innovation Index creating Disruptive Innovations and growing Market Leadership."

Download the Creativity And Innovation in Business eBook Now

Download Apple's Innovation Strategy and Learn how Steve Jobs made Apple the #1 Innovative company in the world.


Download Now

The Innovation Index Reports:
Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
Introducing The Innovation Index - Detailed information about The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

Disclaimer: Innovation Index Group, Inc. invests in Apple and Top Innovators of The Innovation Index.

References:
Apple Press Release

Nike and Apple iPod working out at a Gym near you

In iPod - Apple's Best Innovation, I had talked about the growing and successful partnership between Nike and Apple:
One innovation that Apple created with another Top 20 Innovator of The Innovation Index, Nike, is Nike Plus or Nike + iPod. Apple calls it the "ultimate synthesis of sport and music: a pair of Nike+ shoes, an iPod nano, and the Nike + iPod Sport Kit." Apple Inc. (NASDAQ: AAPL) and Nike, Inc. (NYSE: NKE) are two of the Top 20 Innovators of The Innovation Index.

Nike and Apple announced another key innovation today in their quest to get more customers to use Nike + iPod as they work out in the Gym. The partnership that began with customers using Nike shoes and iPods for running and running clubs is culminating in the Gym. After all, according to Nike, runners have logged in close to 50 million miles on Nike shoes with iPod, making it the world's largest running club.

Nike and Apple are working with major gym equipment manufacturers such as Life Fitness, Precor, Star Trac and Technogym to make their cardio equipment Nike + iPod compatible so health club members can easily track workouts on cardio equipment like treadmills, ellipticals, stationary bikes and stair climbers. Nike + iPod users will simply plug in their iPod nano into the equipment at the start of their workout to automatically record their progress. Users can then connect their iPod with their computer to upload the workout to www.nikeplus.com.
At participating gyms, including 24 Hour Fitness nationwide and Virgin Active Health Clubs internationally, members will soon be able to use Nike + iPod to track their workout and log their data on www.nikeplus.com.
-- Nike + iPod will allow gym members to track progress, set goals and make challenges on www.nikeplus.com.
-- By using the www.nikeplus.com coaching tools, personal trainers now have the ability to help clients chart their progress.
-- When gym users connect their iPod nano to their computer, their workout data is sent to www.nikeplus.com through iTunes. This workout data is converted to "CardioMiles" so that users of cardio equipment can easily set goals and participate in challenges with runners and with users of other cardio equipment.
Nike + Sport Music has also been extremely popular on the iTunes Store (www.itunes.com) offering a wide range of playlists perfectly suited for your favorite sport.

Bottomline:

1. This expansion of the partnership between Nike and Apple will create 5% to 10% more iPod nano sales in 2009 when most gyms would have deployed the new equipment.
2. It remains to be seen on whether Apple will also make this compatible with the latest iPod touch, although this makes strategic sense. Most new iPod buyers will buy iPod touch. If Apple makes the gym equipments compatible with the iPod touch, expect 1% to 5% more sales of iPod touch in 2009.
3. Apple will see modest incremental sale of sport music on the iTunes Store - in the range of 1% to 5%.
4. Nike will see a solid upside in the Nike + iPod shoes in 2009, large enough to impact the topline revenue.

References:
Nike and Apple Press Release

The Innovation Index Reports:
Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

Disclaimer: Innovation Index Group, Inc. invests in Apple and Top Innovators of The Innovation Index.

Why Apple will hit $250 by December 2008?

Apple Inc. (NASDAQ: AAPL) is one of the Top 20 Innovators of The Innovation Index, and the number one innovator.

Here are five reasons on why we believe Apple stock will be worth $250 by December 2008:

1. Apple is grossly undervalued. Apple stock has declined much faster relative to the overall market. Once the market rebounds, Apple stock will also appreciate, albeit exponentially. We believe such a rise in Apple stock will begin in Summer 2008.

2. Apple is on track to sell at least 10 million iPhones in 2008. This we believe is on the low end of the estimate. Once Apple reduces iPhone pricing further (we believe this will happen in Summer 2008), Apple will sell closer to 12 million iPhones in 2008. Apple will also innovate the tap keyboard tool on the iPhone and provide an automatic landscape view to type in emails and text messages. This would create a bigger following for iPhone. Finally, Apple iPhone software will get better for corporate emails.

3. Apple iPod sales will build momentum in Summer 2008 and second half of 2008. With the base iPod shuffle now available for only $49, Apple iPod sales will jettison. The bold drop of $30 in price of the base iPod will create a jump of at least 15% to 20% in iPod sales in 2008 - higher than what the analysts are expecting.

4. Apple MacBook Air will be a runaway winner in laptops in 2008. Apple is poised to increase its growing marketshare in the PC business with the new MacBook Air, and the new MacBook and MacBook Pro models will also help. Before Summer 2008, Apple will reduce the entry prices on all their laptops to create hyper growth in laptop sales. On the other hand, the Mac business will come onto its own in 2008.

5. Apple iTunes Movie Rental business combined with the American Idol music are your dark horses for 2008. Apple will show sustained growth in the movie rental business, and we believe this will begin to show top line difference towards late 2008. Next generation Apple TV and iPod Touch should also help drive more sales iTunes Movie Rental.

Apple stock will be worth at least $150 by Summer 2008, will pick up steam and rise to $200 by Fall 2008, and close out the year over $250. The only caveat is the overall health of the retail economy worldwide.

Disclaimer: Innovation Index Group, Inc. invests in Apple and Top Innovators of The Innovation Index.

Creativity And Innovation in Business eBook

Creativity And Innovation in Business eBook is a 212-page collection of my handpicked 56 Creativity and Innovation best practices, case studies, articles, interviews, and insights on the current state of innovation in business as published on my award-winning Creativity And Innovation Driving Business Blog. The eBook provides real-world examples on how the Top Innovators including Apple, Google, GE, Proctor and Gamble, Yahoo, Toyota, Netflix, BMW, Deloitte, Timex, Frito Lays, Johnson & Johnson, Tata, BMW and more innovate and grow their business successfully time and again, especially during trying times. Use this eBook as a guide to find and create game-changing innovations, unblock creativity, and make innovation successful at your business.

Your contribution of only $9.99 towards buying the eBook will help support the no-nonsense mission of this blog: to provide collective experiences, best practices and insights on Creativity and Innovation driving Business, ask questions and obtain answers on generating, managing & growing Creativity and Innovation through proven processes, and report case studies, ideas & stories on Top Innovators of The Innovation Index creating Disruptive Innovations and growing Market Leadership."

Download the Creativity And Innovation in Business eBook Now

Table of Contents of Creativity And Innovation in Business eBook


TABLE OF CONTENTS

Chapter 1 - The Top 50 Innovative Companies In The World
Chapter 2 - The Innovation Index - Top 20 Innovators
Chapter 3 - Measuring Business Innovation Success - Key Benchmarks
Chapter 4 - Failures And Stumbles Driving Innovation - Five Takeaways
Chapter 5 - Blocking Creativity And Innovation - Nine Processes
Chapter 6 - Six Ways To Find Innovation - "See with new eyes"
Chapter 7 - Five Principles For Successful Business Innovation
Chapter 8 - Is Innovation Cyclical? - Four Common Blunders
Chapter 9 - Can Leadership Create Innovation? - Ten Leadership Ideas
Chapter 10 - Top Ten Creative Leadership Traits - Be The Leader and Innovator
Chapter 11 - Creating Team Innovation - Seven Characteristics
Chapter 12 - Creating Team Innovation - Effective Teams Examples
Chapter 13 - Creating Team Innovation - Ten Principles To Unleash Innovation
Chapter 14 - The Future Of Management, Creativity And Innovation - Upend Business Models
Chapter 15 - How Much Creativity Is Enough?
Chapter 16 - Co-Creation Driving Innovation At Top Innovators
Chapter 17 - Marketing Innovation Creating Market Leadership
Chapter 18 - Consumer Innovation Best Practices - Six Steps To Lead Innovation
Chapter 19 - The Innovation Gap - Disruptive Innovation versus Sustaining Innovation
Chapter 20 - Are Children More Creative Than Adults?
Chapter 21 - Questions Lead To Creativity, Answers Lead To Innovation
Chapter 22 - Expanding Your Business Innovation Capacity
Chapter 23 - Innovation Insights And Wisdom From Greatest Innovators
Chapter 24 - Turn Complaints Into Solutions, Innovations And Success
Chapter 25 - Why Some Ideas Survive And Others Die
Chapter 26 - Ten Answers For Driving Innovation And Growth At World Class Innovators
Chapter 27 - Strategic Innovation At Deloitte - The "Apple" Of Services Innovation
Chapter 28 - Toyota's Innovation Factory
Chapter 29 - Ipod - Apple's Best Innovation
Chapter 30 - Apple Iphone Rising - Top Ten Innovations
Chapter 31 - Google Versus Yahoo - A Tale Of Two Cities
Chapter 32 - Youtube - $1.65 Billion Innovation And Counting
Chapter 33 - Blockbuster Versus Netflix - Winner Takes All?
Chapter 34 - GE And P&G - Innovations Driving Growth & Six Growth Principles
Chapter 35 - Can Dell Turnaround Dell? Seven Thoughts For Turnaround
Chapter 36 - Innovations Brewing At Starbucks ? Five Takeaways
Chapter 37 - Southwest Airlines Flying High With Ten Innovations
Chapter 38 - Innovations At Microsoft - Four Business Pillars
Chapter 39 - Direct Marketing And Direct Mail Innovation At USPS
Chapter 40 - Disruptor Zune Versus Innovator Ipod
Chapter 41 - 100% Electric Ultra Fast Innovation - Tesla
Chapter 42 - Nike Versus Adidas - The Innovation Game Is On
Chapter 43 - People Innovation - We Think Culture Of Innovation
Chapter 44 - Intel - Exponential Innovations
Chapter 45 - Five Innovations In Software Industry - Intuit Case Study
Chapter 46 - Google Versus Microsoft - The Enterprise Battle Heats Up!
Chapter 47 - Launch Of Tata Nano - A Watershed Moment in Indian Autos
Chapter 48 - How Can GM Turnaround The Business? Is Innovation The Answer
Chapter 49 - Doubleclick A Smart Buy For Google
Chapter 50 - Microsoft Walk-Off Home Run With Aquantive
Chapter 51 - IBM's $5 Billion Cognos Acquisition
Chapter 52 - Top Acquisitions By The Top Innovators
Chapter 53 - Will Yahoo merge with Microsoft?
Chapter 54 - Innovation And Stock Performance Correlation
Chapter 55 - The Innovation Index Annual Report
Chapter 56 - $1 Billion Or The Future

Download the Creativity And Innovation in Business eBook Now

I am forever grateful to Creativity and Innovation Leaders, Innovators and Bloggers for helping me drive the readership on my blog, and I am looking forward to my blog readers and fellow blog writers downloading and referring this relevant resource on Creativity And Innovation in Business.

Good Luck Innovating!

Sincere regards,
Sanjay Dalal

Download the Creativity And Innovation in Business eBook Now

References:
http://creativityandinnovation.blogspot.com/2008/02/creativity-and-innovation-in-business.html

Apple iPod - Apple's Best Innovation

Apple Inc. (NASDAQ: AAPL) is the World's Number One Innovative Company, three years in a row according to BusinessWeek's 2007 list of the world's 50 most innovative companies. BusinessWeek proclaims "their creativity goes beyond products to rewiring themselves." BusinessWeek ranks the innovative companies based on the responses received from over 1,000 global executives of the largest global corporations; survey questions include innovation metrics on process, product and business model innovations.

Apple is one of the Top 20 Innovators of The Innovation Index.

According to BusinessWeek, innovation today is “much more than new products.” Innovation is also “reinventing business processes and building entirely new markets that meet untapped customer needs.” The ubiquity of the Internet and globalization of the business expand generation of new ideas. Innovation is then “selecting and executing the right ideas and bringing them to market in record time.”

iPod driving Apple to Number One Innovative Company
iPod, powered by Apple, introduced in 2001 and masterminded by Steve Jobs, combines outstanding design, easy-to-use interface, superb performance, and an experience like no other. Apple assumed the world’s number one innovative company position and held it again in 2006 in large part due to the exponential growth of iPod – aptly called the iPod phenomenon. Just ask the tens of millions of fans walking, driving, jogging, exercising, chatting, playing, humming, relaxing, singing, rocking, screaming, and above all enjoying their daily iPod experience. Imagine if they were to miss their iPod for a day, or even for a few hours. iPod is oxygen – pure and simple – the source of life for these millions of fans. Not to mention iPod has become associated with personal status and symbol that speaks of cool, hip, polished, and different. What began as a new product quickly became a revolution. iPod is by far the best commercial innovation the world has seen in the last few years, and perhaps is the best innovation from Apple dating back through its storied history of innovation firsts. Apple one-upped the iPod design innovation by creating new innovations in business model with the launch of iTunes online service enabled by strategic partnerships with the Music, TV and Movie industry.

A Glorious History of Innovations
Apple has created great innovations beginning with the first Apple computer in 1976, Graphical User Interface (GUI) along with the popular Macintosh introduced in 1984, the reliable PowerBook introduced in 1991, the PDA named Newton that created a new industry of handhelds in 1993, the new millennium revolution beginning with the iMac in 1998, the new iBook hot on the heels of the iMac in 1999, the iPod that put an oomph in the MP3 players and essentially changed music as we know it in 2001, iTunes software and Music store service that changed the Music industry business model and made it easy for fans to listen and buy music piecemealed in 2003, iPod mini, iPod (U2 Special Edition) and iPod photo in 2004, iPod shuffle, iPod nano, iPod with Video and Mac Mini in 2005, the new iMac with Intel core Duo processors and the new MacBook with Intel processors in 2006.

Five years of iPod Innovations

2006 marks five years of iPod innovations. Apple's Hardware engineering chief Jon Rubinstein assembled a team of engineers to design and build the first iPod in less than a year, and it was unveiled by CEO Steve Jobs on October 23, 2001 as a Mac-compatible product with a 5GB hard drive that put "1,000 songs in your pocket." Since then, Apple has introduced fourteen different models of iPods in various colors, displaying photos, downloading and playing videos, branded and signed by U2, with numerous forms and shapes, different capacities for holding songs, pictures and videos, with connectors, next generation models with better wheels, and more. For instance, the new iPod video introduced in 2005 was the first iPod that could download and playback full-motion video with a larger color screen and better display resolution – an innovative package under $300 for the base model. Or the innovation in the wheel that is akin to the driving wheel on a car – from an original mechanical scroll wheel to the current touch-sensitive click wheel. According to PC Magazine, “In the years since (2001), the iPod's market share has grown tremendously, iPods have shrunk in size, Apple's iTunes Music Store has taken the lion's share of legal digital music downloads, and the iPod accessory market has exploded and taken on a life of its own. All this has made the iPod as synonymous with "MP3 player" as Kleenex is with facial tissues.”

The love for iPod

Why do people love iPod perhaps more than their spouse, boyfriend, girlfriend or children? It has to do with the simple yet elegant design that makes it extremely easy-to-use (Toyota’s Innovation Factory), exceptional sound, video and imagery, and the amazing experience. The flexibility provided by the iTunes software and service that allows you to try and download any music and video with the click of a button from any computer or the Internet to your iPod. And all the available accessories from wireless headsets, remote controls, beautiful skins, acoustic speakers, to connectors that can literally take your iPod music and videos anywhere – inside the room, in the car, in the office, on the plane, even while taking shower. iPod fans can’t live without their iPods literally. And the search is still on for a music fan that has switched from an iPod to another MP3 player. And there is that small sharing thing: hard-core iPod fans don’t like to share their iPods with others. BYOiPod. Bring your own iPod.

iPod’s Topline

In the quarter ending September 2006, Apple sold 8.7 million new iPods, generating $1.5 Billion in sales, a third of Apple’s total quarterly sales. By the end of 2006, there will be over 67 million iPods in the world; Apple is poised to eclipse the 100 million iPods mark in 2007. iPod has revived Apple from the depths in 2001 when annual sales had plummeted to $5.36 Billion and Apple was losing money. Apple’s shares were under $10. Compare this to 2005, when Apple had sales of $13.9 Billion, and profits of over $1 Billion. Apple’s shares have climbed sixteen folds. The Apple machine is kicking into high gear, in large part due to iPod Innovation Revolution. iPod’s halo effect is even evident in the latest quarter when Apple sold more Macs than it has ever sold before: 1.61 million.

In 2007, Apple sold 52.7 million iPods, an increase of over 15% from the 45 million iPods sold in 2006. In the latest quarter ending December 2007, Apple sold 22.1 million iPods representing five percent unit growth and 17 percent revenue growth over the year-ago quarter. Can Apple grow iPods sales to over 20% in 2008? What strategy would Apple employ to lure more iPods buyers in 2008?

The next generation iPods

What innovations can be expected from iPod? Can Apple create jazzier, easier, feature-rich iPods?

How about iPods that beam songs and videos to each other, to a computer or even to a TV? Or iPods that deliver Presentations and Live Videos in team meetings. iPods with GPS Navigation system. iPods that combine as cell phones. iPods that can receive satellite radios. What innovations will Apple bring out next? Steve Jobs indicated in the latest quarterly earnings press release that 2007 will be an exciting year full of great new products. The world will be watching.

2008 Fast Forward

Apple Inc. added new models of iPod(R) touch after the success of iPod touch launched in 2007. The new models have "double the memory, doubling the amount of music, photos and videos that customers can carry with them wherever they go."

iPod touch now comes in a 32GB model for $499, joining the 16GB model for $399 and the 8GB model for $299.

iPod touch features Apple's revolutionary Multi-Touch(TM) user interface and pioneering software that allows users to find and enjoy all their music, videos, photos and more with just a touch of their finger. iPod touch models include the ability to automatically find your location using the new Maps application*; create Web Clips for your favorite websites; customize your home screen and watch movies from the new iTunes(R) Movie Rentals. iPod touch features the world's most advanced mobile web browser in the world with Safari(TM) and great mobile applications including Mail, Maps, Stocks, Weather and Notes.

Apple had an outstanding 2007 - the stock price and market cap more than doubled and finished upwards of 130% owing to such game changing innovations including the new iPhone, the new iPod Touch, and the all new Mac OS – Leopard, and on the strengths of the growing iPod and Mac business.

Retail research firm NPD Group says Apple's iPods still maintain a lock on the top spot in U.S. sales of digital music and media players, with as much as 75% of the market.

Nike + iPod

One innovation that Apple created with another Top 20 Innovator of The Innovation Index, NIKE, Inc. (NYSE: NKE) is Nike Plus. Apple calls it the "ultimate synthesis of sport and music: a pair of Nike+ shoes, an iPod nano, and the Nike + iPod Sport Kit."

Nike+ shoes feature a built-in pocket under the insole specially engineered for the Nike + iPod sensor. iPod nano syncs a runner's complete workout data with both iTunes and nikeplus.com. The Nike + iPod Sport Kit allows an athlete's Nike+ shoe to talk to the iPod nano. The sensor uses a sensitive accelerometer to measure the activity, then wirelessly transfers this data to the receiver on your iPod nano.

Nike + iPod receiver fits securely into the Dock connector on the bottom of the iPod nano. Wirelessly connected to the sensor in your Nike+ shoe, it receives up-to-the-second information as you run.

As one runs, iPod nano tells you your time, distance, pace, and calories burned via voice feedback that adjusts music volume as it plays. In addition to progress reports, voice feedback congratulates you when you’ve reached a personal best — your fastest pace, longest distance and time, or most calories burned. Besides the voice feedback, iPod nano plays the workout songs you choose, or have the iPod nano choose it for you based on your workout. You can also choose to play PowerSong.

Nike+ has created a growing new business for Nike, and Nike even touts this in their earnings reports and press. Is Apple planning to make more deals with more athletic companies besides Nike for the iPod? We will find out in 2008.

Apple iPod - Apple's Best Innovation.

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References:
BusinessWeek
PC Magazine
Apple-history.com
Apple.com
Wikipedia

Originally published October 23, 2006.
Updated February 09, 2008

The Innovation Index Reports: Introducing The Innovation Index Fund - Invest into The Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance
The Innovation Index gallops to 56% - Quarterly Report - Q3, 2007

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007, and returned 174% over the previous five years (2002-2006). This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.