Final Refrain for iPod as Apple Stops Production

In this Feb. 5, 2021 photo, an Apple store employee is shown in New York. (AP Photo/Mark Lennihan)
In this Feb. 5, 2021 photo, an Apple store employee is shown in New York. (AP Photo/Mark Lennihan)
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Final Refrain for iPod as Apple Stops Production

In this Feb. 5, 2021 photo, an Apple store employee is shown in New York. (AP Photo/Mark Lennihan)
In this Feb. 5, 2021 photo, an Apple store employee is shown in New York. (AP Photo/Mark Lennihan)

Apple on Tuesday put out word it is no longer making iPods, the trend-setting MP3 players that transformed how people get music and gave rise to the iPhone.

Late Apple co-founder Steve Jobs introduced the devices nearly 21 years ago with his legendary showmanship flare, and the small, easy to operate players helped the company revolutionize how music was sold.

It packed "a mind-blowing 1,000 songs" the company said at the time, and together with Apple's iTunes shop established a new distribution model for the music industry.

Buying complete albums on vinyl gave way to paying 99 cents a piece for selected digital songs, AFP said.

Industry trackers and California-based Apple itself have long acknowledged that the do-it-all iPhone would eat away at sales of one-trick devices such as iPod MP3 players.

The trend toward streaming music services, including one by Apple, has made devices designed just for carrying digital tunes around less enticing for consumers.

Apple said in a blog post that the current generation of iPods will only be available as long as current supplies last.

"Music has always been part of our core at Apple, and bringing it to hundreds of millions of users in the way iPod did impacted more than just the music industry," said Apple senior vice president of Worldwide Marketing Greg Joswiak.

"It also redefined how music is discovered, listened to, and shared."

Joswiak said that the "spirit of iPod" lives on in its lineup of products including iPhone, iPad, Apple TV, and its HomePod smart speaker.

"Since its introduction over 20 years ago, iPod has captivated users all over the world who love the ability to take their music with them on the go," Apple said in a blog post.

"Today, the experience of taking one’s music library out into the world has been integrated across Apple’s product line - from iPhone and Apple Watch to iPad and Mac."

In addition, the Apple Music subscription service provides streaming access to more than 90 million songs, the Silicon Valley giant said.

The iPod endured despite analyst worries that the release of the iPhone in 2007 would destroy demand, since the smartphones provided much more than just digital music.



Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
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Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP

Google-parent Alphabet on Wednesday reported quarterly profits that topped expectations, saying artificial intelligence has boosted every part of its business.

Alphabet's second-quarter profit of $28.2 billion -- on $96.4 billion in revenue -- came with word that the tech giant will spend $10 billion more than it previously planned this year on capital expenditures, as it invests to meet growing demand for cloud services.

"We had a standout quarter, with robust growth across the company," said Alphabet chief executive Sundar Pichai.

"AI is positively impacting every part of the business, driving strong momentum."

Revenue from search grew double digits in the quarter, with features such as AI Overviews and the recently launched AI mode "performing well," according to Pichai.

Ad revenue at YouTube continues to grow along with the video platform's subscription services, Alphabet reported.

Alphabet's cloud computing business is on pace to bring in $50 billion over the course of the year, according to the company.

"With this strong and growing demand for our cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead," Pichai said.

Alphabet shares were up nearly 2 percent in after-market trades that followed the release of the earnings figures.

Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence and whether AI-generated summaries of search results will translate into fewer opportunities to serve up money-making ads.

The internet giant is dabbling with ads in its new AI Mode for online search, a strategic move to fend off competition from ChatGPT while adapting its advertising business for an AI age.

The integration of advertising has been a key question accompanying the rise of generative AI chatbots, which have largely avoided interrupting the user experience with marketing messages.

However, advertising remains Google's financial bedrock.

"Google is doing well despite tariff headwinds and rising AI competition in search," said eMarketer principal analyst Yory Wurmser.

"It's also successfully monetizing AI Overviews and AI Mode, a good sign for the future."

Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent.

Antitrust battles

Meanwhile the online ad business that generates the cash Google invests in its future could be neutered due to a defeat in a US antitrust case.

During the summer of 2024, Google was found guilty of illegal practices to establish and maintain its monopoly in online search by a federal judge in Washington.

The Justice Department is now demanding remedies that could transform the digital landscape: Google's divestiture from its Chrome browser and a ban on entering exclusivity agreements with smartphone manufacturers to install the search engine by default.

District Judge Amit Mehta is considering "remedies" in a decision expected in the coming days or weeks.

In another legal battle, a different US judge ruled this year that Google wielded monopoly power in the online ad technology market, another legal blow that could rattle the tech giant's revenue engine.

District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers.

Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed.

Google said it is appealing both rulings.