News 

July
In a move unprecedented in Apple's history, the company announces that the anglepoise iMac G4 has been discontinued and there will be a new model in September. 'We planned to have our next generation iMac ready by the time the inventory of current iMacs runs out in the next few weeks, but our planning was obviously less than perfect,' it admits.

'The flat-panel iMac has its charms, in fact it is a truly beautiful machine, but unfortunately that has not been enough. And it does look a bit like a lamp. We keenly await its successor,' noted MacUser.

Sony at last unveils its 'iPod killer' - an all-too-often used label that we hope we will not be hearing in 2005 - the snappily-named Network Walkman NW-HD1. However, as is Sony's want, the machine only supports the proprietary ATRAC format, a policy which the company will abandon later in the year. Sony claims the NW can store 13,000 songs on its 20GB hard drive which it compares to the 5,000 tracks Apple says the 20GB iPod can hold.

'We're disappointed that Sony, which is new to this market, has decided to make their first impression by attempting to mislead the press and customers,' an Apple statement said, claiming that Sony's calculations are based on files with greater compression and therefore of an inferior quality.

Quark finally gives in to user demands and allows them to install the £1,000 QuarkXPress application on two machines if the users has both a desktop and laptop.

Apple announces that iPod mini will ship outside the US on 24 July; the UK price is set at £179, £20 cheaper than was quoted when the mini was first launched in January because of a stronger pound.

It is timely news; the Euro versions of the iTunes Music Store have proved a big hit, selling 1.5 million songs in two weeks. Nonetheless it is a mere drop in the ocean of the 100 million tracks Apple announces it has sold since the store first opened in April 2003.

Music is playing an increasing central role in Apple's fortunes. The company's latest quarterly results show that it sold almost as many iPods, 860,000, as it did Macs, 876,00. Profits rose from $19mn to $61mn on the back of an 'incredible' - Steve Jobs - 162 per cent rise in music revenues.

That should rise even further with the unveiling of the fourth generation iPod, with a 50 percent increase in battery life and $100 price cuts. It will even, for the time being anyway, be able to play songs from Real Networks online music store. Real releases Harmony software that converts the Helix rights management system used by its downloads to a system that iPod understands.

'Thanks to Harmony, consumers don't have to worry about technology when buying music. Now anyone can buy music, move it to their favourite portable device, and it will just work,' says Real CEO Rob Glaser.

Although some commentators believe that this could drive up iPod sales, Apple is far from enthusiastic.

''We are stunned that RealNetworks has adopted the tactics and ethics of a hacker to break into the iPod, and we are investigating the implications of their actions under the DMCA (the US Digital Millenium Copyright Act) and other laws. We strongly caution Real and their customers that when we update our iPod software from time to time it is highly likely that Real's Harmony technology will cease to work with current and future iPod.'

Real insists that, 'Compatibility, choice and quality are critically important to consumers and Harmony provides all of these'. Unless you own a Mac or live outside the US, that is.

The spat does not discourage one analyst from predicting that Apple could become the 'Microsoft of music', which could be a mixed blessing.

August
Steve Jobs has had a cancer tumour removed. The Apple CEO explained in an email to staff that, 'This weekend I underwent a successful surgery to remove a cancerous tumour from my pancreas. I had a very rare form of pancreatic cancer called an islet cell

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neuroendocrine tumour, which represents about one per cent of the total cases of pancreatic cancer diagnosed each year, and can be cured by surgical removal if diagnosed in time (mine was)' Jobs then thanked God that he had not contracted the more common and more lethal form of pancreatic cancer, adenocarcinoma, sufferers of which have a life expectancy of about a year from diagnosis.

Toshiba begins production of a 60GB version of the hard drives used in the iPod. Apple remains tight-lipped on any plans to use the discs in a future model.

The French arm of Virgin decides that the only way to tackle the iPod's dominance is through the courts and files a complaint with the French Competition Council. It alleges that Apple France has wrongfully refused to license the Fairplay digital rights management technology which prevents iPods from playing downloads from music stores other than iTunes. Apple, as ever in legal matters, declines to comment.

Roxio announces that it is selling its software division, including the hugley successful Toast application, to concentrate solely on its Napster online music store. Purchaser Sonic Solution reassures Mac users that it will not toast Toast.

Napster's main rival, Apple, boasts that the US incarnation of the iTunes Music Store now has one million songs in its catalogue.

Real begins the latest stage of its desperate attempt to grab some share of the downloads market from Apple, by selling tracks at a loss-making 49 cents for a limited period. The campaign has some success, shifting a million songs in a week. A campaigning website is less successful, as Apple fans bombard an online petition calling for Apple to open up the iPod with 'an overwhelming amount of negative comments'. The petition stays, but the comments section is removed. Mac users respond by setting up a petition calling for Real to drop its anti-Apple campaign. Real is not the only company to have been rebuffed by Apple; Rolling Stone reports that Microsoft failed to persuade Apple to grant iPod support for its forthcoming US music store.

The rumour mill goes into overdrive as Apple's iPod division advertises for or two hardware engineers with experience in Wi-Fi and Bluetooth.

Paris in August means Apple Expo. In the absence of recuperating Steve Jobs, VP Philip Schiller unveils the 2in thick iMac g5 to rapturous applause. MacUser's man on the spot reports: 'In creating the new design, Apple spent time redefining "the soul of the iMac", explaining that it should feature all-in-one elegance, extreme simplicity, be perfect for iLife, and should feature innovative design. If nothing else, they've nailed that last one. The new iMac is the thinnest desktop computer in the world, and looks stunning.'

September
The iMac receives a bit if a mixed reception, chiefly because Wi-Fi is not included as standard, but not on Wall Street, which sends Apple's share price to a four-year high of $35.99.

Microsoft finally unveils its online music offering in the US, only 16 months later than iTMS began trading. Apple reacts less than charitably: 'Compared to iTunes, Microsoft's music store currently offers only half the songs and is missing many features, but its biggest problem may be that its downloaded songs do not play on iPod, iPod mini, or the Apple iPod from HP - the world's most popular digital music players with over 50 per cent market share.'

It subsequently emerges that Apple's position could have been even stronger had Sony accepted an offer to partner in iTMS. Sony declined, preferring to open its own store, Sony Connect, instead.

Quark finally admits that its public image has become somewhat tarnished and commits itself to 'reassessing the way we do business and the quality and effectiveness of the solutions we develop to help our customers'. Whether that includes re-examining the price of QuarkXPress remains to be seen.

A recovered Steve Jobs is back at work, attending occasional meetings before returning full-time at the end of the month. Doubtless his inbox will contain a link to an interview with his opposite number at Real, Rob Glaser, who says that he has plans in place should Apple disable Harmony on iPods. It will also contain the latest notes on the legal dispute with Apple Corps who are apparently asking $15mn for the rights to sell Beatles songs as downloads.

He will also be back to oversee the introduction of Logic Pro 7 and its baby brother Logic Express and to update the capacity of his iDisk as Apple increases .Mac's online allowance to 250MB.