Apple vPod Concept Hasn't Ripened Yet

This column was originally published on RealMoney on Aug. 31 at 11:08 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.

The vPod (what I'm calling the video iPod concept) and iShows: I first wrote about the concept of these two new products from Apple(AAPL) more than a year ago. Now the mainstream press, along with Wall Street, is fully aware that Apple will head in this direction with its consumer electronics line at some point. Apple eventually will roll out video-capable iPod-like devices capable of playing shows, movies and music videos that will be available for purchase at a Web-based store such as iTunes.

But the operative phrase in that last paragraph is "at some point," and that point is very unlikely to be anytime this year or early next. Not that Apple should be in any rush to get the product out -- on the contrary, even.

Anybody who has ever heard of Apple Computer knows that the iPod changed the course of this company forever. Apple was a sleepy ol' computer vendor in danger of falling to 1% market share of the PC business before it veered into the portable MP3 player industry. Let me rephrase that: before the company recreated the portable MP3 player industry.

The iPod has caught the world's fancy, and Apple has sold more than 21 million units, with more than 80% market share. Now, anytime Apple schedules an appearance at a tech conference or even just a press conference, the tech world goes crazy speculating that another new major product release is coming from the world's reigning most-innovative company.

Last week, word hit that Apple has scheduled a "special event" for Sept. 7, and right on time, the rumor mill around new product introductions kicked in. Initially, many analysts were sure this would be the video iPod announcement. As more information has come out since the event was scheduled, those video-product rumors have died down.

Next week's announcement is probably going to be just the formal rollout of the iTunes-enabled Motorola phone, which will run on Cingular's wireless services. That product itself is going to be great, and if I hadn't just bought a brand-new cell phone from Verizon last month, I would be first in line to purchase the new Motorola iTunes phone.