What's in a Name? Pocket PCs Rule, But MP3 May Lose in Moniker Mess

Brandweek, Jan 17, 2000 by Todd Wasserman

Mixed news earlier this month for lovers of techno-jargon: On the one hand, the somewhat confusing term "Palm-size PC," has been excised in favor of "Pocket PC" to refer to handheld computers based on Microsoft's Windows CE platform. On the other, the catchy moniker "MP3 Player" is now being rejected by big-name manufacturers. In its stead are generic terms like "digital audio player," ignoring the fact that CD players are digital audio players, too.

Microsoft's decision, announced this month at the 2000 International Consumer Electronics Show in Las Vegas, was driven by slack sales and a name too derivative of rival Palm Computing's platform. The new term, however, ignores the fact that few Windows CE-based devices actually fit in ones pocket.

The industry's decision on MP3 players may have stemmed in part from Microsoft, too, which has been pushing alternative digital audio software, called Windows Media Audio, since last June. A Microsoft product manager who requested anonymity said the company is "thrilled" that MP3 may lose its Kleenex-like stature, but added there was no plan to encourage other manufacturers to stop using the term.

Microsoft's not the only rival to the San Diego, Calif.-based MP3. Sony is pushing its own alternative format, called Adaptive Transform Acoustic Coding 3 (Atrac3) Sony will highlight its Memory Stick Walkman later this year under a campaign for so-called "personal networks" of mobile audio applications along with one for its digital imaging line, said T. Scott Edwards, Sony's svp-marketing communications. No budget has been set for the two efforts, but a September campaign for Sony's TV and home audio products was backed by $20 million. Young & Rubicam, N.Y., handles.

Still, the name change is confusing. "I have to keep telling myself not to call it MP3," said Mark Knox, Samsung's senior digital products manager. Knox likes the term, "silicon audio." Samsung dubbed its own multi-format players as "Yepp" devices in the first leg of its $150 million campaign, via Arnell Group, N.Y. The next phase, likely to hit in the late first quarter, may highlight some new Samsung products, like its "all-in-one" Extiva DVD player/game player and its 43-inch HDTV, Knox said.

The rush for major players to bring digital audio devices to market is nothing compared to an industry-wide effort to dress every CE device in translucent, brightly colored plastic that bears more than a passing resemblance to Apple's hugely successful iMac line.

Apple had sued computer makers like Emachines and Future Power/Daewoo for imitating iMac's distinctive look and feel, but that hasn't stopped consumer electronics firms from using key iMac features for TVs, VCRs, radios, even calculators.

"We think this will be a year of color," said Minoru Takahashi, director of sales/administration for Casio's audio division. Casio will offer $49 boom boxes this spring that forgo titanium silver for translucent plastic.

Rival Emerson, meanwhile, re-launched its latest line in such plastic colors as "Luscious Lime, Blazing Blueberry, Radical Raspberry and Groovy Grape." No Amazing Apple, though. Emerson isn't planning any ads, but enlisted Fairfield, N.J., design firm Cody to create innovative boxes that feature pictures of sliced fruit. "We wanted to break ranks with typical consumer electronics packaging, which is bullet points and features." said Jeff Jackson, Cody's creative director.

Zenith, which recently emerged from bankruptcy protection and Thomson brand RCA displayed kids TVs in similarly groovy colors, while Konka, a mainland Chinese firm expected to launch a big-budget campaign in the U.S. this year, showed a TV that on first glance could be mistaken for an iMac. All three are aiming for Gen Y audiences.

Not to be outdone, Samsung was showing a translucent line of "Lollipop VCRs" in clear-plastic green, blue and pink, with Lollipop TVs likely to follow And Philips is planning an April release of portable CD players in see-through plastic.

Why the rush to co-opt the iMac's industrial design? Retailers say devices sold as plug-ins to iMacs that sport the same look and feel have been flying off store shelves. Vivitar, for one, sold more than one-million colorful clear-plastic digital cameras in less than a year, and has now added new colors and migrated the design to its 35mm line.

But, as Jack Wahrman, manager of J&R Computer World's retail Web site noted, some colors sell better than others.

"Blueberry's a big hit," he said. "Nobody's buying tangerine that much."

Another surprise hit of the holiday season: high-definition TVs, generally priced in the $5,000 range, which some thought would limit appeal. In this roaring economy that's no barrier and many retailers found their stock sold out quickly HDTV makers are taking a chicken-and-egg marketing tack, augmenting a tight supply (fewer than 20 hours a week) of HDTV programming to stimulate further demand.

Panasonic is underwriting a high-definition broadcast of the Super Bowl, ABC viewers will be told of the broadcast early in the game, said William Mannion, gm of Panasonic's television and network systems division. Thomson, which owns the RCA brand, will underwrite the HD broadcast of the NCAA Final Four matchup, said Tom Wardrop, Thomson's director of advertising.