Research In Motion and Nike continue torrid growth, show no slowdown

NIKE, Inc. (NYSE: NKE) and Research In Motion Limited (NASDAQ: RIMM) are 2 of the Top 20 Innovators of The Innovation Index.

Research In Motion Quarterly Revenue rises 107%, Quarterly Net Income zooms 116% year over year.

RIM Revenue for the first quarter of fiscal 2009 was $2.24 billion, up 19% from $1.88 billion in the previous quarter and up 107% from $1.08 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 82% for devices, 13% for service, 3% for software and 2% for other revenue. During the quarter, RIM shipped approximately 5.4 million devices.

Approximately 2.3 million net new BlackBerry(R) subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was over 16 million.

Net income for the quarter was $482.5 million, or $0.84 per share diluted, compared with net income of $412.5 million, or $0.72 per share diluted, in the prior quarter and net income of $223.2 million, or $0.39 per share diluted, in the same quarter last year.

Revenue for the second quarter of fiscal 2009 ending August 30, 2008 is expected to be in the range of $2.55-$2.65 billion. Net subscriber account additions in the second quarter are expected to be approximately 2.6 million. Earnings per share for the second quarter are expected to be in the range of $0.84-$0.89 per share diluted.

Nike delivers yet again, and stays with the high growth trajectory.

For the fiscal year, Nike revenues grew 14 percent to $18.6 billion, compared to $16.3 billion last year. Net income increased 26 percent to $1.9 billion, compared to $1.5 billion last year, and diluted earnings per share increased 28 percent to $3.74 versus $2.93 last year. For the fourth quarter, revenues increased 16 percent to $5.1 billion, compared to $4.4 billion for the same period last year. Fourth quarter net income increased 12 percent to $490.5 million, compared to $437.9 million in the prior year, and diluted earnings per share increased 14 percent to $0.98, versus $0.86 last year.

Future Orders

The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from June 2008 through November 2008, totaling $8.8 billion, 11 percent higher than such orders reported for the same period last year.

Bottomline:

Both RIM and Nike are showing no slowdown from the U.S. economy. Both provided cautious future earnings outlook to account for potential slowdown in their U.S. earnings; however, the Wall Street analysts reacted to this realistic outlook gravely, and posted negative sentiment about the same. Both companies are still growing strong, and even their outlook shows solid top line revenue growth. RIM in particular slightly lowered the future net earnings owing to higher marketing costs attributed to launch of new products. Nothing unusual. However, the analysts are always seeking the smallest sign of weakness, and blowing it out of proportion. Nike also talked about weaker growth in the U.S. markets. And the same thing. Analysts reacted negatively to this. And their negative comments caused these stocks to go in a free fall, and even helped the market go down (it did not help that oil hit $140 a barrel). Both innovators are showing strong growth, and are not slowing down any time soon. Perhaps these Wall Street analysts need to get real, and revise their estimates in line with the U.S. economy and its impact on the global economy. I applaud both RIM and Nike management to provide conservative outlook. In time, the analysts and the investors will realize that both these companies are real gems, and will repeat the strong revenue and earnings growth. For now, the smart investor will get ample buying opportunity for these two top innovators.

Innovation Index Group has long-term BUY recommendations on the Top 20 Innovators of The Innovation Index, including RIM and Nike.

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 would have generated a gross average annual return of 40% based on historical model.* The Innovation Index returned 66% in 2007*, and the Innovation Index Fund Manager is up 10% in 2008.*

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 an investment management company organized under the California state regulation, and is registered with Department of Corporations and SEC Regulation D.

The Innovation Index Reports:

Learn about 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 based on performance model, and would have returned 174% over the previous five years (2002-2006) based on historical model*. 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

Nike Delivers Outstanding 3Q Results - Growth In Innovative Products, Diversified Portfolio, Global Sales and Futures Orders

Nike Inc. (NYSE: NKE) delivered solid third quarter results, beating the high-end analyst expectations on both earnings and revenue. Sales revenue grew 16 percent to $4.5 billion, compared to $3.9 billion for the same period last year; earnings increased 35 percent to 92 cents per share versus 68 cents last year; net income rose 32 percent to $463.8 million compared to $350.8 million last year. Nike shares were up more than 4 percent in after hours.

Nike is one of the Top 20 Innovators of The Innovation Index. Innovation Index Group, Inc. rates Nike a BUY, and has a Q4, 2008 stock price target of $80.

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index.

In the press release, Mark Parker, NIKE, Inc. President and Chief Executive Officer stated: "Our strong third quarter results, driven by sales gains across our diversified portfolio of categories, geographies, and brands, are a clear indication that our strategy is working and that we're on track to achieve our financial goals for this fiscal year and beyond."

Parker continued, "Over the past twelve months we've taken a number of important strategic steps to strengthen the performance and potential of our portfolio of products and brands, steps we believe create stronger platforms for growth and allow us to connect even deeper with consumers. More than ever, the consumer is at the epicenter of everything we do, and delivering the most innovative products and the most exciting consumer experiences is the key to our future growth."

Nike -> Most Innovative Products + Brands -> Most Exciting Consumer Experiences -> Tremendous Future Growth

Nike benefited from the exchange rate in the 3rd quarter that increased the revenue growth by 6 percent.

Future Outlook

The leading indicator on how well Nike will do in the 4th quarter is Futures Orders. Nike is well poised to repeat the revenue and earnings growth based on the future visibility:
The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from March 2008 through July 2008, totaling $6.9 billion, 11 percent higher than such orders reported for the same period last year.

Global Growth

Nike reported 20 percent or higher sales growth in Asia-Pacific, Europe and the Americas region (excluding U.S.) from last year. Global orders of clothing and footwear through July increased 11 percent. China sales were up more than 50 percent as consumers bought shoes and clothing before this summer's Olympic Games. Nike has already reached $1 billion in sales in China, a year ahead of its original target, Parker said in the earnings release. U.S. revenues were up 5 percent compared to last year. The global consumer is buying more diversified Nike products - shoes, apparel, equipment - thereby creating a revenue surge.

Parker concluded, "Our focus on prime growth opportunities extends throughout our portfolio of brands. We are confident that our divestiture decisions are the right ones for Bauer Hockey, Starter, and Nike. Our most recent acquisition, Umbro, is a brand that has tremendous heritage and respect in global football. This acquisition represents an opportunity to create value for shareholders and consumers by applying our product, brand-building and operational capabilities to a business with enormous growth potential around the world." - Innovation through acquisition. Nike is not shy to grow its global brand by acquiring a strong brand and channeling it through Nike's innovative process.

Recent Innovations

Earlier in March, Nike extended its partnership with Apple Inc. (NASDAQ: AAPL), another Top 20 Innovator, to the gym, by announcing Nike + iPod integration with gym equipments. Nike is poised to do well in this undertaking.

Nike also announced the Nike SPARQ Training, the company's "most comprehensive performance training launch ever, combining a relationship with SPARQ, high performance products, online experiences at nike.com, a new association with Velocity Sports Performance Centers, and a multi-media campaign called “My Better.”" The centerpiece of Nike’s efforts is SPARQ which stands for Speed, Power, Agility, Reaction and Quickness

These key innovations across a diversified portfolio of products, global distribution, and global growth will likely propel Nike's revenue and earnings growth through 2010.

Nike is one of the Top 20 Innovators of The Innovation Index. Innovation Index Group, Inc. rates Nike a BUY, and has a Q4, 2008 stock price target of $80.

Related Articles:

Nike (NYSE: NKE) and Apple (NASDAQ: AAPL) working out at a Gym near you
Creativity And Innovation in Business Definitive Guide

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 - (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.
*Past Performance Does Not Guarantee Future Results

Nike (NYSE: NKE) and Apple (NASDAQ: AAPL) 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.

Innovation Index Group, Inc. maintains a Buy rating on both Apple and Nike, with price targets of $250 for Apple, and $80 for Nike in 2008.

Related Articles:
Why Apple will hit $250 by December 2008?
Apple Creativity and Innovation in Business Case Studies

The Innovation Index Reports:

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
Introducing The Innovation Index - Detailed information on 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, Nike and Top Innovators of The Innovation Index.

References:
Nike and Apple Press Release

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.

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

Buy the latest iPod for lowest prices at Amazon.com

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 or less, joining the 16GB model for $399 or less, and the 8GB model for $299 or less.

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.

How can Apple turnaround the iPod sales growth?

(click to maximize)

Apple iPod growth is slowing in recent years.

Learn how can Apple turnaround the iPod sales growth?

Apple iPod - Apple's Best Innovation.

Buy the latest iPod for lowest prices at Amazon.com

Creativity And Innovation in Business Definitive Guide 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. 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. This eBook is used by over 300 leading organizations and universities including Pepsi, EDS, HP, Nokia and more.

Download the Creativity And Innovation in Business eBook Now



Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

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

Introducing The Innovation Index Fund - Learn about 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.

Apple iPod innovation article originally published October 23, 2006. Updated February 09, 2008, May 08, 2009

Adidas versus Nike - The Innovation Game is On

"It's hard to build an identity for your brand around a team," says Charles Denson, Nike brand president in the Wall Street Journal story. Denson asserts: "We built our brand around the athlete and his or her personality, creativity and innovation. I think that's what gives the Nike brand the edge it has today."

Do you agree?

If you are running a business, you would be quick to say: "No Way! Teams make Business happen!" We have come to accept that teamwork, team collaboration, team building, teaming, team spirit -- are essential to business success. We have been told to never use the term "I" in business.

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

The david Adidas - "We over Me" (or "We over I")

According to Wall Street Journal, Adidas is about to launch a new innovative campaign praising the Team Spirit in sports. In a new 11-year partnership with NBA, Adidas is launching a brand new campaign with the slogan: "It takes 5IVE" - celebrating the concept of team over individual or "we over me". The campaign is the brainchild of Simon Atkins, Adidas' director of marketing in the U.S.

Adidas will showcase five NBA stars together: Tim Duncan of the San Antonio Spurs, Kevin Garnett of the Minnesota Timberwolves, Tracy McGrady of the Houston Rockets, Chauncey Billups of the Detroit Pistons, and Gilbert Arenas of the Washington Wizards.

It's interesting to note that Adidas has picked the sort of blue-collared, hard working, good citizenship team players, and role models of the community as part of its 5IVE Team.

A TV commercial will began airing this week where the players look into the camera and say: "It's not about them, but rather the team." Besides the commercials, there will be print ads, online web ads, and even a new video game in collaboration with EA Sports.

Adidas will launch signature basketball shoes for all five players in the range of $80 to $130. And to take this one step further, Adidas is also launching 30 different basketball shoes - each shoe representing special design and logo of an NBA team - for about $100 each.

The goliath Nike - "I want to be like Mike"

Nike has always been big on marketing the individual as the passport to selling basketball shoes. From the world famous Michael Jordan who made an empire for Nike in basketball with the Air Jordan shoes and apparel, to the new king of basketball LeBron James riding high on the success of Nike Zoom Lebron, it has always been about the Individual spirit, the Individual drive, the Individual personality, the I in the Individual. Shaquille O'Neal has also championed the growing line of Shaq by Nike.

Nike owns over 80% of the U.S.'s $2.6 Billion basketball market and its share is also growing year over year; while Adidas' share of the market is only about 14%. Adidas is growing market share. But it remains to be seen whether it will grow at the cost of Nike, or other lesser brands.

Who will win?

If this was running a business, We always wins. I always loses. But this is not just running a plain ole business.

For now, Adidas wins with the new partnership with NBA and EA Sports, creating the "team spirit" in the NBA where everything is literally about "I" and players lack camaraderie, great community message that could jive with the NBA fans, and a cool line of new shoes touting Teams and showcasing each NBA team. Even NBA wins in the process.

Adidas is definitely innovating and challenging the widely held "I" culture of NBA. And Adidas is doing this creatively. NBA has a lot to gain from this program as well.

However, when I go shopping for basketball shoes, do I really care about the "team" or "5IVE" or "We". I am out there buying a great pair of sneakers. And I am definitely thinking Jordan, Shaq, LeBron - "I want to be like Mike" when I put them shoes on and go for that layup. I am not thinking Duncan, Garnett, Arenas, McGrady, Billups - whose collective popularity is probably less than any of the Nike stars. Perhaps I am not an average shopper. Perhaps Adidas could have picked the NBA stars who are the most popular, and created a team with them. Then again, that wouldn't have been a team, would it? It would have been an "I Team".

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

References:

Wall Street Journal