May 26, 2004: Apple Starts an iPod Division

When Apple first introduced the iPod it was an extension of their "digital hub" strategy whereby a Mac would act as the center of all the digital media a consumer owned. It was a nice idea but when Apple added Windows support and geared up the iTunes Music Store, the iPod started much more quickly than first anticipated.

With over three million units out the door Apple was seeing the iPod not just as an addition to the digital lifestyle of the digitally aware but as a gateway product that could lead to much bigger things. To keep the iPod on track and keep the innovations flowing, Apple decided to create an entire division.

Apple didn't scrimp on talent for the newly created iPod division, tapping former Hardware Engineering VP Jon Rubinstein to lead the effort. Apple sent the message to the world that the iPod was no longer just an accessory for computers but an integral part of its long-term strategy when the iPod division was formed this week in 2004.