Why iPod/iPhone/iPad ‘killers’ always fail

invisibleSHIELD case for iPad“Contrary to popular belief, Apple’s (AAPL) lifeblood isn’t the iPhone. It’s not the iPod, it’s not the new iMacs, and it’s certainly not the iPad,” Michael Comeau writes for Minyanville. “What keeps Apple going is a little piece of free software called iTunes.”

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“iTunes has evolved from a piece of music-management software into something that 1) manages all your media, contacts, and appointments and 2) activates, syncs, and backs up the iPhone/iPad,” Comeau writes. “In other words, iTunes is now the personal operating system for millions of people, giving them a good reason to stay within the Apple ecosystem. When you buy a new Apple gadget, you plug it into your computer, and voila — iTunes updates everything and you’re ready to go, no thinking or effort required.”

Comeau writes, “It’s the most comprehensive piece of plug-and-play software on the market… iTunes is the glue holding Apple together, and the piece of the puzzle competitors need to focus on if they want to hurt Apple… The idea that an iPhone killer is on the horizon is pure fiction, because while we’re seeing a lot of great mobile hardware being produced, there’s absolutely nothing cooking in software that even comes close to countering iTunes. Until its rivals address the software part of the mobile-devices equation, Apple’s success will only be limited by its agreements with telecom carriers.”

Read more in the full article – recommended – here.

[Thanks to MacDailyNews Reader “Judge Bork” for the heads up.]

33 Comments

  1. The reason iPhone killers don’t work is because Apple restricts supply lines for materials like multitouch. Not to mention the fact that iTunes makes it easy to keep things in sync.
    No one is close to getting the same kind of interface.

  2. I think iTunes is the most important Apple application. However, I don’t think most customers (especially new customers) buy an Apple product because of iTunes. Even for existing customers, they don’t buy another iPhone or iPod because they think, “Hey, I want to keep using iTunes.” They buy the latest Apple gear because of the cool hardware and the software integrated into the hardware. The product itself will always be the primary driver for Apple’s sales.

    iTunes is part of the user experience, after the purchase decision is made. For iPod, iPhone, and iPad, it’s interface between computer and i-device. It’s the “store” for buying media and apps. It’s the utility for maintaining and backing up your i-device. iTunes is basically a value-added service for Apple’s hardware customers. In that “service” (not “sales”) role, it is critically important.

  3. “iTunes is now the personal operating system for millions of people”

    The above is the key line to focus on.

    Making iTune available on a PC to enable non-Mac users own and experience an iPod/iTunes back in 2002 was a strategic move on Apple’s part.

    It removed a key barrier that previously prevented ordinary people from engaging with Apple and directly experiencing first hand, the fruits of its ‘whole-widget philosophy’ and ultimately, its eco-system without having to buy a Mac. And guess what, ordinary people engaged in droves contrary to the callings of the many tech-pundits who are hostile towards anything Apple.

    The extremely positive consumer reaction to the iPhone and iPad product launches is a clear indication that ordinary people (not opinionated armchair pundits) see Apple as a trusted brand they can increasing relate to for reasons well beyond being ‘cool’.

    Many will continue to move across to the Apple eco-system as other technologies they own (i.e., peecees) come up for renewal.

    This is because for ordinary people, results matter.

    For a competitor to win against Apple today, it needs to not just replicate the iTunes/Apple ecosystem/walled-garden, but do so to a much higher standard in the face of the one company in the industry that is obsessed in setting an extremly high standard in the first place. Then said foolhary competitor has to go on to win the hearts, minds and dollars of ordinary people (and not the sour-puss opinionated armchair pundits). Which is a very expensive game to play.

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