BusinessWeek: ‘the digital music game is Apple’s to lose’

“As expected, Apple’s iPod music player dominated the spotlight at the MacWorld San Francisco Expo last week. CEO Steve Jobs unveiled a smaller, lighter, and slightly less expensive version of the wildly popular digital-music playback and storage device. He also trotted out impressive stats showing that iPods are getting about 55% of the gross revenues from sales of all digital-music players. Few anticipated, though, that the iPod would also steal the limelight at the much larger and broader Consumer Electronics Show (CES) in Las Vegas,” Alex Salkever writes for BusinessWeek.

“Jobs managed to accomplish this with an announcement that Apple would start shipping Hewlett-Packard-branded iPods at some point in the summer of 2004. Equally important, HP CEO Carly Fiorina said the No. 2 PC maker would install Apple’s iTunes Music Store software and put the shop’s icon on the home screen of HP’s (HPQ ) consumer machines,” Salkever writes. “The deal stipulates that Apple won’t co-brand iPods for any other PC company. But Apple will gain powerful distribution through HP’s extensive retail network, a development that likely will fuel a new wave of iPod purchases and a steady stream of people buying music through iTunes Music Store.”

Salkever then mistakenly states that, “Apple’s own format is known as known as Advanced Audio Coding, and it’s teamed with an antipiracy scheme dubbed FairPlay.” [MacDailyNews Note: Advanced Audio Coding (AAC) was developed by the MPEG group that includes Dolby, Fraunhofer (FhG), AT&T, Sony, and Nokia


  1. its a beautiful time we live in, people are finally starting to question M$ and looking for cheap and better pastures. Maybe that default field on Windows XP did it. They sowed the oats of their own destruction. You know Heaven really is white (iPod)), and now in designer colors (iPod mini).

  2. If Microsoft’s best defences are copy-protected WMA and Portable Media Centre then Apple has nothing to worry about. AAC and the iPods are simply better quality and better value than anything the competition has so far come up with.

  3. “for me, heaven is pink ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />” – Mac Beth

    I agree, although we may think different thoughts. 😀

  4. rageous,

    you didn’t slag BriAnimation.

    BTW, do you really have to shit on people? Does it really fscking matter if people have a little goofy fun.

    FerFsckSakes, M$ is yet again trying to shit on everyones head, and call it a warm, brown hat – and you worry about people POSTING BEFORE YOU.

    Let’s hear what you have to say about the subject. Or any subject.

    Anyway, I say let M$ be to computers what Wang was several years ago.

    Let MacOSX and Linux do the rest.

  5. Let me put it this way. Portable DVD players have been around for 3 years or so. Their price has fallen , and I have yet to see one in the public. I don’t know of any one who has one. a Portable Media Center, with lack of easy to get video’s, will be a total failure

  6. peragrin,

    I agree with you. I don’t see the Portable DVDs around at all and Jobs was right, the Portable Media Center requires your full attention. Who has the time to just sit and watch movies all the time…on a 5″ sceen even! This is why the iPod is the runaway success that it is. People want music on the go, not movies.

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