Analyst: With iPod, Apple’s ‘willing to do whatever it takes to maintain their market dominance’

“Apple Computer played a new tune Wednesday with its wildly popular iPod digital music player, cutting prices and adding more storage and features. The iPod mini got mightier as the original 4-gigabyte model, which holds about 1,000 songs, dropped $50 to $199. Apple introduced a 6-gigabyte (1,500 songs) model for $249 and more than doubled the battery life. The iPod photo, which displays digital photos on a color screen and plays music, dropped to $449 from $599 for a 60-gigabyte model (15,000 songs). And a new 30-gigabyte model (7,500 songs) will sell for $349,” Dave Gussow reports for The St. Petersburg Times.

“All of this is for a device that dominates the digital music sector, with about 90 percent of the hard drive market. Experts say it was an effort by Apple to put more heat on the competition,” Gussow reports. “‘They’re willing to do whatever it takes to maintain their market dominance,’ said Stephen Baker, an analyst with the NPD Techworld research firm.

“‘We’ve done very well, but we’re not resting on our laurels,’ Greg Joswiak, Apple’s vice president of hardware product marketing, told the Associated Press. ‘And we’re going to continue to be very aggressive in this market.’ The company is benefiting from what analysts have dubbed the ‘iPod halo effect.’ Sales of the iPod are spurring orders of other Apple products,” Gussow reports. “Eliot van Buskirk, senior editor at MP3.com, says other companies are trying to mimic Apple’s stylish device and its easy-to-use software. But no one has come close. ‘Everybody’s trying to catch up and they just have not stumbled,’ van Buskirk said. ‘If Apple had a weakness, it was price. And they shored that up.'”

Full article here.

28 Comments

  1. This Bush topic is done to death. Give it a rest.

    The time will probably come when your iPod does it all. But I’ll bet it won’t be made by Apple until it does all those things well.

  2. Mr. Bill, I posted a link to this image of the Creative Zen Portable Media Player on MDN when it first came out and was being touted as the next great thing, iPod killer, etc.:

    Now come on, do you REALLY “definitely” think we are on the cusp of a worldwide wave of people doing what this person is doing? If so, there are going to be an awful lot of people with tired arms and large wrinkles around their eyes from squinting at cellphone screens even smaller than that one.

  3. And wouldn’t you rather carry around 1 item as opposed to several gadgets?” – Mr. Bill

    I do. My iPod. My Address Book and iCal are auto-synched with it, it contains all my notes for the day, and all my music. My PDA (Handspring Visor Edge) is collecting dust in a bin on my desk, and I’ve now liberated myself from my mobile phone.

    Done.

  4. JFK’s Head mentioned a Government Computing article above but did not provide the link. Here it is:
    http://www.gcn.com/24_4/prod_reviews/35101-1.html
    While being positive about Mac OS X, the reviewers appear unfamiliar with the full capabilities of the Mac OS. Further, I found it confusing that they faulted Apple for not providing MS Office free. Is it free from MS? I would think it is part of a full package when they buy their PC’s, the same of which could be done for a Mac package. Taking it further, do I misunderstand that they seem unaware that a regular version of MS Office is even available for the Mac? To me, saying the MS makes “an Office Suite” is not the same as saying that the regular MS Office application (sans Outlook & Access) is available for the Mac:

    “It lacks powerful Microsoft Office integration, such as the Crossover application that comes with the Xandros Desktop OS, but most Mac computers come standard with AppleWorks, which does a decent job of opening Office files. Microsoft also makes an Office Suite for Apple, which is much better than AppleWorks, but you have to pay for it.”

    Further, I think that AppleWorks only comes on the consumer computers, yet they were testing on a PowerMac G5.

    Well, I found it interesting reading with an obviously poor conclusion that they weren’t going to change from Windows anyway.

    Still, the fact that they are even evaluating alternatives may be a step forward. Or not.

  5. atomic flower: “And it’s the country that (currently) drives much of the world’s trends.

    I assume that’s a joke. How Americentric can you get? America does NOT drive much of the world’s trends.”

    atomic flower, give it a break. Not to answer for Drool Tunes, but I think what he was implying was that — for better OR worse — American tastes influence many world markets at the present time in history. As such, it’s still THE most important market to capture FIRST. The American consumer has incredible buying power and American popular culture (again, for better or worse) influences many habits across the globe. I can name several examples: Japan is crazy — and always has been, it seems — for American “stuff”. When I was in Germany not too long ago the people I know there listened to ONLY American music. And when I visited Denmark, well — as a culture they are fascinated by and greatly desirous of American concepts and trends.

    So, don’t view everything as a knock against other cultures and approaches to life. The fact is that Apple went after and (so far) has secured the most important market for them: America. Besides, Apple IS an American company.

  6. 私はあなた方のうちの何人かが望む限りiPod のハロー効果が持続することを考えない。しかしちょっと、きざにとどまりなさい

  7. I am very pleased to see the moves Apple has. Being the dominant player in the industry I’m sure they can get parts cheaper than the beleagered competition. I am in dire need to hear the Windows media mp3 players respond to this new ballpark they’re in. (They’re responses should be quite humorous and sweaty.) Surely some of them are gonna fold shop and liquidate.

    Still want the Firewire cable free exclusively for Macintosh owners who don’t have USB 2.

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