“Apple’s version of the Maginot Line is the integration of the iTunes music store with the iPod and while people sincerely believe they can dethrone Apple from atop the electronic music market by just biding their time or making ever more silly mp3 players they are simply wrong, the only way to beat Apple in the electronic music field is by innovating something completely new and going around Apple’s carefully placed defenses,” Chris Seibold writes for Apple Matters.
“As it stands precious little innovation seems to be coming down the pipe but plenty of folks are sure Apple’s ride is over. Gene Munster, an analyst that usually has only the best things to say about Apple, was quoted by CNN as saying ‘Its inevitable that over time their market share declines.’ The reason Mr. Munster gives for this is that no particular product can dominate the consumer electronics market for more than two or three years. Going by past experience that is seemingly true, consumer electronics rarely hold such a large percentage of the market over such extended periods of time. Yet Mr. Munster forgets that the iPod is much more than just another consumer gadget people can get rid of on a whim. Once you couple the iPod with songs from the iTunes music store you’re stuck (short of EULA violating hacks) using the iPod as your mp3 player until something sufficiently compelling comes along to replace it,” Seibold writes.
Full article here.
Related articles:
Apple’s Japan iTunes Music Store sells one million songs in first four days – August 07, 2005
Study: 32 million U.S. adults plan to buy iPod in next 12 months – July 20, 2005
Needham & Co: Apple ‘iPod Halo Effect’ fueling Mac purchases; predict 43 million iPod sales in 2006 – July 18, 2005
Apple smashes street with record revenue, earnings; shipped 6.155 million iPods – July 13, 2005
Apple cuts iPod prices to grab market share; analyst estimates 35 million iPods shipped by year end – June 29, 2005
hmmm…whats the itunes music store
with my mac and ipod the only way to get music is to buy cd’s or download it for free
the record companys might let apple have an australian store one day
the ipod is fantastic,
my 4yo old daughter has no trouble operating it
its also the cheapest 1gb flash player on the market
“…Sadly, refusal to interoperate conflicts with Apple’s much-touted lies about supporting the open source model.”
F**k the much-touted open source model. Apple gives way more than they have to to this community, receiving mostly whining that they don’t do more as thanks.
Truth is, most innovation comes from the R&D dept’s of real businesses like Apple, not from nerd ashrams. Be thankful for the scraps you get from the big table, and stop piddling on the linoleum.
progeny said: “Apple gives way more than they have to to this community . . . “
Somebody had to say it. And it seems that the more they output, the more their followers demand. I mean, it’s great that Apple has a relationship with its customer base, and responds to our desires, but geez, I think they’re doing the best job out there of any consumer technology outfit.
While it may be true that what Apple is doing may reduce competition to some extent and thereby keep prices artificially high, I see no sign that Apple is trying to do so. In fact, many other music download companies have adopted the variable pricing model that the record companies have wanted them to and price some individual songs at prices up to $2.49. Apple, possibly due to their market power in downloadable music, has resisted that trend and tried to maintain the $.99 cent price. It would seem to me that Apple is actually doing more to keep prices down than more open competition would.