Steve Jobs plays high-stakes poker with greedy record labels

“In a parallel world, Steve Jobs could have been a poker player with a reputation as a cool hand. After three decades at the top table of technology, all the required skills are there: patience, self-belief, bravado — and, most importantly, the ability to ride a streak of luck,” Bobbie Johnson reports for The Mail & Guardian. “‘Some people thought we got really lucky with the iPod, and we did,’ says Jobs. But, he adds, real winners don’t just enjoy the breaks, they exploit them. It is necessary to stay on top, especially when everybody’s out to get you. As he puts it: ‘We have world-class competitors trying to kill us.'”

Johnson reports, “So far, the competition is not doing a great job. Apple’s hand in the home computer market might be weak, but it holds all the cards in digital music. Thanks to phenomenal sales of the iPod over the past few years, the company is at an all-time high and its dominance of music downloading is almost total. More than six million iPods were shipped in the past three months, underpinned by a pervasive marketing campaign and growing consumer awareness. No wonder, then, that Jobs is in confident mood.”

Johnson reports, “Dressed in the regulation outfit of a Californian intellectual — black, black and more black — he is upbeat about the future of Apple, the company he founded almost 30 years ago in his parents’ garage. He believes that central to the company’s success is Apple’s vision — his vision — of making technology simple. ‘There’s a very strong DNA within Apple, and that’s about taking state-of-the-art technology and making it easy for people,’ he says. Jobs’s targets are busy, modern consumers; ‘people who don’t want to read manuals, people who live very busy lives.'”

“There are certainly a large number who buy into that concept. But while many are drawn in by the slick advertising and fashionable branding, those who stick around are often motivated by the man himself. On stage, and with an audience to play with, Jobs is the ultimate salesman. His speeches are famous for generating the “reality distortion field”, a sense of devotion to the cause that most rival technology bosses would kill for. Some fans will go wild for each new product that Jobs delivers, and his enthusiasm and charisma pour out across the stage,” Johnson reports.

“It’s clear that ownership is important to Jobs. He might not own Apple, but as the public face of the company he does lay claim to the firm’s image, and understands the necessity of being seen as ‘the good guy.’ For instance, when it is suggested that record labels might look to increase their income by bumping up the price of iTunes downloads, he brings in the spectre of illegal downloading,” Johnson reports. ‘Music companies make more money when they sell a song on iTunes than when they sell a CD,’ Jobs says. ‘If they want to raise prices, it’s because they’re greedy. If the price goes up, people turn back to piracy — and everybody loses.’ This is how things work: with a swift shuffle, he asserts Apple’s ownership of the music download market, and distances it from the messy decisions.”

Full article here.
Apple’s hand in the home computer market is not as “weak” as some might think. Anywhere from 8 – 16% of personal computer users own and use Apple Macs. See related articles. Besides that quibble, this is an excellent article that focuses on Apple CEO Steve Jobs’ ability to sell Apple products and Apple the company.

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Record labels accuse Apple CEO Jobs of ‘double standard’ as they seek to force iTunes price increase – September 21, 2005
Apple CEO Steve Jobs to repel ‘greedy’ record companies’ demands for higher iTunes prices – September 21, 2005
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