The iPod Phone Myth

“According to proponents of this myth, Apple’s success with the iPod is about to be crushed by an onslaught of music playing cell phones, so Apple needs to desperately come up with an iPod + cell phone combination of their own to remain relevant. They’re wrong, here’s why,” Daniel Eran writes for RoughlyDrafted.

“This myth is based in part on ‘Microsoft is Invincible FUD,’ which carefully warns consumers that whatever strategy Microsoft choses will be both flawless and undeniable, and that rather than examine options, it’s best just to wait around and see what Microsoft eventually delivers, and then make the best of it,” Eran writes.

“However, Microsoft has repeatedly failed in their ongoing attempts to leverage their Windows monopoly to dominate the digital music and media market. Instead, consumers have chosen to buy iPods, leaving Microsoft’s WMA strategy soundly defeated by Apple’s device and the QuickTime technologies that power it,” Eran writes.

“Apple sold 35 million iPods in the last year. The entire cell phone market is estimated to have 850 million units ship in 2006. Of course, most of those phones can’t play music, but the numbers suggest a way to prove that Apple’s iPod product isn’t actually destroying the competition by competing fairly as a better product, but is rather just a strange niche product that represents a temporary statistical anomaly. As soon as consumers figure out that their cell phone is just as good at playing music, analysts hope to see Apple’s share of the market fall into the 5% or less range,” Eran writes.

“Once Apple goes back to being inconsequential, and Microsoft returns as the invincible decider of industry trends, lazy analysts can return to comfortably prattling off the same pro-Microsoft FUD that, in fulfilling its own prophesies, has served their own interests by making them look knowledgeable and smart over the last two decades. Of course, until that happens they continue look stupid, so they’re motivated to talk about iPod Killers. Mobile phones are just the last best hope for challenging Apple’s music player,” Eran writes.

Full article, highly recommended, here.

[Thanks to MacDailyNews Reader “Rainy Day” for the heads up.]

Advertisements:
Introducing the super-fast, blogging, podcasting, do-everything-out-of-the-box MacBook.  Starting at just $1099.
Get the new iMac with Intel Core Duo for as low as $31 A MONTH with Free shipping!
Get the MacBook Pro with Intel Core Duo for as low as $47 A MONTH with Free Shipping!
Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
Connect iPod to your television set with the iPod AV Cable. Just $19.
iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.

Related articles:
Apple ‘iPhone’ inevitable, but not imminent – June 13, 2006
Patent application shows iPod capable of live wireless video conferencing – June 13, 2006
Bear Stearns comments on Apple: ‘true’ video iPod, iPhone, multiple OS plans – May 17, 2006
Report: Apple Computer may soon launch its own music ‘iPhone’ – March 31, 2006
RUMOR: Apple ‘iPhone’ put on hold – March 30, 2006
Visiongain: Apple ‘iPhone’ launch imminent – March 29, 2006
BenQ exec: Apple’s iPhone ‘definitely coming’ – March 23, 2006
European patent application shows Apple ‘iPhone’ info? – March 21, 2006
Analyst: Apple ‘iPhone’ could put a dent in Motorola – March 20, 2006
Anayst: 75-percent chance of Apple ‘iPhone’ in next 12 months – March 16, 2006
Citigroup tech analyst: Apple ‘iPhone’ is going to be a category killer – March 03, 2006
Motorola to make Windows Media phones, keep separate iTunes phone line – February 13, 2006
Review: Motorola SLVR Apple iTunes mobile phone ‘an incredibly slick gadget with some shortcomings’ – February 13, 2006
Motorola and Cingular launch new SLVR L7 iTunes phone – January 31, 2006
Analyst sees new Apple iBooks by April, ‘media hub’ product, 1GB iPod nano, iPhone within a year – January 31, 2006
Analysts tackle Apple’s ‘Mobile Me’ patent, iPhone rumors, MVNO possibilities – January 19, 2006
The San Francisco Chronicle: Apple may link cell phone, iPod – January 17, 2006
Apple Computer getting into the mobile phone market? – January 12, 2006
Apple applies for ‘Mobile Me’ trademark – January 11, 2006
Morgan Stanley predicts Apple shares surge, Apple ‘iPhone’ in 2006 – December 16, 2005
Analyst predicts Apple-branded ‘iPhone’ with iTunes and terabyte iPod within five years – November 11, 2005
How Apple’s Steve Jobs snookered the entire cell phone industry – October 03, 2005
Motorola CEO Zander: Apple to build a smart phone, it’s only a matter of time – September 29, 2005
Apple may eventually introduce its own ‘iPhone’ cell phone-iPod combo and create Apple MVNO – September 12, 2005
If Apple isn’t working on their own iPhone, they’re making a stupid mistake – September 12, 2005
Does Apple need a mobile phone of its own design? – September 09, 2005
Piper Jaffray: Apple should develop ‘iPhone’ by themselves – September 06, 2005
Forbes: Apple Computer planning to become a phone company? – July 08, 2005
Wendland: Bill Gates is right, iPod will be replaced by smartphones – by Apple – May 13, 2005
Apple Registers iPhone Trademark in Australia – December 02, 2002

34 Comments

  1. I still can’t decide if I want to devices or one.

    Just hate over pricing of items, such as food, soda, and CELL PHONES!!

    Moto says, “here, buy our SLVR for $200 bucks” and i’m thinking, i’ll just buy a Nano, have more capacity, better branding, much better interface and enjoy the interopoerability.

    Tough call though

    Most phone interfaces suck. I’ve enjoyed SonyEricsson and some Nokias

  2. I love how some phone companies sell mobile phones with the line, “Now with Windows Mobile.” I don’t know about you but “Windows Mobile” isn’t a feature it’s a warning label.

    In Microsoft’s defense it can’t be that much worse than the mobile phone OSs that are out there. I keep waiting for Apple to finally release something quality into that industry.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.