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.]

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  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.

  3. These geniuses still don’t get it. The iPod is successful because of the interconnectivity with iTunes via the Dock. Who is to say that the iTunes store won’t become a ringtone shop as well? They sell everything else nowadays. Download your favorite movies, music, ringtones, etc. at the new Apple iMedia store!

    If Apple does sell an iPhone, I hope that it works like a wireless iPod with additional phone features, and NOT like a cell phone with additional music features.

  4. 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.

    My thinking is that Apple IS developing a mobile phone/music player. As soon as iPod units sold start to drift, and Apple can get a revenue sharing agreement with a carrier, then we will see it.

    I’m drooling over the prospect of a cell phone (you can keep the music) with an Apple inspired interface. I see a 12 key keypad with a scroll wheel, linked to an LCD display, and an iPod like interface.

    Apple owns the patents. How hard would it be to make?

  5. sorry but the article is dead wrong. My Moto Q changed my mind. Smartphone will definitey supersede the iPod.

    I’m sure Apple knows this and there will definitely be an “iPhone”

    Still no store comes close to iTunes. Even though we’re using Urge for the past month we still go to iTunes to see what the new releases are…now that’s a real store.

  6. Apple is still planning on launching its own cellular service, their ipods of the future will be able to download updates and songs wirelessly, the mactablet will be network supported, and for phones they will have cross branded Motorola phones with a modified applesc OS interface.

  7. Raster . . .

    That was a good comment. My initial responce was that Apple will not wait around, they will be proactive.

    But then I thought, as long as apple does not need to make a move, why prematurely make a move in the market (that they own), why not wait until their hand is forced?

    Apple may be waiting for someone to make a move first, to get to ball rolliing to see what the market is for mass storage, music player, if there is none than it would seemingly be a waste.

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