Analyst: Apple will transform iTunes, allow over-the-air iPhone downloads within the year

Apple, Inc. will transform iTunes into a wireless service for the new iPhone, or create a wireless offshoot of the popular online music service, within the year, Pike & Fischer predicts in a new report.

Apple will have to take such a step to remain competitive, as consumers will increasingly demand the ability to download music and video clips over the air, the Silver Spring, MD-based company argues in an analysis of the U.S. mobile broadband market.

“Consumer expectations will advance to the point where they will eschew reliance on a PC and cable to get content onto their iPhones and other portable devices,” says Pike & Fischer Senior Analyst Tim Deal, lead author on the report, in the press release. “Apple will therefore be forced to offer over-the-air downloads to remain competitive.”

AT&T, the exclusive distributor of the iPhone, has launched its own music download service for its wireless customers. But that service does not work with the Apple device, which hit the market June 29. AT&T rivals Verizon Wireless and Sprint Nextel also offer music downloads for their customers.

The report also predicts that Apple will have to revisit its pricing strategy for the iPhone, which can run up to $600, after the device has been on the market for a few months and demand starts to fluctuate. Additionally, Verizon Wireless is likely to launch an iPhone alternative, in collaboration with a handset manufacturer such as Samsung, in time for the 2007 holiday season, according to the report.

Pike & Fischer, a BNA company, offers a host of legal and business products covering the telecommunications industry. This new report, U.S. Mobile Broadband Services – 2007 Competitive Analysis and Strategic Outlook (US$799) is available at
All of the components are seemingly in place for such a service – if Apple wants to go in that direction.


  1. As if there weren’t enough complaints about the speed of the EDGE network — let’s download songs over it! (I, by the way, demand them in the Apple Lossless format, at about 22 MB for a 3-minute song.)

  2. I agree with R. Who needs to download songs over their slow mobile phone connection? The iPhone/iPod is a listening device. You spend time on your computer sorting your library and selecting which songs/podcasts/videos you want to load onto it.

    Every analyst has got the iTunes/iPod killer service/product wrong so far, so let them carry on slamming Apple for its inability to ‘stay competitive’.

    Now where’s my Zune turd so I can get on the ‘social’?

  3. PEOPLE. First we see the word analyst. We pause and think. Then we laugh at what ever they say.!!!! LOL LOL

    Analyst,” Apple must offer an FM player in its iPods cause everyone else does.”
    “Apple must offer subscription music cause everyone else does.”
    No talent people telling us what we must believe. Its way too sad. 🙁


  4. And then Apple will place Music Stores everywhere (physical ones, that is), in which there will be computers (Macs?) or terminals with a secure wireless connection in order to sell digital downloads….Bring you own iPod, or iPhone (everybody with an iMac or a Mac Mini can also carry it, if they carry also the display and keyboard, in the last case, just the keyboard in the first), and then go loaded with the music you like (and can pay for)

    Can’t you do it already from home? Sure…but there’s the admission fee. Think as a club for select snobs…oops, members

    Doomed, Apple, aren’t you?

    Everytime i think about, Apple is turning in……something different. We’ll see

  5. The average time to load this page (3 loads) was 18 seconds. I don’t notice much of any difference with MDN’s new server. We’ll see what happens on a busy day, maybe like later on today.

  6. I guess maybe I’m set in my ways, but I just don’t see it. Do that many people really want to download music while out and about? I mean, aren’t the other guys offering this folding up… “blood on the click wheel” ya know? And as others have mentioned, just the sheer pain of downloading music over an EDGE connection would seem to keep Apple from doing this. Seems Apple is pretty good about NOT doing things that would be painful for the end user, even if they’d be kinda cool.

  7. There is NO iPhone alternative! Neither Verizon nor any other cell phone service or cell manufacturer has an alternative to the iPhone.

    The iPhone is unique because of the OS, and not because of its design.

    There are many sexy cell phone designs, but not OPERATE like the iPhone, because none have an intuitive user interface.

  8. If you watched the interview between Wally Mossberg and Super Steve from June, Stevie talks about how you DO NOT want to have to copy back songs you bought on your wireless device to your computer. (you loose your device, you’re toast) It’s a better experience to look for music from your computer. I can see sending an email of some sort from your phone (phone home icon ” width=”19″ height=”19″ alt=”tongue wink” style=”border:0;” /> ) to home (what ever home ends up being) telling it to purchase the song for you. Then when you get home, you have it.

  9. Pike & Fischer must be full of silly windows users. I can’t believe these people get paid for such “inspired” predictions! Anyone with an iPhone who can open iTunes, click on File and see the option to [Transfer Purchases from “Jon Doe’s iPhone”], could predict that you will be able to buy music directly off your iPhone. This isn’t rocket science, people. Sheesh!

  10. Macaday is exactly right. This is stock manipulation, and frankly I’m sick of seeing this site participate in it by linking to every crackpot that hangs out a shingle that reads “analyst”.

  11. Additionally, Verizon Wireless is likely to launch an iPhone alternative, in collaboration with a handset manufacturer such as Samsung, in time for the 2007 holiday season, according to the report.

    And I’m sure such alternatives will be every bit as successful as the competitors to the iPod…

  12. Ludicrous trash is what this declaration is that all. Most people who own apple products I’m sure will be willing to make the compromise of syncing the phone to the laptop for all their multimedia entertainment for some time to come. It took me less than 5 minutes to sync 4 Gigs worth of entertainment between my Iphone and mac-book.

    If I buy a whole season of a television show it literally takes 6 hours to down load to my mac-book so I have to do it in blocks or let my mac-book go overnight. My DSL is 768 K Verizon. I found the 3 meg product unreliable with the copper in my building. A song in apples best resolution lossless format takes 2 to 4 minutes. Can you imagine buying and album. Edge is 5 times as slow so we are now talking 10 to 20 minutes for one lousy song. What if you want an album is your connection gonna be stable while you’re moving around?

  13. er…….mmmm Competiton?
    Does itunes have to compete with itself??
    Duh! or is it Doh!!

    The only request I would make is for the download rating to be increased to 196 or if you already own the CD to upload at the same rate.

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