“By most accounts Apple holds more than 70 percent of the market for portable music players and some 80 percent of the online music sales business through its iTunes Music Store – a fairly daunting lead, as contenders like Samsung, Sony have… found,” Richard Siklos writes for Fortune.
“And, meanwhile, as its rivals scramble to catch up and the music industry staggers through its digital transition, you could argue that Apple is moving the game to another level with its iPhone, video iPod and AppleTV receiver,” Siklos writes. “So why do they bother coming at Apple in the business of mobile music at all? Because, as iconic and singular as the iPod is, it is not as ubiquitous as one might think.”
“According to Solutions Research Group, a research firm based in Toronto, Apple is on track to have shipped nearly 120 million iPods worldwide by the end of this year, and nearly half that amount – about 60 million – Americans own at least one of the devices. (Many iPod owners are repeat buyers.) Thus, while the iPod is by far the leading mobile music player, it’s penetration of the U.S. population stands at around 20%, and it is lower overseas,” Siklos writes.
“The idea that the market might still be up for grabs also helps explain why its rivals want to stop the iTunes juggernaut while they can, and its partner-suppliers are pushing back before Apple extends its lead into the emerging world of digital video distribution and the already crowded mobile-phone market,” Siklos writes.
Full article here.
One important point that mostly goes without saying in Siklos’ piece (headlined, “Why the iPod can be conquered”), is that the market penetration figures also signal that Apple has plenty of room left for growth.
Not to play the race card but…
Is it coincidence that the premium iPods are black?
Just some food for thought.
Room for growth, sure. But why the assumption that everyone is a potential customer? Many, perhaps the vast majority of any given population, will never buy a portable music player.
120 million by the end of the year? I though that they have already sold 110 million. I would think that between now and then they will sell well over another 10 million. Maybe they mean 120 million by the end of the FISCAL year?
For the same reason that people keep claiming that Apple’s demise is right around the corner.
Bought my gen1shuffle from a coworker. He upgraded to new ipod. Some people with multiple ipods end up supplying those around them. Uncounted.
Did you read the article, MDN? I’m surprised you didn’t jump on the guy for that “iTunes songs won’t play on non-Apple machines” line.
Gave up on correcting journalists, perhaps?
bob,
I don’t get your logic, please explain.
Yes Bob, you are playing “the race card.”
If one tries to be the best person he or she can be, nobody will care.
Other companies should keep trying to come up with iPod killers, eventually someone will – probably – and more importantly, it keeps Apple on its toes.
All is well on the Apple front.
It’s definitely Fortune’s role to ensure that Apple IS conquered.
Shits.
iPod killers.
Isn’t doing the same thing over and over again and expecting a different result a sign of mental illness?
Only Sandisc has it right. They compete where Apple doesn’t, the very low end.
Apple should join Apple and make their own music label, right from the bottom to the top!
@bob
Stop trolling with “Not to play the race card but…” You posted the same crap in other threads.
I think bob is joking about the race comments from other articles today. race seems to be the running joke today
> So why do they bother coming at Apple
That is the fundamental difference between Apple and all competing companies. Apple creates unique products that no none else can produce without significant effort or obstacles. The others just try copy Apple as best they can.
Examples – Mac and Mac OS X. iPod and iTunes.
And if the market already had popular, easy to use, smart phones, Apple would not have created the iPhone.
Why do they keep coming at Apple? Stupidity springs eternal. The businesses just can’t figure out Apple and so presume that their success is a lark, and they’ll go into chapter 11 believing the very same thing. Moto, meet Creative.
Been on this site for a year now. I just looked to my left and noticed there are headers to other sites. Go figure!. Shows how much I tune out advertising. Been here about 200 time and just first noticed it today!
And not only does future potential growth for iPod/iTunes look good …
If we consider World Wide Internet/Computer usage
http://www.internetworldstats.com/stats.htm
Are only something like 1.25B machines out there now.
So that leaves a fairly respectable growth potential of other folks in the World who might be interested in a regular ol’ everyday Apple Mac at 5.25B
Gotta like them odds
BC
MDN Magic Word – done
As in: It ain’t done yet – damn, it’s barely gotten started
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What’s the problem about radio and iPods?
I, for one, love a bit of ‘The news Quiz’ or ‘The Archers’ (references lost on you Americans, sorry) while walking the dog but can I hear them on an iPod? No chance. So I won’t be buying one, thanks but no thanks Mr Jobs.
Add radio- NOT bloody video- to iPods and open up a whole new fan base!
Companies don’t come out with iPod ‘Killers,’ that’s what journalists like yourself proclaim to dramatize the competition. Rest on your laurels now, but there are some PDMPs coming out that rival iPods in many ways and someday, they will challenge them financially too. Rome, Greece, they all came tumbling down.
iPoods stink!!!
Why companies keep trying to come up with Apple iPod killers?
Answer: Same reason Apple, Linux and others try to find a way to bring down Windows. It is a dominant product in that area and it is there only because of marketing. My wife has an iPod video. She wanted an iPod. No reason other than that is what she wanted. It was a mindless decision. She didn’t research what she needed. Just like the mindless people who go by Windows boxes not knowing better. Most computer users would be much better off with a Mac but they have been brainwashed into Windows. Guess what ipods are OK but they aren’t any better than a lot of other “MP3” players out there. I have many gripes about ipods. So other companies don’t necessarily want to make a better player than ipod “some have already” they just want the name ipod to go away as the de-facto in portable players.
Steve Howe, you can get radio on iPods, you buy the radio cable from apple and plug it into the headphone port on your iPod.
Have a look on the apple store, they cost no more than £30 in the UK.
To Steve Howe:
In addition to ‘Jim’s’ radio option, you can download Newscasts/Talk Shows/Political Pundits/Comedy Shows/Sport Shows/etc automatically from the iTunes Store every day, and listen to cost free, commercial free, crystal clear, podcasts, along with music albums, and music videos.
I also subscribe to the Daily Show and the Colbert Report video’s, commercial free, at $4.99 per month, each). Money well spent.
Trying to make the “iPod killer”, is just the latest symptom of a lack of imagination. We’ve seen this before, when companies were trying to build the “Lotus 123 killer”, or the “IBM PC killer”.
When there’s a well-established, dominant product, you can NOT win by making a product that’s merely as good, or even slightly better. You MUST open up a commanding lead: a lead as great as that of the iPod over the Sony cassette walkman. A lead as great as that of the Boeing 747 over the DeHavilland Comet.
Even when the company in question has enormous piles of cash (like MSFT does), they can not succeed by playing catch-up. Anytime you hear a CEO saying they’re going to build the “next” anything, sell their stock.
-jcr
Trying to make the “iPod killer”, is just the latest symptom of a lack of imagination. We’ve seen this before, when companies were trying to build the “Lotus 123 killer”, or the “IBM PC killer”.
When there’s a well-established, dominant product, you can NOT win by making a product that’s merely as good, or even slightly better. You MUST open up a commanding lead: a lead as great as that of the iPod over the Sony cassette walkman. A lead as great as that of the Boeing 747 over the DeHavilland Comet.
Even when the company in question has enormous piles of cash (like MSFT does), they can not succeed by playing catch-up. Anytime you hear a CEO saying they’re going to build the “next” anything, sell their stock.
-jcr