“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.