“How many times have you heard or read about the ‘iPod Killer,’ the new MP3 player from XYZ Company that is going to impact the iPod/iPhone market share (I believe Google’s Nexus One and Motorola’s Droid are the latest entrées [“iPhone killers”])? How many times did that actually happen? So, why is the iPod the best selling hand-held portable multimedia device? Why hasn’t any other company really cracked iPod market share? What’s so magical about the iPod?” David Moskowitz asks for CIO Update.
Moskowitz writes, “The answer may surprise you. Consider the following three points:”
• The problem isn’t building a better technical capable or technically superior device―most people don’t buy the iPod just for the technology.
• The problem isn’t crafting a better music store―again, people don’t buy the iPod because they’re in love with iTunes music store. In fact, an iPod isn’t even needed to purchase music from the iTunes music store.
• The problem isn’t creating a better software interface―people don’t buy the iPod to get the software since it can be downloaded for free.
Moskowitz asks, “So, what is the answer?”
“The reason the iPod is the No.1 portable music device is because Apple didn’t attempt to just build a good player they put together a complete end to end experience with a good device, good software and good music store,” Moskowitz explains. “All of the pieces work seamlessly and easily. Any company that attempts to compete can’t do it at the device level, or the software level or the store level. Apple changed the game―not just the rules.”
“It’s not just product success that matters as much as it is seamless end-to-end service provisioning that integrates third-party providers,” Moskowitz writes.
Moskowitz writes, “Apple recognized services, not technology, as critical to capturing market share. Apple was the first company to connect the dots and put all of the pieces together into a cohesive, easy to use, end to end service―not just for users, but for developers, too. Any competitor that thinks they can compete on any individual piece doesn’t understand the new value proposition Apple created.”
There’s much more in the full article – recommended – here.