Apple faces the music from iPod rivals

Growing competition will either ravage Apple's ability to grow or create a market boom that will help Apple overall.

The story "Apple faces the music from iPod rivals" published March 11, 2005 at 5:36 AM is no longer available on CNET News.

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70% Market Share vs. Negligible

Here's the fundamental problem: it's much easier to maintain dominance in a market when you've reached the 70% threshold than it is to make a dent when your market share is negligible. For the also-rans to make a dent in the MP3 player market, they would have to come out with something so totally innovative that it renders everything else obsolete. The problem is that they are not. In many cases the also-rans are creating derivatives of the iPod, and most people are going to opt for the "real thing" rather than what is perceived as a "knock-off".

It is exactly the same problem Apple has in the PC market, but in this case it is reversed. Apple is on the verge of winning the digital content wars in much the same way that Microsoft won the desktop OS wars. HP was smart to license the iPod, and this will only serve to further seed the way for others to do the same thing (perhaps the likes of Sun, IBM, Canon, etc.).

[catchall]

Learn some history

You state
>>It is exactly the same problem Apple has in the PC market, but in this case it is reversed

No, this is exactly what Apple did in the past. They had a huge lead at the start of the personal computer revolution, and just tossed it away to those that had 'negligible' share, who offered 'what is perceived as a "knock-off"'. If Apple can do it again ( and remember, it's the same people running the show ), they will have simply repeated themselves.

70% Market Share vs. Negligible

Here's the fundamental problem: it's much easier to maintain dominance in a market when you've reached the 70% threshold than it is to make a dent when your market share is negligible. For the also-rans to make a dent in the MP3 player market, they would have to come out with something so totally innovative that it renders everything else obsolete. The problem is that they are not. In many cases the also-rans are creating derivatives of the iPod, and most people are going to opt for the "real thing" rather than what is perceived as a "knock-off".

It is exactly the same problem Apple has in the PC market, but in this case it is reversed. Apple is on the verge of winning the digital content wars in much the same way that Microsoft won the desktop OS wars. HP was smart to license the iPod, and this will only serve to further seed the way for others to do the same thing (perhaps the likes of Sun, IBM, Canon, etc.).

[catchall]

Learn some history

You state
>>It is exactly the same problem Apple has in the PC market, but in this case it is reversed

No, this is exactly what Apple did in the past. They had a huge lead at the start of the personal computer revolution, and just tossed it away to those that had 'negligible' share, who offered 'what is perceived as a "knock-off"'. If Apple can do it again ( and remember, it's the same people running the show ), they will have simply repeated themselves.

[Filip Remplakowski]

But...

selling cumputers and music are two different things. At this
point in time iTunes sells music at a lower price than other
services, most people choose to own an iPod becuase it is
superior than any other mp3 player out there in terms of design,
use and the iPod economy. you could compare the amount of
ipod peripherals to the amount of software for windows, people
like choice and apple is giving them a lot of it even in a closed
system where the iPod only works with iTunes. They get good
quality downloads at a fair price and iTunes is also supporting a
lot of independant musicians now (which is an improvement
from the begining and is still improving). iTunes itself shows
that apple isn't just about superior hardware but the software is
absolutely amazing. It is a shame more people don't buy a mac,
it's only once you own one do you realize how much more
productive they are, although saying that a mac isn't for
everyone but the majority of pc users would benifit from owning
one. If more software developers got their products over to os x
then anyone could get a mac. I'm just pissed off because Bently
software and Autodesk won't bring out Microstation or Autocad
on the mac. I've emailed them but i guess my money or opinion
doesn't matter. off topic there sorry, just frustrated when people
don't take you seriously.

[Filip Remplakowski]

But...

selling cumputers and music are two different things. At this
point in time iTunes sells music at a lower price than other
services, most people choose to own an iPod becuase it is
superior than any other mp3 player out there in terms of design,
use and the iPod economy. you could compare the amount of
ipod peripherals to the amount of software for windows, people
like choice and apple is giving them a lot of it even in a closed
system where the iPod only works with iTunes. They get good
quality downloads at a fair price and iTunes is also supporting a
lot of independant musicians now (which is an improvement
from the begining and is still improving). iTunes itself shows
that apple isn't just about superior hardware but the software is
absolutely amazing. It is a shame more people don't buy a mac,
it's only once you own one do you realize how much more
productive they are, although saying that a mac isn't for
everyone but the majority of pc users would benifit from owning
one. If more software developers got their products over to os x
then anyone could get a mac. I'm just pissed off because Bently
software and Autodesk won't bring out Microstation or Autocad
on the mac. I've emailed them but i guess my money or opinion
doesn't matter. off topic there sorry, just frustrated when people
don't take you seriously.

Reality check for the "wanna-be's"

Apple innovated first, they innovated well, and they continue to innovate. Lowering prices, boosting song capacity, offering iTunes, and extending battery life doesn't hurt either. And, most importantly, they've won many consumers' hearts. The "wanna-be iPod" companies have got to stop chasing Apple feature-for-feature, step back, and take an honest look at the market. Can they beat a company that has 70% of the market, or would they and their shareholders be better served focusing on a different technology market that has not been so saturated? Apple has managed to concede first place to Microsoft in the PC market, but found an area of opportunity in the iPod. What opportunities are these other companies missing in their quest to kill the iPod?

Reality check for the "wanna-be's"

Apple innovated first, they innovated well, and they continue to innovate. Lowering prices, boosting song capacity, offering iTunes, and extending battery life doesn't hurt either. And, most importantly, they've won many consumers' hearts. The "wanna-be iPod" companies have got to stop chasing Apple feature-for-feature, step back, and take an honest look at the market. Can they beat a company that has 70% of the market, or would they and their shareholders be better served focusing on a different technology market that has not been so saturated? Apple has managed to concede first place to Microsoft in the PC market, but found an area of opportunity in the iPod. What opportunities are these other companies missing in their quest to kill the iPod?

[My-Self]

Sony, MP3 and DRM

While nearly all portable player are SDMI compliant or integrate one form of DRM or another, sony has long pushed for the most restrictive, least user friendly path. It wouldn't be wise for people buy a device designed by a card carrying RIAA member (Sony Music division) to enforce DRM only playback and could stop playing regular MP3 as soon as they reach critical market share.

PS : I'm not an IPod fan, I own a MPIO FL100.

[My-Self]

Sony, MP3 and DRM

While nearly all portable player are SDMI compliant or integrate one form of DRM or another, sony has long pushed for the most restrictive, least user friendly path. It wouldn't be wise for people buy a device designed by a card carrying RIAA member (Sony Music division) to enforce DRM only playback and could stop playing regular MP3 as soon as they reach critical market share.

PS : I'm not an IPod fan, I own a MPIO FL100.