Slashdot Mirror


Apple to Face iPod Clone Attack

chr1sb writes "The Age has a commentary piece outlining how Apple's domination of the online media market is continuing to grow, but speculating that significant competition from the likes of Nokia and Motorola will rapidly relegate Apple's presence in the market to a corner, just as clone manufacturing of IBM PCs dominated the initial success of the Macintosh. From the article: 'The iPod/iTunes system will move into a niche with Macintosh computers because Steve Jobs has again stuck with closed architecture and total control. This will happen quickly because mobile phones are being turned over about every year.'."

40 of 394 comments (clear)

  1. What? by davidstrauss · · Score: 5, Funny
    Companies are trying to compete with the iPod. I shall need a replacement monocle.

    I have got to stop getting so surprised.

  2. So are iPods. by Saven+Marek · · Score: 5, Insightful

    This will happen quickly because mobile phones are being turned over about every year.

    Given the buying habits of people I know with the devices, so are iPods.

    1. Re:So are iPods. by L0k11 · · Score: 5, Insightful
      we've heard this all before with the ngage and portable gaming devices

      "mobile phones are going to kill off the gameboy" - it never happened.

      at the end of the day people buy something for one task because it makes the interface simpler. sure my mobile can play mp3s but i'd much rather have something which is designed to play music as its sole function. just look at another example: camera phones. my phone can take pictures but the interface is clunky and the quality sucks. i dont know anyone who wouldn't prefer using a simple digital camera.

      its a jack of all trades but master of none situation.

      --
      "Those who cast the votes decide nothing. Those who count the votes decide everything" -- Josef Stalin
    2. Re:So are iPods. by Greg_D · · Score: 3, Insightful

      So, if that's the case, then why are there so many camera phones out there?

      You also miss an obvious point: camera phones can't take pictures as well as stand alone cameras can. iPods are nothing more than digital media storage devices with an interesting interface and an earphone plug.

      iPods are winning the war right now because they're a neat fad item with a decent interface and they hold a ton more data than most cell phones. But what happens when affordable flash media starts holding 10-20 gigs? Still want to bet on the iPod's supremacy when Joe Sixpack will be able to walk by a Cingular kisok and pick up a phone that has that kind of storage, no DRM lock-in, and a service plan that makes it cost about a hundred bucks?

    3. Re:So are iPods. by peragrin · · Score: 5, Insightful

      Two minor nitpick points

      1) Cell phone companies are 10 times worse than Apple or MSFT when it comes to vendor lock-in. if you buy a cingluar phone it will only play music from cingular. They are already doing such things with their vcast, and TV on the road setups.

      2)Cell Phones have horrible battery life as it is. you start watching tv or listening to music during lunch you may not be able to make that important business call at 3pm.

      --
      i thought once I was found, but it was only a dream.
    4. Re:So are iPods. by arminw · · Score: 3, Insightful

      ......no DRM lock-in....

      You mean different DRM locking, don't you? Do you think the **AA companies will allow DRM free stuff? I hope that France DOES pass their new law and many others follow suit. It would mean the end of all DRM. The companies would then learn that sales are even higher than before. Most people will pay for their things, rather than walking out the door without paying, especially if the prices are reasonable.

      --
      All theory is gray
    5. Re:So are iPods. by LMariachi · · Score: 3, Funny
      I work out with my phone, and still doesn't have to recharge it until at night.

      Well, that doesn't sound like a very strenuous workout.

  3. Ogg Vorbis support by CRCulver · · Score: 4, Insightful

    Funny, this post shows up right after I ordered an iAudio U2 after looking at the Vorbis Hardware wiki. Since Ogg Vorbis is the nerd's audio format, we nerds must have a Vorbis-compatible player, and Apple's offering, while stylish, doesn't have that. Unfortunately, a lot of portable Vorbis compatible players have limited storage size (mine is 1GB), but I'm never away from my laptop long enough to hear more than that much, and so can fill it up with new music when necessary.

    1. Re:Ogg Vorbis support by SonicRED · · Score: 3, Informative

      I purchased an iPod Nano last September and I now play Ogg Vorbis files on it every day without issue. I've converted my entire collection from Mp3 to Ogg in fact. Previously I was convinced that deviating from Mp3 would limit my choice of a player in the future but I no longer have that concern.

      The solution is Rockbox.

      MP3, OGG, FLAC, AAC, ALAC, AC3 and WavPack playback.

      You also get gapless playback, crossfading, a real EQ (not just presets) and ReplayGain support. Not to mention the rapidly growing collection of games and plugins and other random features such a real JPG viewer that doesn't require conversion. It also frees you from having to use iTunes or GTKpod or other software to interface with the player. You simply copy the files and folders over directly and navigate whatever file structure you choose on the screen (mine is /Artist/(Year) Album)/).

      The reality of the situation is that you're going to end up using Rockbox on your iAudio anyway. The Cowon firmware is pretty terrible and doesn't have a lot of the features mentioned above. This is the case with my friend who also ordered the U2. I paid $50 more for my Nano but got twice the storage space, a color screen, and a form factor that is ridiculously small in comparison. We both use Rockbox.

  4. Um.....no by ericdano · · Score: 5, Interesting

    Judging from what I have seen, no. Cell phone companies seem to want to LOCK people into buying songs over their networks. And, the two phones out that work with iTunes limit you to 100 songs. What would replace an iPod is an iPod with cellphone features. I don't need games on my phone. I like having the camera, but it is a pain to get pictures off it (I have a RAZR).

    Give me something like a Treo, except in the size of an iPod or RAZR and I'd be happy to donate my iPod with video to someone.

    --
    It's either on the beat or off the beat, it's that easy.
    I moderate therefore I rule!
    --
    1. Re:Um.....no by Sentry21 · · Score: 3, Informative

      I like having the camera, but it is a pain to get pictures off it (I have a RAZR).

      Just use the 'browse device' feature of your OS's bluetooth support and grab it out of /pictures/ - ten seconds, start to finish, I do it with mine all the time.

    2. Re:Um.....no by matthew.coulson · · Score: 4, Informative

      Fortunately, the Razr can be easily reflashed to enable all the good stuff.

      Not much good for the general public, but this is SlashDot, right?

  5. From TFA by ereshiere · · Score: 5, Insightful
    iPods themselves will have to become phones.

    Yes, and an Xbox will have to become a Playstation, lions will lay down with lambs, and Apple will be forced to give up on OSX and move to Windows.

    I have a phone already. I have an iPod.

  6. But, But, But ... by fastdecade · · Score: 5, Interesting
    Hasn't this "clone attack" been happening for years, from the likes of Sony, Creative, Archos, and others? What's different here, what the headline doesn't make clear, is that these are *phones*.

    The important quote is buried towards the end of the article:

    With digital music and video it will be Nokia, Samsung, Motorola and Sony Ericsson -- the mobile phone manufacturers.

    This year they will start releasing phones with the same storage as iPods -- up to 30 gigabytes. iPods themselves will have to become phones.


    One device in my pocket or two? It's a no-brainer if you ask me.
    1. Re:But, But, But ... by Anonymous Coward · · Score: 3, Funny

      Yep, my biggest complaint about my mobile phone has always been that the battery lasts too long.

      Now, if I used it to play MP3s as well - maybe I'd need to charge it every day.

      Fantastic.

    2. Re:But, But, But ... by Yahweh+Doesn't+Exist · · Score: 4, Insightful

      >will start releasing phones with the same storage as iPods -- up to 30 gigabytes

      that's half the storage of my *current* iPod. and I hope they're going to have support for podcasts, photos, videos etc.... actually, forget that, what about the chance that it'll even sync with my mac in the first place, let alone not requiring me to use it's own ugly little app that messes everything about?

      >One device in my pocket or two? It's a no-brainer if you ask me.

      twice the battery life in my pocket or not? imo it's a bad idea to converge devices that have different usage patterns. for example phone: always on, with occasional high usage, always with me. ipod: usually off with regular high usage, usually with me but I like being able to NOT take it everywhere. also, phone battery life can be important in emergencies, ipod battery life is just entertainment. my ability to use a converged device would be restricted by needing to ensure enough battery life remaining for emergencies; my ipod can run dry if I so choose.

      I'd probably get an iPhone, but not because it's a converged device, but because it'd probably be a very high quality "just works" phone with complete mac compatibility.

    3. Re:But, But, But ... by Ulrich+Hobelmann · · Score: 4, Insightful

      Sony? Ugh!
      Creative - weren't they the ones who didn't look good at all and were expensive?
      Archos? Whossat?

      iRiver: good devices, but the nice newer ones (like the H10 I almost bought) didn't have Vorbis support anymore, and I want at least one good format (AAC or Vorbis) to rip my CDs to.

      So that leaves: Apple.

      I don't own an iPod, only a humble cellphone with 30MB memory, but if I were to buy anything right now, I'd have to say Apple's competitors just don't cut it.

      But there's nothing inherent that says that in the future they couldn't build awesome devices.

    4. Re:But, But, But ... by masklinn · · Score: 3, Insightful

      Well, first of all the iPod market isn't about storage, the Nano (and former mini) segment wouldn't be the best selling iPod niche if it was. So the storage doesn't matter that much to the public, that's been proven.

      What did we see with the iPod? That what mattered was the interface. iPods are sleek, beautiful, and dead simple to use. A cell phone is, basically, a cell phones. I has a dozen keys already just for the phone functions which need easy access. You won't get a simple mp3 player interface on a cell phone, ever. And simple interface and stunning user experience is what the iPod is based on and what made it's success! Apple wasn't the first on the mp3-player market. It's never been a leader technology-wise (low number of supported formats, low number of functions), it's rarely been the smallest available, it's probably the less open player out there. But. It's. Easy. To. Use. And it just looks great.

      On top of that, cell phones are currently unable to feature near the autonomy they'd need. Add an mp3 player without changing the battery? You're looking at a 20h autonomy if you don't actually phone anyone there matey, looking forward to that? i'm not.

      --
      "The way we can tell it's C# instead of Haskell is because it's nine lines instead of two." -- wadler
  7. Obligatory by jibjibjib · · Score: 5, Funny

    Begun, this iPod clone war has.

    1. Re:Obligatory by jcr · · Score: 4, Funny

      Over, it is. Won, Apple has. When to quit, the others know not.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
  8. I Don't Buy It by neoshroom · · Score: 4, Interesting

    This year they [cell phone makers] will start releasing phones with the same storage as iPods -- up to 30 gigabytes. iPods themselves will have to become phones.

    This makes perfect sense. We all know cell phones are amazingly easy to use with simple and consistent interfaces. I can't wait to run out of batteries from listening to music so I miss important phone calls.

    There is also the consistent leapfrogging Apple seems to do. This generation of iPods might be able to be almost feature-matched by the next generation of cell phones, but by the time the next generation of cell phones come out the iPod will be a VCR/TiVO as well as a music player.

    I'm sure journalists then will be saying the iPod will die because the next generation of cell phones will play videos.

    __
    Elephant Essays - Custom-created essays and research papers.

    --
    Big apple, new Yorik, undig it, something's unrotting in Edenmark.
  9. "Killer app" by dotwaffle · · Score: 5, Insightful

    When will people get over the Killer App mentaility? The iPod wouldn't sell nearly as well without network effects. I'll explain:

    iPod connects to iTunes, which does an excellent job of managing your music.
    iTunes connects to the iTunes Music Store, which is a cheap(ish) and easy way to get tracks, as well as easily manage podcasts and subscriptions - if TV shows were available in the UK, I'd be using iTunes to get them, almost definitely.
    iTMS connects with pretty much ALL the major music companies, so that when you buy tracks from X, it suggests Y and Z, which you may be interested in.

    The combination of all of the above leads to Apple not only having market share, but DESERVING market share - their products are good, and if anyone comes up to me wanting to get into online music, I suggest iPod everytime.

    However, as others have said, Ogg Vorbis support should be in iTunes, and either converted within iTunes or playable on the iPod. I can't see it happening anytime soon though :(

    1. Re:"Killer app" by clifyt · · Score: 4, Insightful

      "When will people get over the Killer App mentaility? The iPod wouldn't sell nearly as well without network effects"

      Beyond your easy to use networking examples -- even if the phone companies dead simple to download the music, they have this inbred notion that ANYTHING you do on the phone should be at your expense and they should get a huge cut of it.

      For example, I found out my new phone could play MP3s...unfortunately, no way to get them on without buying them from my provider. Its a Bluetooth phone and comes with USB cables for computer connectivity. But getting files on to it? Nope. Actually, thats wrong -- I can get files onto it, but only as portable storage -- I can load up photos or delete the files that are already there (as I did the crappy MP3s), but not placing in the phones memory where I can retrieve them. I had to call the company to find this out after having difficulties -- and I was told that as this was a 'locked' phone, I would not be able to do what I needed.

      Along with this, I can for a small fee, rebuy the same song for my desktop. Oh yeah, you can DELETE the MP3 files you buy from their crappy store -- but not download them. Its not as much, the operator tells me, but I think I would have already spent twice as much as I would for the same iTunes based purchase (and maybe exactly the same to get it for my desktop). For some reason, the phone companies have convinced the content providers that one can get extended use out of these files and thus its got to be more expensive. Either that, or they take their 50% network fees cut even before they take their shared revenues on the content. And the file you can get for your desktop is I believe WMA -- which probably won't work on my Mac.

      Screw the phone manufacturers. So long as they are willing to provide the cell providers with locked phones, we are never going to see any innovation. They make far more money off of selling these directly to those retailers that have a vested interest in locking down our features then then ever will selling directly to the public -- why do you think the original iTunes phone took so long to get here -- because none of the cell providers wanted it (though apple's bullshit 100 song limit is just that, bullshit -- though rumor has it this may be lifted soon as they realize their mistake, but I'll believe that when I see it).

      Anyhoo...

  10. lock in by LetterRip · · Score: 4, Insightful

    That only works if they can work with peoples existing music collections.

    People have already bought a massive amount of music through itunes. Thus for those with an itunes locked in collection, it will need to be compatible with Apples DRM. So sony and motorola have to either partner with Apple, figure out a way to migrate Apples DRMed files to their service without an Apple partnership, or go after those individuals which have yet to purchase music through itunes, or who went with one of the competing services.

    LetterRip

  11. Re:Cry more please by nagora · · Score: 3, Insightful
    Waah! Competition is too risky! We want a monopoly instead!

    Er... Isn't that exactly what Jobs is saying by having private file formats and DRM?

    TWW

    --
    "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
  12. I won't hold my breath while waiting by somewhat_distant · · Score: 5, Interesting

    If they want to kill the iPod, they have to kill iTunes, the iPod and MusicStore in one blow. The iPod success is not just a result of better hardware. It's the whole package, the iLife integration, the fact that it simply works without any hassle.

    I organize all my music on my Mac, plug in the iPod, and whooops, shazam or whatever, it's all in my pocket without any technical fuzz.

    This may not be the right crowd to voice this opinion in... But in this case I don't want umpteen technical options, and I can live with Apple as a music industry near-monopolist. As long as it works. If someone does it better, fine. Good luck. A colleague just told me that he finally could use his iPod without iTunes due to some hack. Nice! To me, that is a solution without a problem.

    Techie stuff is work. Music is play!

    And I'm not waiting for an iPod-wannabe (aka iPod-killer).
    I'm waiting for something new.

    --
    -- somewhat_distant
  13. Problem.... by Chanc_Gorkon · · Score: 4, Insightful

    The problem is that battery's won't keep up with both devices. My Cellphone can last 3-4 days with moderate usage (although if I do mobile web on it, the battery usage goes up). If I used it as a MP3 Player which I can already do, the battery would crap out in an hour...

    To truely integrate a iPod and a cellphone, it would have to be as large as my last analog only cell phone which was quite large (I lived for a while without a phone). The reason is for the battery. The biggest thing holding a converged mp3 player and cell phone back is the battery. Only fuel cell tech or an advancement in bettery technology will drive this.

    --

    Gorkman

  14. Ogg Vorbis Plug in for iTunes by Anonymous Coward · · Score: 5, Informative

    There is a plug in for iTunes that enebles playback and encoding of ogg files

    http://www.illadvised.com/~jordy/

  15. Apple doesn't need Ogg Vorbis. by jcr · · Score: 5, Insightful

    The long and short of it is, unless you can point to a million customers who would buy an iPod if it supported vorbis, and wouldn't otherwise, it's simply a non-issue to Apple. You are a vanishingly small proportion of their potential market.

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."
    1. Re:Apple doesn't need Ogg Vorbis. by tpgp · · Score: 3, Insightful

      *sighs*

      I'm not sure if you're being deliberately obtuse or if English is not your first language....

      Anyway, a little lesson for you.

      How would you define "premier"?

      Words by themselves have meanings, but when you use words in sentences, they gain more meaning through context.

      So, saying "The premier nerd music format" is different to saying "The premier music format."

      So - what we're talking about is the music format geeks, prefer, reccommend, hack around and play with.

      I think that's probably mp3 (but I'm a geek who's interested in portability), the person you replied to might consider ogg to be the premier geek format (especially if they're say, games developers and don't want to pay a license fee for in game music, or any thing else that requires a cheap, open codec). Other geeks s, (like you presumably) would consider music quality the most important factor (altough most of the lossless camp are using flac or shn as far as I can tell).

      --
      My pics.
  16. Re:hardware matters little by NMerriam · · Score: 3, Informative

    On the contrary, Apple got this market precisely because it had/has the best UI.

    Argue whatever you like about particular pet features/compatibility, but Apple is #1 because they saw what an UI mess most MP3 players (both software and hardware) were and simplified them both so that normal people were capable of operating them without having to know anything about the underlying technology.

    Very few competitors have even matched the simplicity of operation, and none have surpassed it yet. Until they do, consumers simply aren't going to be interested in jumping ship without massive financial incentive. And I don't see how anyone can undercut the iPod by a significant margin given Apple's huge volume discount on parts and continued willingness to forego profit for market share.

    --
    Recursive: Adj. See Recursive.
  17. Why why why... by Anonymous Coward · · Score: 5, Insightful
    ...do people keep writing stories about iPods as if you could only put music from the iTMS on them?

    It says:

    "The only place you can easily buy material for your iPod, as opposed to stealing it, is the iTunes online store."

    and refers to it as a "closed system".

    Total nonsense. You can "easily by material for your iPod" on CD. Or, you know, from that dodgy Russian MP3 store.

    But it's by no means a "closed system". I have 2,000 songs on my iPod and a total of 12 are from the iTMS.

  18. A 'journalist' who drones on and on and on by ynotds · · Score: 4, Interesting

    According to Kohler's Wikipedia stub he has been at it for 35 years. He is ubiquitos here, turning up in the middle of our TV news with some of other spin graph to punctuate the too familar droning to the day's 'numbers'.

    He is trying to become his own industry, in pale imitation of the likes of Crikey who have actually been prepared to do the hard yards and enjoyed some deserved success. But I've yet to hear Kohler say anything perceptive. Certainly this piece lacks any suggestion of coherence.

    --
    -- Our systemic servants do not good masters make.
  19. Dear Mr. Alan Kohler by theolein · · Score: 3, Insightful

    Author of "Attack of the Clones", a.k.a "It's April 2 and I don't know what to write about, so I'll write one trashing the iPod and you can all listen to it on PODCAST which I advertise on the bottom of my page".

    When Nokia and Motorola make a phone that's as easy to use as an iPod (have you seen mobile phone menus?), is as simple as an iPod (have you seen mobile phone navigation?), is as reliable as an iPod (my brand new Sony Ericsson crashes every 3 days, my previous Nokia would crash every two weeks or so), with the battery life of an iPod (how long does your phone last while playing sounds? mine lasts about 1 and half hours max), the capacity of an iPod (this one I belive will happen sooner than the rest) and the tight integration with iTunes, which is god's gift to music store software and jukeboxes, then I'll believe an article that an Australian hack in Melbourne wrote on the day of the Melbourne Formula one.

  20. Sigh by SmallFurryCreature · · Score: 5, Insightful
    When your phone can hold 10-20 gigs your ipod can hold a terrabyte.

    Who needs that much space. Yeah right. I have heard that one ever since I bought a HD floppy.

    There have always been devices that do it all and there have always been devices that do one thing only.

    There are washing machines that can also function as a dryer. Funny thing, do you know you can still buy JUST washing machines + a seperate spin dryer + a seperate warm air dryer?

    Yes thats right, spin dryers still exist despite the fact that nearly every washing machine can do it that function nowadays. Just not as well as a true purpose spin dryer.

    Oh and the whole camera phone argument is faulty. NOBODY uses a camera phone as a replacement for a regular phone. The camera phone is the replacement of the throwaway/rented camera. Its function is to be always with you for those moments when you do not have a regular camera with you.

    In fact that is the function of all the extra's on the mobile phone. Games? Fun for when you got your phone but not a real game system. Calendar? Usefull for when you do not got access to your real calendar. Music? Nice for when you forgot your real music player.

    Offcourse some people will be happy with the limited capabilities that their phone offers them. Just as some people are happy with a 10 dollar MP3 player they got from the bargain bin.

    That is not Apples market. Apples market is what used to be the Walkman->Minidisc/CD-man market. They effectivly replaced sony for portable audio.

    Oh and if you think your phone MP3 players is not going to have DRM your insane.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  21. Ah another iPod killer story by SmallFurryCreature · · Score: 4, Interesting
    The poor old mobile phone is supposed to bloody kill everything on this planet while all it wants is to sit in your pocket and cook your testicles.

    Lets see: The article claims that this year phones are going to be launched with 30gb storage, the same as an iPod.

    Mmmm, what they really mean is that 1 phone is going to be launched, possibly this year, in japan, that is going to cost a fortune, eat batteries for lunch, not going to tiny while having the storage of the smallest 5th gen iPod.

    Doesn't exactly sound like it is going to sweep the market. In fact the mobile phone market is incredibly fractured with not a single manufacturer having the kind of market share that apple enjoys in the mp3 player market. Let alone that a single new model will achieve anywhere near the penetration that iPods have.

    Oh but there is the anology to the PC's where IBM clones pushed Apple into a corner. Yup that is true.

    Except that how does this relate to mp3 players? The "clones" arrived first in this case. It was the tiny asian "clone" companies that launched first and only later did Apple join the party and even later did the real big boys like Sony get involved. If anything this is the exact opposite of what happened with PC's. This would have like if Compaq and the other clones had their PC market gobbled up by IBM.

    For some reason when it comes to IT most people seem to loose common sense. Surely we all here remember how the N-cage was supposed to take over? Nintendo better watch out with its GBA.

    Didn't happen.

    Some people point to camera phones as to how the mobile phone can replace single purpose devices by combining them into the phone.

    Except that this did not really happen. The camera phone did not replace regular camera's. Or do you really record your kids birthday party on your mobile phone? No the quality seperate camera market is still there. What the camera phone replaced is the throw away camera and incredibly cheap, good for 1 holiday, market. What it mostly did however was expand the market. There are now simply more cameras about then there were before.

    I think the same will be true for mobile phone MP3 players. They will partially replace the very cheap players and partially expand the market so that people who never owned a portable music player before will have one now.

    The iPod is as threathend by the mobile phone as the SLR camera is by the camera phone. Or the GBA is by the N-cage. Or the computer is by the PDA.

    Offcourse the PDA is under threath by the smart phone and one day it may be true that the mobile phone will be so powerfull that it can replace the iPod. Looking at current tech I think that is still years if not decades away.

    But a headline off "Business as usual" does not sell ads does it now.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  22. Re:Cry more please by ImpactedColon · · Score: 4, Interesting

    "Nope. Apple doesn't have a monopoly. They simply have no competition."

    This is not accurate. Apple has a potential monopoly because they have secured almost 90% of the market and refuse to license their DRM. That's monopolistic behavior. Can you imagine if Microsoft, with their massive market share on PCs didn't license WMA/WMV, and insisted those formats be used with its systems?

    It's important to separate logic from fanboy rose-colored glasses. Apple has made an incredible product, but has already been slapped in France (who cares, I know), and the US judiciary has already approved a motion to go forward with antitrust action against them if someone should so choose.

    The question for Apple is this--if they open up their DRM, will people still buy iPods? I think the answer is absolutely yes, and they should stop being so stubborn about something that could potentially cripple them in the courts. If they thought scratch-tastic Nanos were an annoying issue, hundreds of lawsuits around the world will be worse.

  23. Your childish insults add nothing to the thread. by fmaxwell · · Score: 3, Interesting

    Instead of making ad hominem attacks on everyone who disagrees with you, why don't you add something of value to the discussion?

    The iPod has dominated the personal music player (PMP) market since its introduction in 2001. In this quarter alone, iPod sales are expected to approach 9 million units.

    With sales numbers like those, it's easy to see why other companies have been trying (unsuccessfully) for the last five years to take market share away from Apple. It's equally easy to see why Apple has the R&D budget to stay one step ahead of its rivals.

    What you don't seem to grasp is that the iPod devices drive music sales on iTunes. Apple can afford to break even or to lose money on each iPod sale because the average iPod buyer loads the iPod up one $.99 song at a time through iTunes.

    To compete with Apple, a company would have to develop an business model in which PMP sales were subsidized by later music sales. That means creating a viable iTunes competitor. So, how do you convince the record labels to sign on with your music store and how do you get prices from them that are as good as what they give Apple? You don't have an installed base of millions of PMPs, so they aren't looking at a tempting market that they need to reach. Many other companies have already tried to compete with iPod and failed, so what makes your venture more likely to succeed?

    But let's suppose that you have pictures of all of the major record execs having sex with donkeys and that's how you get the same music availability and pricing that Apple does for iTunes. Now how do you convince your company's management that you can out-iPod Apple? How do you get them to give you the massive sums of R&D money needed to build something that is as pleasing to the consumer as the iPod? How do you make them believe that your efforts will be any more successful than those of Creative Labs, Archos, Samsung, SanDisk, or the myriad other players, most of which came and went with little fanfare?

    Now how do you convince your vendors to provide you sweet deals on everything for lithium-ion batteries to headphone jacks? How do you get the prices for components that Apple does? Toshiba knows that they will sell 30+ million hard drives through Apple, so they are willing to give Apple the best pricing possible. How do you propose to get that kind of pricing? By saying "we're going to sell a lot, too"?

    I've owned personal music players from Creative Labs, Rio, and Archos because I was loathe to give Apple my money. But the fact is that the other players were large, clunky, and poorly constructed when compared with the iPod offerings. Go into any Best Buy and look at the personal music players. The iPod simply looks like a product from five years in the future when compared with the competitors.

    While I expect that some well-heeled competitor will come along to challenge Apple, I don't expect it to happen soon. The only way that I see it happening anytime soon is if a court rules that Apple's iTunes/iPod bundling is illegal and orders Apple to open up its DRM and allow competing products to use iTunes for music purchases.

    Hopefully, that was a lot more thought-provoking than the "Waah!" stuff that you posted.

  24. iPod is safe by ZoneGray · · Score: 4, Insightful

    Apple is so safe with the iPod that it's not funny. Just look at how many people they're licensing the dock interface to. It's available in new cars, in aftermarket cart stereos, it's in all kinds of accessories. The prevalence of the dock connector simply makes the iPod more desirable than its competitors, and the fact that it's proprietary gives Apple a lot of safety.

    Microsoft has implemented their "play anywhere" USB interface, and some car stereo makers are starting to implement it. Eventually, it will provide an alterenative to the iPod dock, but it looks to be somewhere in 2007 before it achieves any uptake.

    The catch is that the "generic" MP3 player makers will be fighting each other on price, while Apple will be able to maintain much better margins on the iPod. So the iPod will eventually drop some market share, but it will remain profitable for Apple. Meanwhile, Creative and iRiver and all the others will be beating their brains out trying to undercut each other.

    He who owns the interface owns the market. I didn't say it's good, it's just a fact of life.

  25. Easy to use software *IS* special! by tlambert · · Score: 3, Insightful

    Easy to use software *IS* special!

    "Do people really think that apple having "easy" to use software is so special? Nothing Apple does is really all that unique, it's just a matter of quantities of production and spending the time to develop the interface right."

    And that *is* unique. The UI on most cell phones suck. I don't know one software engineer with a cell phone who wouldn't pay a reasonable amount of money to get the firmware source code - even if only for the UI part of things - so that they could hack a decent UI onto the thing.

    I haven't seen one cell phone with a decent UI (or I'd own the thing, no matter who I had to sign up with to get it).

    -- Terry