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San Antonio, TX, United States, 03/31/2006 - Everything about the design of the iPod, be it its diminutive size, sleek design or intuitive controls, has made it an instant success in the consumer market helping Apple secure more than 70 percent of the North American market share. Since its launch, Apple has revised its line of iPods several times and with each new generation came a better look, new features and a sleeker design, enhancing the experience of the iPod owner.
Apple has become a poster child for the digital entertainment market since the debut of iPod and iTunes, by providing the market with the most sought after portable music and now video player, complimented by an online store with a large amount of content. Apple has received a much-needed boost in the market and further solidified its cult like legacy for design innovation.
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“iTunes might not be the only solution to stop people from buying pirated music, but it has undoubtedly brought a transformation in the way digital entertainment is made available to customers,” notes Frost & Sullivan Research Analyst Zippy Aima. “Along with the advantages presented through the iPod and iTunes, combination is also a significant threat.”
Due to its popularity, the iPod has also spawned a potential threat to the very content it aims to protect and monetize.
Furthermore, the device itself is a double-edged sword that poses the danger of cutting into the profits of the content owners. Increasingly consumers are using the iPod not only as a player for iTunes, but also as a player for content from other sources, legal as well as illegal.
“The success of iPod is evident from the fact that Apple sold 1 million units of iPod Nano and 1.8 million units of iPod shuffle in 2005,” observes Aima. “In 2005 less than one percent of content on all available storage through iPods was used up by iTunes content. Where is all this excess storage going?”
Still in its very early days, the success of the iPod and iTunes have also shown gaping holes in the present model that need to be fixed - the ability to store and play illegal content. On the flip side, Apple might endanger its popularity by actually filling the gap as many users have huge amounts of content gathered through questionable sources.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
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