AAPL Stock: 107.72 ( -5.04 )

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iPod success poses problems staying atop industry

updated 09:55 pm EDT, Tue May 4, 2004

Cay iTunes stay atop?

The runaway success of the iPod for Apple--one that "the computer maker has not had in years: how to remain the market favorite, not just the favorite underdog....But now Apple faces a renewed push by Microsoft, which wants to shape the digital standard for music on the Internet, raising the risk that Apple could again fail to hold early gains in a fast-growing market, analysts said. 'The ultimate risk is that they do get marginalized, just like they did in the PC area,' said [analyst] Phil Leigh...But Leigh and other analysts said that if Apple falls behind in innovation -- one of its strongest suits -- or loses market share to cheaper MP3 players or fails to carve out a niche in digital music players for automobiles, its early lead in digital music could be imperiled."

by MacNN Staff





  1. zzimbob

    Joined: Dec 1969


    More FUD

    More FUD from people who either a) don't get it, b) are scared of Apple's success and are trying to do anything to counter it doubt, or c) have nothing worth writing that anyone wants to read, so they pull out a variation on the old "beleagured Apple" theme. As for Micro$oft's new DRM, renting films is one thing, but no way I'm gonna use some rental-type feature for music. I want my music ready and with me at all possible times. Anyway, you know that the M$ DRM is going to be hacked left and right.

  1. cmoney

    Joined: Dec 1969


    sad but true?

    i have a feeling that if apple slips up with the ipod/itunes and anything drops off, AAPL may pay the price, regardless of how well the computers do.

    even though: their computers still make what, 3x the revenue, and the success of the ipod has not as yet translated into increased cpu sales, i think investors are putting a lot of weight into the ipod/itunes if only for its potential.

    and while he may be right when he said "it just wouldn't be worth it" (about the real issue) i would hate to see jobs' hubris be the cause of its failure as well.

    anyway, i think this is the first doom and gloom story that i can't dismiss outright, because it's definitely a possibility, and apple's got a history of arrogance.

  1. bashar

    Joined: Dec 1969



    Apple needs to license its technology to consumer devices, there are lots of new DVD players, car stereos that are capable of playing WMA, apple needs to open up in that regards........

  1. Wutzo

    Joined: Dec 1969



    True. Apple hat to License the technology to consumer devices!

    The technology here is the QuickTime Media Layer. All the stuff (AAC codec and FairPlay DRM) is handled by QuickTime (applies to Mac OS X and Windows). There are some digital cameras with a QuickTime logo since they generate .mov's. Why not car stereos, dvd players, cd players with a QT 6.5 logo?

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