Mobile music services threaten Apple, iPod dominance
updated 01:00 pm EDT, Mon July 4, 2005
Threats to AAPL future
The future of Apple and the future success of the iPod , as the cell phone industry preps its own mobile music services. A new Wall Street Journal report says that despite the growth and success of the iPod/iTunes industry, "Apple's polishers seem to be missing a looming threat: Wireless-phone companies are teaming with the music industry to make most mobile phones into music players. While optimists think Apple could sell 45 million iPods next year, mobile-phone makers will sell more than 750 million handsets. All those phones could weigh on the iPod's growth prospects -- and Apple's premium stock valuation. Cellphone users won't need to lug around a second gadget to have their music..... With the rollout of full-track music download services in the next 12 months, the wireless phone could become the music industry's biggest and most profitable distribution channel." [paid subscription required]
Fresh-Faced Recruit
Joined: Dec 2001
old news
Yeah, yeah, I'm sure there will be some initial impact on iTunes/iPod sales. But after all the costs are counted, and the functionality is evaluated, I think the iPod will retain it's position. It's become an established part of most people's lives as well as a status/fashion symbol, and that will be hard to overcome for the phone companies, who enjoy the lowest consumer satisfaction of all personal service providers. Besides, there a good chance Apple will be a part of the whole deal, with branded and licensed phones that use the iTMS.
Apple shocked so many people with its instant domination of the market, so it's natural to speculate on who or what will topple them, but they've already met all challengers to date and have not only survived, but thrived. I don't see much of a change coming in the near future.