Music phones to hurt iPod growth
updated 03:10 pm EST, Fri March 3, 2006
Phones to hurt iPod growth
A recent analysis by Reuters India suggests that Apple's biggest competitor may be mobile phones with the ability to play music, rather than other digital music player manufacturers. Sales of mobile phones that can store and play back music are climbing, which industry watchers say could dent the MP3 player market potential. "You have the ability to talk, take pictures and listen to music in one device. The convenience factor is big," said Simon Leung, senior vice president of Motorola Asia. Kirk Yang, a managing director and technology analyst at Citigroup's Asia Pacific operations, believes Apple will probably unveil an iPod that will function as a cellphone later this year in response to the music phone offensive. "The iPod with phone functionality is going to be a category killer," Yang said. [updated]
Analysts believe that Flash-based devices which store up to 1,000 songs are the most vulnerable to swelling music-enabled mobile phone sales. "The music phone is not going to significantly impact the high-end, high-capacity hard disk market but it will certainly have a major impact on the low-end flash market," said Peter King of Strategy Analytics.
Another analyst believes music phone sales could have the greatest impact overseas. "In Asia, there is a huge status symbol with the mobile phone where folks don't really think twice about spending $500 or $600 to buy the latest mobile phone but are not willing to spend $200 or $300 for an MP3 player," said Claudio Checchia of research firm IDC Asia Pacific.
I'm for it.
03/06, 10:21am reply
I'd love a cool mp3 phone like the Sony Ericsson line of phones. I'm just waiting for the W810. It would be cool if it integrated with iTunes but the convienence of an all in one device is great. If I'm going to spend $200-300, I might as well get a phone that can do it all. I'd own 2 iPods but for the gym and hiking it doesn't do any more than play music.
With the W810, I can play music, take calls, listen to FM (for the gym), take decent pics (wouldn't do it that often but it's there), and it's all in one device.
Tell me you wouldn't be excited about an Apple branded phone. The Sony Ericsson W phones are the closest thing.
benhur
Fresh-Faced Recruit
Joined: Jan 2001
Apple will do this
03/06, 01:35pm reply
when it's market research shows people are actually buying a "music phone" INSTEAD OF an iPod (in significant numbers). Apple is smartly letting Motorola take the risk first with its iTunes-enable phones.
It's just like subscription-based music service... Apple will release it own service as soon as Apple sees that people are actually buying a non-iPod music device, just to be able to use a competitor's subscription-based music service, which at this point is probably never (or not any time soon). I'd say an Apple phone is more likely, but how soon will be based on demand for such devices.
kw99
Fresh-Faced Recruit
Joined: Nov 2001
iTunes integration
03/07, 09:43am reply
"It would be cool if it integrated with iTunes but the convienence of an all in one device is great."
For iTunes-integration of third party music players (such as the Sony Ericsson Walkman phones), you might want to check out iTuneMyWalkman: http://ilari.scheinin.fidisk.fi/itunemywalkman/
Sälli
Fresh-Faced Recruit
Joined: Mar 2006
A looong time from now
07/07, 02:53pm reply
This may be the future in east asia, especially in S.Korea where they enjoy using a single device to accomplish many tasks, but it will be quite some time before this really goes anywhere in the U.S.
Do a comparison between cell usage in Japan and the U.S. - especially content and technology. The $80.00 cell phone my friend picked up in Japan this last year is eaisly years ahead of ours...and it was cheap. By the gods, Sprint is charging hundreds of dollars for their camera phones...of lesser quality.
lamewing
Forum Regular
Joined: Aug 2004