08/10/2006, 2:10pm, EDT
Thursday, August 10th
Nokia on collision course with Apple
With rumored discussions between Apple and other carries for over-the-air iTunes, Nokia is hoping its Loudeye purchase will help it sway wireless carriers as they turn to music download services, a $400 million market last year that is expected to take off and reach $14 billion by 2011, according to U.K.-based Juniper Research.
Nokia's response to iTunes
"Nokia already sells as many music phones as Apple sells iPods," says Albert Lin, an analyst with American Technology Research told Newsfactor. "And the market for music phones will be larger than the market for stand-alone music players. The bulk of music-playing devices sold is likely to be the cell phones."
The move has put Nokia on collision course with Apple. According to the report, the Loudeye acquisition gives Nokia a catalog of 1.6 million tracks Nokia has more content rights to local music globally than any other music distributor in the world -- including iTunes.
Filed under: industry
Other story tags: digital music/video
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In the US, The #2 carrier (Verizon) Sells 0 Nokias. The #1 Carrier (Cingular) sells only a few models and they are not that popular at all.
Just curious where the Nokia sales are - you hardly see anyone carrying Nokia any more.
One other thing; they said they sell more 'music' phones (mp3-capable) than Apple sells iPods. Anyone field a guess how many of those music phones actually play music (other than mp3 ringtones already built-in)? Mobile phones are an enourmous global makret. The people buying them use them to - surprise! -- make phone calls! I wouldn't be surprised if only one in 8 people owning these music phones actually knows how to use the mp3 player. In addition, Nokia is positioning itself here between the consumer and the carrier. Carriers won't like this; they'd probably prefer to run their 'iTMS-killers' themselves. Nokia might be a challenger here, but Apple still doesn't have anything to worry about.
Could work out, but so far the music phones haven't been that great & I can't imagine that they would be all that fun to find/ buy music on. I wouldn't be surprised if this wasn't Nokia's first choice, but they felt that had to make a move before apple comes out with their ipod/phone & steals away the market, like they have from real/napster/yahoo music/ walmart/ etc.
Sorry don't think so bubba, people don't use phones for listening to music. How about getting a phone that's really good for talking, what a novel idea?! Especially since that hasn't even been accomplished yet by this industry.
lol.
Pros: Download over-the-air is very nice One device to carry Voice telephony Instant messaging Walkie-talkie Pause music on call receive Send MP3 clips to your friend (nominal fee!) Songs as ringtones Builtin camera / video recorder
Cons: Current iTunes collection won't transfer Phones are so disposable (transfer songs?) CLUNKY! The suck to work out with (size/weight) Battery life? Poor movie playback Not a platform (3rd party add-ons)
Please add to my list.
This harks back to the time when Nokia was experimenting with new 'designs' resulting in phones that weren't easy to use, or doing much for calling... and a resulting slide in marketshare (back when SonyEricsson ate their lunch).
The renewed push towards feature-rich phones allowed them to regain lost marketshare, but it seems that now they are going to distract themselves, again, from their core business - making phones.
Personally, having a Nokia N70 (and covetting an N80 or N73), I really like their phones for the multimedia features (camera and video), but care little to not at all for the music player. Based on my observations, people that are status obsessed will have a Nokia, but also an iPod - and unless the Nokia phone has a similar ecosystem than the iPod (tons of accessories in support of the music players), I don't see them having ANY impact. So far, the gamut of their 'accessories' is limited to custom headphones with proprietary connectors...
'nuff said.
This isn't a threat to Apple and the iPod.
Oh, wait a minute...