Apple iPod To Remain Market King For The Time Being - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Apple iPod To Remain Market King For The Time Being

The popular Apple device shows no signs of losing momentum, researchers say.

Apple Computer's iPod digital music player is not expected to lose significant market share in the next 12 to 18 months, despite the challenge from Microsoft's upcoming Zune player, a market research firm said Wednesday.

The popular Apple device, which accounts for more than three quarters of portable music players sold, shows no signs of losing momentum, having conditioned users to expect and buy regular upgrades, JupiterResearch said. Strong design and ease of use is also helping to keep sales strong.

As a result, Apple is expected to hold on to its dominant position in the U.S. market for the next 12 to 18 months, JupiterResearch analyst Michael Gartenberg said. During that time, Apple is expected to remain strong against competition from Microsoft's Zune, set for release in mid-November, and from music phones.

"It's Apple's game to lose," Gartenberg said. "But there will be constant pressure on Apple to innovate and refresh the product line to continue capturing the hearts and minds of consumers."

Microsoft is expected to become a serious threat over time, but it will take awhile for the company to gain traction in the market, and deliver products with features capable of luring customers from Apple, Gartenberg said.

All the players will have to deal with changing market conditions, such as the ongoing shift from early adopters who tend to purchase multiple devices and upgrade regularly to more mainstream consumers. By 2011, the number of people with portable music players is expected to top 100 million from 37 million this year, JupiterResearch said.

In 2009, the number of mobile phones that can play digital music is expected to surpass the number of music devices. Those numbers, however, do not mean that a lot of consumers will actually be using their phones to download and listen to music.

Slow downloads, incompatibility among devices and services, high prices and difficult user interfaces are expected to hold back over-the-air music purchases, JupiterResearch said. In addition, wireless carriers are failing to provide consumers with the means to store their music collections on their phones, a move that would boost usage of the devices. The reason for the lack of enthusiasm is carriers can't charge for the feature.

"We don't see the music phone displacing the music player anymore than the camera phone displaced the digital camera," Gartenberg said. "We see these devices as complementary to each other."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
Register for InformationWeek Newsletters
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll