Apple introduced their revised versions of the iPod, nano and shuffle last week. The good news is that capacities are up, prices are down and the shuffle is now deemed to be the “world’s smallest digital music player “. While most reviewers liked the idea of getting a better product for less money, they regard the changes as an evolutionary yawner rather than revolutionary. Indeed, The Times takes Steve Jobs to task not only for these modest product changes but also for a lackluster personal performance, dissing the entire keynote as a damp squib.
The good news for Apple is that these new iPods will likely increase their profit margins as well as Apple’s 75% share of the MP3 player market, at least in the short term.
The bad news is that when music phones and converged devices such as the Samsung SGH-i310 are taken into account, Apple’s total music player market share is only about 14% and declining, as outlined in the provocatively titled “Demise of a Darling: iPod market share crashes to 14%“. The long-anticipated Apple iPhone, expected to be available in 4-6 months, should win back some of that share – in I came, iPod, iPhone, The Economist opines on why the iPhone has been delayed, and echoes the suggestion of others that Apple become a mobile virtual network operator.
A damp squib from Apple’s Mr Incredible – The Sunday Times, September 17, 2006
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{ 2 comments… read them below or add one }
“Damp squib?” Not sure what it means, but ouch! I’ve got to start using that insult myself.
I think the smaller size and cheaper price constituted more than just modest product changes.