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News
Fortune: Still Room for iPod Rivals
Sunday, October 7th, 2007 at 4:00 PM - by John Martellaro
The iPod and the iTunes Store have been enormously successful, however, the absolute market penetration of the iPod isn’t nearly 100 percent, and rivals believe there is still room for an an assault on Apple’s dominance in music and video, according to Fortune on Monday.
Richard Sikilos pointed to some of the cracks in Apple’s armor: the change in contract terms by the Universal Music Group to stay on a monthly "at will" status, the disagreement with NBC over the price of TV shows, and the renewed effort by Microsoft with its second generation Zune.
While Apple holds an impressive share of the portable music player market, 70 percent, Mr. Sikilos pointed to the absolute numbers. Perhaps only 60 million Americans own iPods. Comparing that to mobile phones, the author concluded that, "In short, the iPod’s numbers mean that MP3 players have not achieved must-have status for most people."
Those numbers give hope to rivals, especially those in the video business who want to slow down the Apple iTunes juggernaut while they can. Companies look at Apple’s success, Apple’s market cap, and believe that there’s money for them to make as well.
Even so, market cap envy and competitive fervor is one thing. Executing as Apple has is quite a different story.
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