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I'm surprised Salkever's article didn't mention Apple's deal with Founder (China's second-largest PC vendor, which will pre-install iTunes on all of its PCs), and how this could drive iPod sales in China, while furthering the iPod's global market share:

http://news.com.com/Apple's+iTunes+software+heads+to+China/2100-1041_3-5215000.html

"Too bad their assumption is off base"

Naturally, the best way to analyze someone else's assumptions is to promptly invent a set of them yourself.

There can be no doubt that Apple's currently apparent strategy for iPod is ultimately untenable. It really requires being way out in front all over the world to capture the leading edge of the market. They have, of course, done tis in some areas.

I've got to beleive that, like a good footbal player, they are about to twist away from the gaining hords of competitors by introducing a new tactic that makes their products available to more people OR new product extension that changes the game.

What our favorite pundit, Mr. Enderle, and others of his ilk fail to see is that Apple is about using innovation to change create and change markets. Recall that Apple's first contribution was creating a market for PCs. That is their strength. Competing on Dell's terms, for example, is of no interest.

As we see with XServe, Apple is starting to go back to the business market - but by marketing to the weakness of their competitors -- raw power to get attention but essentially, ease of administration and righteous security.

MS will soon launch its music service with a $50 music player that's just as good as the iPod, 1/2 of what Apple charges to replace an iPod battery. MS will sell the players at a loss, just like it's doing with Xbox, to quickly crush iPod sales.

With Apple's iPod profits gone, Apple won't be able to hide its money-losing evaporating Mac business. Apple's stock by early next year will be less than $15.

Check the facts:
http://www.denverpost.com/Stories/0,1413,36~33~2174543,00.html

Don't the MP3 CD players (most CD players out there now) have the chips that he is talking about in them? I'm also fairly sure that 99% of that market doesn't use that feature at all, so it can be a significant distortion of the numbers.

It will be brown and steam will be rising from it.

It's hard to shake a stick at 80% off! 50 bucks? Sign me up.

We'll have the real story on this MS development in the morning. That's all I'll say for now.

Bryan
Editor
TMO

and perhaps MS will offer a $50 blowup doll and thus destroy womankind?

i don't usually care for wasting of time by posting gratuitous snipes but

I am moved to applaude the critical fullness of Guest's comment.

Okay...but here's then catch you also have to lock yourself into a 3 year subscription to Ms's iHits which will only cost you $9.99 a month. You can listen to unlimited music within your home or car. No you don't really own the music you just rent it. If you want to ownt it that will cost you extra. The you will be able to play it on up to 2, YES! 2 whole computers & burn it to 5 CD's. Why don't you just let me kick you in the nuts (if you are a guy) right now...free of charge. After all it will pretty much have the same effect on you & won't cost you a dime.

As a Mac user in Malaysia, I can second your comment about the "comparatively exorbitant prices for Macs" and iPods here and why cheaper alternatives will rule the market. Unfortunately.

I almost never see any MP3 player except the iPod.

how do you assess apple's global performance

If Microsoft sells that MP3 player, we should all buy one and bleeds Microsoft's cash hoard to zero. Success = Death if selling below cost without compensating revenue.

I realize that the article is outdated. Published in May 04. In any case, is nice to know that there is plenty of room for Apple to grow. The latest figure is iPod has 32% of global MP3 player market. Wow, 68% more to grab. Based on Amazon.com's top sellers, all variants including older models of iPod are selling very well. Apple could have sold more than last quarter's record of 4.56 million iPods.