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Analyst: Apple Could be "Microsoft of music"

by , 8:50 AM EDT, July 28th, 2004

Merrill Lynch analyst Steven Milunovich told clients Tuesday he believes the recently announced alliance between Apple and Motorola could turn Apple into the "Microsoft of music" and make the iPod the "defacto standard in digital music."

Mr. Milunovich said the Motorola alliance is a "net positive for the iPod"

"Although we expect Motorola music phones to have 0.5GB of memory for songs by the end of the year, this is a different market from the 4GB iPod mini or 20 and 40GB fourth-generation iPods," he said. "Getting users to try iTunes on their cell phone introduces them to portable music the Apple way."

iPods are the leading portable music player, iTunes is the leading online music seller, and it appears Apple understands it has to work with others to dominate the space. Apple could become the Microsoft of music."

Mr. Milunovich also wrote that the effect of RealNetworks' new Harmony software to allow its music to be played on the iPod is still uncertain and could result in legal action by Apple

"Real could boost demand for the iPod but reduce music store sales," Mr. Milunovich said, adding that he's waiting to see if Apple will sue RealNetworks.

Observer Comments

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Close Name:Small White Car Posts: 1937 Joined: 02 Jul 2004
Subject: Was that the best...

Was that really the best they could come up with? The "Microsoft" of music? Don't they know how much that bothers us nerds?

Couldn't they call them the "Jell-O" of music. Or the "Kleenex" of music? How about the "Coke AND Pepsi" of music?

See, there are so many better ways of saying it.

View Name:Guest
Subject: whatever...
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Subject: Mac Morons
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Subject:
Close Name:Small White Car Posts: 1937 Joined: 02 Jul 2004
Subject: Oh fer..

WOW. THREE guest in a row with no sense of humor. Let me ask you something, did you not UNDERSTAND my joke or did you just not think it's funny?

I dunno... #1 doesn't give much clue we'll just say he thinks it's not funny.

#2 is tricky...he's making his own joke...but does he think it's continuing my joke or does he think his is the first joke? I'm just not sure.

And #3 seems to analyze it in a very technical way so I'll have to go with "didn't understand" that it was a joke.

View Name:Guest
Subject: microsoft of music
View Name:Guest
Subject: From the what thuh?... dept
View Name:Guest
Subject: I want to be the microsoft of movies
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Subject:
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Subject: mac
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Subject:
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Subject: Appropriate Title
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Subject: Re: Oh fer..
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Subject: Appropriate Title
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Subject: iPod the superior product?
Close Name:Billy K Posts: 297 Joined: 06 May 2004
Subject: In Defense of a Small White Car

He has a point, and all the Anonymous Cowards need to register.

His point was, Microsoft has so many negative connotations, it was a bad attempt at using shorthand to explain a market position.

His other point (Kleenex, Jell-O) was about product names that become synonymous with the product category. "Zipper" is actually the brand name of a fastener, just as "Q-Tip" is one brand's name for a "cotton swab." However, everybody calls them Q-Tips, Kleenex, Zipper and Jell-O, because they're so ubiquitous, they've taken over the category's idnetity.

Feh - you're probably not following me, either (any Marketing people out there? Hello).

Let me put it this way - when people stop calling them "MP3 Players," and just start calling them all "iPods" - like every personal cassette player is now a "Walkman."

Bah. Nevermind.

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Subject: re: iPod Superior
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Subject: bah
Close Name:Small White Car Posts: 1937 Joined: 02 Jul 2004
Subject: Thank you

Thank you Billy. I'm glad someone gets what I was trying to say.

And as for "getting over it" ... well NO. I make a post and then get followed up with 3 NAMELSS posters who critisize and belittle me and I'm not supposed to respond to that? Maybe if they had names I could treat them with a little more respect, but for all I know it was all one person coming up with different ways to make fun of me. I see no reason to "get over" that and I'll continue to mock people who mock me.

I'm sorry if you think that's humorless. I think it's kind of funny, really, but that's just me.

Close Name:Gethere2 Posts: 2 Joined: 28 Jul 2004
Subject: Ipod and Motorola

A phone with music in it? We've been there. But back then it was all for free. We called it radio! And guess what they played music you didn't know existed. And they gave news every hour.

That's what drives change, not repeating what you heard before. That's autism.

View Name:Guest
Subject:
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Subject: Is this the same iPod...
Close Name:Small White Car Posts: 1937 Joined: 02 Jul 2004
Subject: It can

The battery can be replaced. It costs $100. That may seem like a lot but that's what the batteries for my camcorder cost so it's a pretty normal price for that kind of battery.

View Name:Guest
Subject: Batteries
Close Name:Billy K Posts: 297 Joined: 06 May 2004
Subject: What the Hell?

What the hell is going on today? Did we get linked by some MS/Dell fansite? I've never seen so many nameless trolls in one day. Maybe RealityCheck lost his account privileges.

Is that you, RealityCheck?

And, OK, I'll give the troll a snack...

Quote
Guest wrote:
When's the last time you had to send your camcorder to the manufacturer to replace the battery? They don't think you're an idiot, why should Apple?


You don't have to send it in. If you know your way around a screwdriver, you can do it yourself. But common sense (look it up at dictionary.com) tells us, in order to make a device as small and compact as an iPod, the battery is probably pretty well integrated into the guts, so a lot of people wouldn't want to do it themselves.

Now go away, nameless troll cowards

Close Name:Small White Car Posts: 1937 Joined: 02 Jul 2004
Subject: Uh huh

Let's see.. I:

* Made a joke about Jell-O
* Got annoyed at people who didn't like my joke
* Said that you can replace an iPod battery.


Whoo, guess one of those really pissed you off. I wish I knew which one, but alas, none of them seem very offensive. Oh well, who knows?

Close Name:andrewspada Posts: 1 Joined: 28 Jul 2004
Subject: Indeed

Most definitly since the iTunes music store is getting acolades from everybody and the iPods just keep getting better. It's only a matter of time before they jump into movies as well but will a movie store also come with an iPod for movies as well? Apparently there seems to a huge demand for such a device but I personally wouldn't buy it since I just watch dvds on my laptop and I find the idea of watching movies on a tiny little screen appalling.

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Subject:
Close Name:ctjbush Posts: 4 Joined: 12 May 2003
Subject: Yankees of Music

Although I hate the Yankees, they are the best organization.

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Subject: clever ;)
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Subject: "Nameless Trolls"
Close Name:ivanii Posts: 1 Joined: 28 Jul 2004
Subject:

Quote
Small White Car wrote:
Was that really the best they could come up with? The "Microsoft" of music? Don't they know how much that bothers us nerds?

Microsoft is quite precize description of what Apple does now. It is using anticompetive moves in order to monopolize market. The only difference is that Apple has that fancy image, so many actually don't mind about this.

Apple could at least licence it's music format to others so that they can build their players that are compatible with Apple. If Apple is better, he would still keep its market share. Also this would allow other stores to sell their music for iPod. There are different people and it is quite obvious that they may want to shop different music through different shop interfaces. But Apple does not do that, as it does not want any competition!

View Name:Guest
Subject: I have music from many online stores on the iPod
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Subject: linkage
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Subject: weirdos
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Subject: Supported formats
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Subject: Drunken Trolls
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Subject: Well said
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Subject: coke are neck and neck?
Close Name:Small White Car Posts: 1937 Joined: 02 Jul 2004
Subject: You're right

Quote
Guest wrote:
i still think that anyone who markets a portable player, a desktop player, and a download service will trap the masses. i have 8,000 legally ripped mp3's for my personal use and for DJing, yet no one has convinced me to buy their MP3 player yet. i still have the impression that people with iPods dont have anything good to spend their money on, and the everyone i see will NEVER come close to using the full capacity of those things. i know people who have the Zen, the Dell player, or the ipod, that have MAYBE 500 songs on them...so wasteful!!

stupid mindless masses...


You are totally right. That's why I got a mini iPod. 4 GB is more than enough space. I don't even use all of that.

But I make good use of it. I ride the subway 2 hours every day. Even with newspapers and books it can get boring. My iPod has kept me entertained and that's all I ask of it.

Close Name:Engine Joe Posts: 412 Joined: 29 Jun 2004
Subject: Re: You're right

Quote
Small White Car wrote:

You are totally right. That's why I got a mini iPod. 4 GB is more than enough space. I don't even use all of that.

But I make good use of it. I ride the subway 2 hours every day. Even with newspapers and books it can get boring. My iPod has kept me entertained and that's all I ask of it.


I've filled my 30 GB iPod completely and have thousands of AACs and MP3s to spare. I may not be the average user (don't know), but I just don't get this argument. I would suffocate and die under a 4GB cap.

Close Name:Billy K Posts: 297 Joined: 06 May 2004
Subject: Stupid Arguments

Quote
ivanii wrote:

Microsoft is quite precize description of what Apple does now. It is using anticompetive moves in order to monopolize market. The only difference is that Apple has that fancy image, so many actually don't mind about this.

Apple could at least licence it's music format to others so that they can build their players that are compatible with Apple. If Apple is better, he would still keep its market share. Also this would allow other stores to sell their music for iPod. There are different people and it is quite obvious that they may want to shop different music through different shop interfaces. But Apple does not do that, as it does not want any competition!


Apple has no reason or obligation to license its proprietary format they spent time and money developing. You want to sell music for an iPod - sell it in MP3 format. And you apparently didn't notice that they HAVE licensed their product to HP and Motorola. They also have no obligation to support WMA (although iTunes will now convert it). They've played fair (no pun intended), but the "competition" can't compete. Apple has no ingrained advantage over their rivals. In fact, in the case of Sony, they're at a disadvantage.

You say Apple "doesn't want any competition,' well, guess what? There are dozens of music download services and hundreds of MP3 players. That sounds like competition to me. They haven't done anything to quash their rivals - aside from make a better product.

You mention 'anticompetitive moves.' Well, name one. Go ahead.

View Name:Guest
Subject: PC user Puns are "Crap of Toilets"
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Subject: Apples and doorhinges
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Subject: windowsmoronics
Close Name:Billy K Posts: 297 Joined: 06 May 2004
Subject: Dumb

Quote
Guest wrote:
i still think that anyone who markets a portable player, a desktop player, and a download service will trap the masses. i have 8,000 legally ripped mp3's for my personal use and for DJing, yet no one has convinced me to buy their MP3 player yet. i still have the impression that people with iPods dont have anything good to spend their money on, and the everyone i see will NEVER come close to using the full capacity of those things. i know people who have the Zen, the Dell player, or the ipod, that have MAYBE 500 songs on them...so wasteful!!

stupid mindless masses...


You need to get out more, apparently. I've had my 20Gb iPod for 6 months and it's filled. I'm not even close to finished ripping my CDs. That was perhaps the best $400 I ever spent. I use my iPod more than anything I own. It wasn't a waste, and it wasn't easy to come up with the money.

So, if you use your 8,000 MP3s for DJ-ing, what do you do - bring your laptop along? You realize iPod DJ-ing is where your craft is headed, right?

Close Name:Small White Car Posts: 1937 Joined: 02 Jul 2004
Subject: I don't think you are

Quote
Engine Joe wrote:

I would suffocate and die under a 4GB cap.


Well maybe if you go on week-long vacations...

Look, 4 GB carries about 2 DAYS worth of music. I listen for 2 hours a day so I doubt I'll ever listen to all of it.

Each night I can sync to a different playlist so I have different music every day. And it's not like my playlists are segregated by type of music. I have a wide variety no matter what I up-load.

Like I said, maybe you're taking long trips or something...but for me it works just fine.

Anyway, I think you are a bit above average in terms of the amount of music you own. And that's why the make the larger iPods. I know the mini isn't for everyone and you're a perfect example.

View Name:Guest
Subject: Man oh man
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