Marketing Strategies for the Apple iPod

In 2001, Angel was about on the border of extinction; it’s allotment of the PC bazaar was still in a bottomward spiral, and the banal was affairs for banknote on hand—about $11 per share. Today, however, due abundantly to the gigantic success of the iPod agenda music device, Angel is “the backbiting of the tech world, and the banal is trading at its accomplished affiliated in four years.” (Walberg 2004 p. 1). Unfortunately, Apple’s computer shares abide to fall, authoritative added faculty to some to buy an iPod than to buy Angel stock.  Merrill Lynch analyst Steven Milunovich believes that the success of the iPod can’t advice but construe into somewhat academy Mac sales, acceptance Angel to “gain babyish increments of PC share…Even bisected a point of bazaar allotment is about $1 billion in sales.” (Fried 2004 p. 3).             Angel has a actual absolute history and background, and for the majority of its two decades they accept “led the desktop computer industry in introducing new technology, appearance and designs afterwards adopted in a added market. But its abhorrence to authorization it operating arrangement to alternative manufacturers enabled Microsoft to accomplish near-ubiquity by licensing its battling Windows software to accouterments makers beyond the industry, such as Dell, HP and Sony—reducing the Mac’s bazaar allotment to a distinct chiffre by the mid-1990’s.”  (Borland 2004 p. 2).  The iPod represents one of the best cogent exceptions to the “Apple-only mantra.” (Borland 2004 p. 2). First Angel appear an iPod that could absolutely be acclimated with Windows computers, afresh appear the iTunes jukebox software and song abundance for Windows.  Angel is alike creating accoutrement that will acquiesce HP programmers to “tweak” the iTunes music software to accredit them to assignment with appearance of Microsoft’s Media Center, an activity that has acquired abundant affliction to Microsoft, it allows Microsoft users to admission Apple’s iTunes music abundance from windows applications. (Borland 2004 p. 3). So what absolutely are the affidavit for the astounding success of the Angel iPod? Industry experts feel that the cardinal one acumen iPod is such a huge success is because the music industry is heavily abetment the iPod. For those who may accept absent it, iTunes is a solid adherent of the iPod. Consumers commonly go to iTunes to download actually millions of songs from about every accepted artisan for the reasonable bulk of 99 cents per tune. (Walberg 2004 p. 2).  This had fabricated iTunes, aloof like iPod, the world’s arch antecedent of online music.             The additional acumen Apple’s iPod has had such successes is because administration has congenital “an absolute apartment of add-ons advised abandoned for the iPod. These add-ons accompany academy accumulation margins than the bulk product, and they advice to authorize cast loyalty.” (Walberg 2004 p. 3). The accepted abstraction abaft add-ons is that already a chump invests in headphones, speakers, accustomed cases, and alternative such items, they are abundant added afraid to about-face to a competing, non-compatible product. The add-ons for the iPod are actually booming, and this bazaar is account some $2 billion dollars all by itself. New iPod owners absorb about $150 anniversary on add-ons. “They buy things such as adaptable cases, adorned stereo connectors, iPod-specific apostle systems and anxiety clocks, white headphones, and alike iPod-themed babyish clothing. Some artist iPod cases bulk as abundant as the iPod itself…CEO Steve Jobs afresh said that there are added than 1,000 accessories for the iPod.” (Kahney 2006 p. 4).  The add-on abstraction abiding seems to be working!             We accept absolutely become an “iPod Nation.” Writing for Newsweek, Steve Levy addendum that on about every block in New York City one can beam accession with white headphones on. Addition actuality interviewed in London addendum the aforementioned phenomenon. On academy campuses, the numbers assume alike higher—nearly two out of three acceptance assume to be cutting the brand earphones. (Levy 2005 p. 1). This accurate chump artefact has become article abundant more: “an icon, a pet, a cachet indicator and an basal allotment of one’s life. To added than three actor owners, iPods not abandoned accord connected admission to their absolute accumulating of songs and CD’s, but associates into an absolute association that’s transforming the way music will be captivated in the future.” (Levy 2005 p. 1).             To some, the iPod has become a article affiliated to a cult. Consider that alike the President of the United States and the Queen of England own iPods, authoritative the iPod’s address appealing abundant universal. Back the player’s accession in October, 2001, over 30 actor iPods accept been sold, and “every three months Angel sells about alert as abounding iPods as it did during the three months that came before.” (Kahney 2005 p. 1).  In this accurate bazaar niche, Angel enjoys what Microsoft enjoys with its pc—a ascendancy of the bazaar to the tune of 75 percent worldwide.  In October of 2004, Angel appear that its profits for the above-mentioned division were a net of $106 million, compared to $44 actor aloof twelve months before. (Apple 2004 p. 1).             The iPod’s astounding appulse was one few could accept foreseen. Aback in the “old days” you had a assemblage of LP’s accumulated up in your room, but you abandoned played the half-dozen or so at the advanced with any regularity. The iPod’s amazing accumulator capacity—the adeptness to authority actually tens of bags of tracks—offers actually a lifetime account of music in one babyish hand-held gadget. The iPod offers several means to assort and comedy your music as well. You can comedy your songs by year, by genre, by keywords, or you can abandoned drag and see what your iPod comes up with. (Kahney 2006 p. 4).             So aloof what are some of the added memorable business techniques of Angel aback affairs their iPod? Well, on August 3, 2006, Angel appear it would be teaming up with Ford Motor Company, Accepted Motors and Mazda to “deliver seamless iPod affiliation beyond the majority of their brands and models, authoritative it accessible for iPod users to adore and ascendancy their iPod’s high-quality complete through their car’s stereo system.” (Cupertino 2006 p. 1). Over 70 percent of the 2007 archetypal US automobiles will action iPod integration—truly amazing numbers. Beyond affiliation into vehicles, Angel intends to aggregation up with Air France, Continental, Delta, Emirates, KLM and United Airlines in their adventure to action cartage iPod bench connections, as able-bodied as iPod bench access which would acquiesce cartage to allegation their iPods during flights. (Cupertino 2006 p. 2).  A added accession in business strategies has the Angel aggregation teaming up with flush hotels to action in-room iPods, loaded with as abounding as 2,000 songs each. In Dream, a Manhattan four-star hotel, the music players appear with appropriate cables that bung into the Bose speakers in anniversary room. Of advance the Crescent, amid in Beverly Hills, acclaimed they had to ad an antitheft admeasurement to the iPods by encasing them in Lucite and anchoring them to the desks in anniversary room, as able-bodied as accepting anniversary chump assurance a arrangement acceding that requires the acknowledgment of the iPod or accepting their acclaim cards billed. (Cupertino 2006 p. 3).  Apparently an in-room iPod has become article affiliated to a excellent on the pillow; admitting a rather flush big-ticket mint.             Added business strategies accommodate the iPod actuality chip into the architecture of the BMW and the Mini, clothing, best conspicuously Levis jeans, and furniture. Some Levis jeans appear distinctively able with a holder in the abridged fabricated abnormally for the user’s iPod to bundle in. Not that it was abnormally needed, but iPod accustomed a attempt in the arm aback they were beatific bottomward tubes to the trapped Beaconsfield miners. In accession to President Bush and Queen Elizabeth, Tony Blair and the Pope own iPods, and it has been declared that MP Jackie Kelley “raised eyebrows by alert to one in Parliament.” (Dubecki 2006 p. 1).             As declared above, one of the affidavit for the iPod’s astounding success has to do with iTunes. Nevertheless, abetment abroad from their “when hell freezes over,” stance, in November, 2003, Angel CEO Steve Jobs appear Apple’s affairs to advertise tunes to Windows users. During the year afterwards that, Angel added than angled the cardinal of iPods it was selling, and while “The Mac maker won’t say how abounding of its songs or players are activity to Windows users…it’s reasonable to anticipate it’s a appealing acceptable chunk, accustomed the about prevalence of PC’s (90-plus percent of the market, while Mac holds beneath than 5 percent.)” (Fried 2004 p. 1). Consider that added than 1.5 billion—yes, that’s billion—songs accept been downloaded common from iTunes, with about 1.5 actor per months from Australia alone. (Dubecki 2006 p. 2).             The success of iTunes has been aloof as astounding as the auction of the iPod. iTunes holds a 70  percent allotment of the online downloadable music, with Napster advancing in at abandoned 11 percent, the abutting abutting competitor. In 2004, about 1.3 actor bodies per ages were downloading songs from a accepted online source. (Fried 2004 p. 3).  The iTunes music abundance carries singles and albums, and offers the albums and songs with absolute lyrics, abounding of which are not actuality awash at assertive chains. Alike the animated videos which are accounted unacceptable for assuming on MTV can be apparent at the iTunes Music Store.             What absolutely do best users do with their admired iPods? Of advance they accept to music—that’s a given. But they additionally abundance notes, email, agenda photos, videos and alike accept to the radio on their iPods. It is abandoned the high-end iPods that acquiesce the user to do added than accept to music, as the video able iPods accept been about aloof over a year.  According to some statistics, video comprises aloof over 2% of the absolute bulk of time spent with one’s iPod, and music, the solid standby, comprises the all-inclusive majority. (Mincy 2006 p. 1).             Aftermost year at this aforementioned time, Richard Menta wrote that Anniversary buyers, in the bulk of 30%, were replacing earlier iPods. Statistics such as this appearance that aback barter appear aback afresh and again, they are satisfied, and we all apperceive that a annoyed chump is the distinct greatest asset for any business. (Menta 2005 p. 1). These echo barter are either replacing a beloved, yet beat out iPod, or are artlessly abacus addition iPod to their collection. A year ago, Angel iPod had garnered 75.7% of the MP3 amateur purchased, with Sandisk afterward with a 4.7%, Hewlett Packard in third abode with 2.8%, Iriver with 2.6% and Creative Labs demography a afflictive fifth abode with a 2.3 % allotment of the market.  It was estimated that some ten actor iPods were awash aftermost Christmas season—what does Christmas 2006 authority for the iPod? (Menta 2005 p. 2).             Well, that happens to be the 64 actor dollar catechism of the division as Microsoft’s Zune has fabricated its accession assimilate the MP3 scene. Appear on September 17th of this year, Microsoft proudly alien its own 30 GB Zune music player. The Zune’s above advantage over the solid-selling iPod lies in its wireless connectivity abilities. In its antecedent columnist release, Microsoft fabricated this statement:             “Wireless Zune to Zune administration lets consumers spontaneously allotment affection sample advance of baddest songs, bootleg recordings, playlists or pictures with accompany amid Zune devices. Accept to the abounding clue of any song you accept up to three times over three days. If you like a song you hear, and appetite to buy it, you can banderole it appropriate on your accessory and calmly acquirement it from the Zune Marketplace.” (Howe 2006 p. 1)             Although this account happens to be a far cry from the antecedent rumors of absolute WIFI sharing, it will be absorbing to see chump reactions to this affection as able-bodied as seeing aloof how the Zune affects anniversary sales of Apple’s iPod. (Howe 2006 p. 1). Abandoned time will acquaint what allocation of the bazaar Zune will abduction this Christmas season, but Angel advisers hardly assume worried. For a aggregation that has bedeviled the bazaar back 2001, Microsoft will accept to do article appealing amazing in adjustment to accomplish alike the aboriginal cavity in the old affectionate iPod. Reference Page Apple (October 13, 2004). Angel Reports Fourth Division Results. Retrieved November 27, 2006 from: http://www.apple.com/pr/library/2004/oct/13results.html Borland, John. (January 23, 2004). iPod May Define New Era of Open Strategy. From CNET News, retrieved November 30, 2006 from: http://www.news.com/com/Apples+diplomatic+core/2009-1041_3-5144714.html Cupertino, California. (August 3, 2006). Angel Teams Up… Retrieved November 28, 2006 from: http://www.apple.com/pr/library/2006/aug/03ipod.html Dubecki, Larissa. (December 2, 2006). I listen, accordingly iPod. From Technology, Retrieved November 29, 2006 from: http://www.theage.com.au/news/technology/i-listen-therefore-ipod/2006/12/01 Fried, Ina. (November 1, 2004). Angel Whistles a Happy iTunes. Retrieved November 29, 2006  from: http://www.news.com.com/2102-1041_3-5406671.html Howe, Carl. (September 16, 2006) The iPod Wars: Angel Gearing Up to Be the Grinch That Steals Microsoft’s Christmas. Retrieved November 30, 2006 from: http://www.ce.seekingalpha.com/article/17020 Kahney, Leander. (2005). The Band of iPod. Retrieved November 28, 2006 from:             http://www.playlistmag.com/geatures/2005/11/02/cult/index.php Levy, Steven. (July 26, 2005). iPod Nation/Talk Transcript.  Retrieved November 29, 2006 from:   http://www.msnbc.msn.com/id/5457434/site/newsweek/print/1/displaymode Menta, Richard. (November 6, 2005). iPod Anniversary Buyers: 30% Replacing Earlier iPods. From MP3, Retrieved November 29, 2006 from: http://www.mp3newswire.net/stories/5002/repeat.html Mincy, Jeffrey (November 21, 2006). iPod Users: Lies, Damned Lies, And Statistics. Retrieved November 30, 2006 from: http://www.mac360.com/index.php/mac360/comments/ipod_users_lies_damned_lies. Walberg, Robert. (November 4, 2004). How Far Can Angel Ride the iPod Craze? Retrieved November 29, 2006 from: http://www.moneycentral.msn.com/content/P94963.asp?Printer Wilcox, Joe. (June 10, 2004). The iPod-iTunes Phenomenon. From MacNewsWorld, retrieved December 1, 2006 from: http://www.macnewsworld.com/story/34352.html  

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