Apple to take iPod into mobile market?

Stan Beer
Sunday, 23 April 2006 09:30

Your IT - Mobility

The Apple iPod coupled with iTunes has proven to be a wonderful boon for a company whose fortunes in the computers business were on the wane. However, in this era of connectivity it's about as useful as a notebook PC or PDA without a wireless card. Which is to say, it's still quite useful but it lacks something important that people want - the ability to download music anywhere, anytime.

MY 3G phone already offers this service but at present it doesn't have the storage capacity of an iPod and it doesn't have access to the iTunes excellent music library and system. However, with companies like Sony Ericsson getting into the act, all that is about to change. Let's face it, sooner rather than later, mobile phones will be capable of doing anything an iPod can plus a whole lot more. So why would you want to carry around two devices?

There is not one doubt in the world that Apple recognizes all of the above which is why the rumours that it is going to release its own mobile phone are almost certainly correct. The question is how does Apple intend to accomplish this? They have a number of choices. The could simply OEM their platform to the mobile manufacturers' market, they could partner with a large mobile player and develop a co-branded hybrid iPod phone, or they could develop their own iPod moble phone.

Apple has always been the type of company that wants to own 100% of the pie, so my guess is that it already has its own iPod phone in the production pipeline. Being a very technologically sophisticated company, a mobile phone that integrates the features of an iPod would be well within the capabilities of Apple and it already has the global distribution channel in place.

Pundits have pointed out that the mobile phones market is much more competitive than the MP3 player market. This is true but does anyone doubt the brand loyalty of Apple users? Does anyone doubt that all current and intending iPod owners will be customers? Does anyone doubt that kids in their teens would line up in their droves to get a cool Apple iPod phone rather than a boring old Nokia or Motorola? If anyone does, I'm quite sure Apple doesn't. As for price, well that's another question.