Quote:
Originally Posted by Mattyk72
The ipod was basically the first mp3 player with a slick user interface to hit the market, and the tie in with itunes really helped them sew up the market. I think the ipod has something like 70%+ control of the mp3 player market, that's just insane.
|
Exactly. They were first to market with a decent product and had most major labels tied up in contracts so people could easily and legally get music. They were exteremly unique in this regard and it is the main reason they have commanded such a large market cap. As for the iPhone I imagine they will be able to use iTunes as leverage similarly but with much less effect. I am dubious that they can penetrate the already ultra-competitive phone market with any great amount of success. They simply have no differentiation, expect for price, and in that regard it is a bad differentiation.