iPod vs Cell phone: A Mobile Music Revolution

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Fidel Fayad Case 2 | iPod vs Cell phone: A Mobile Music Revolution INFT-645 Professor: Dr. James Pick November 18, 2008 According to a survey conducted by Amplitude Research Inc., thirty four percent of the United States cell phone users expressed their desires of having music on their cell phones. “While music and video trailed text messaging (73%) and cameras (67%) by a wide margin, the survey implies that multimedia capabilities are increasingly seen as necessary by consumers.” (Bonanos, 2008). Cell phones nowadays are packed with capabilities that exceed their primary intent, which is to make and receive calls. The mobile music market has been growing consistently and the primary beneficiary of such market is the iPod music player coupled with the iTunes store. The iPod music player captures 72% of the mobile music players market, a figure that is astronomical when compared to other players. (Van Buskirk, 2008). Why is this duo so successful? Much of the credit is attributed to the successful design of the iPod which incorporated three major factors that consumers strived for: storage, battery life, and ease of use. “Stories persist to this day of Steve Jobs returning prototype after prototype of the iPod to the lab bench because he could not get to his desired song within three clicks.” (Bush & Hwang, 2008). Some of the credit is also attributed to the efforts that went behind marketing both iTunes and iPods. “While everyone else was making an MP3 player that was better/cheaper/faster, Apple was making electronic jewelry that also played MP3’s. Never focusing on price, they brought to market more value, more style, and new ways of interacting with digital media.” says David Taber a marketing consultant. (Weisbein, 2008). The fact of the matter is that iTunes holds the largest legal music library consisting of more than 3

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