The Analysis of Ipod

Portable Music Device
First invented in 1954, billions of transistor radios

were produced and sold through the 1960s and
1970s
They were the first devices to allow people on the
move to listen to music anywhere they went
The Sony Walkman compact cassette player soon

became the ascendant model and very popular,
dominating the market through the 1980s
The Walkman, in fact, then defined the portable
music market, selling 300 million units in two
decades
By the mid-1990s, however, a new form of digital

music, made possible by MP3 files
Why was iPod a

compulsion?
The declining revenues in the 2000s.
No impact on the common man.
Identifying the industry to be disrupted.
It became a phenomenon.
Lets Hear It!

La Revolution!
I skate to where the puck is going to be, not where

it has been.
od a breakthrough digital device.

Ultra-Portable
FireWire
Memory
APPLE DESIGN
$400 price tag
The unconventional scroll wheel
The lack of Windows compatibility.
Despite all this, the iPod sold beyond

everyone's expectations
>300 million iPods sold
>10 billion songs have been sold
via iTunes

it has been.
y iPod instead MP3 player?
It's proprietary
Cheap plastic or looking fake product versus
impressive industrial designed beautiful
aluminium perfection product
Perfect compromise between size and

storage capacity
weighing about 6.5 ounces.
5 GB hard drive
Best battery life (by far) of any MP3 player
Simplicity, seamless integration with its

iTunes software
There is no real difference between an iPod

and any other MP3
SWOT
player, except iPod has
managed to take a potentially confusing
Financial
Resources,
Higher
process
and makeNo
it easy,
evenPrice
for Grandma
Competition, Market
Leader
Educational Tool
New Competition (Zune)

it has been.
The iPod
160 GB iPod Classic: $349

40,000 songs for
Weighs 5.7 ounces
200 hrs of video
Photo Album
2.5-inch Color Display
4 GB iPod Nano: $199

2,000 songs
2 GB iPod shuffle: $69

500 songs
iPod Shuffle, iPod Nano, iPod Classic,
iPod Touch
THE IPOD
PEOPLE
Strategic Map PMPs
Ipod Nano
Ipod Touch
Zune
HPP
LPP
iTunes
PRE iTunes
1999
80 Million
Users
P2P
10,000 per
second
PRE iTunes..
69% of the illegal music
downloaders are willing to
switch to legal download.
Willing to pay an average of 75
cents.
Recording Industry Association
of America (RIAA)
ginning of iTunes
Bill Kincaid and Jeff Robbin
developed SoundJam MP with
assistance from Dave Heller (all
former software engineers)
SoundJam MP was an early Mac OS
compatible MP3 player and
synchronization manager that was
released in July 1998 and was available
until June 2001
Jobs personally worked with them to
transform SoundJam into an Apple
product
Apple, Inc. purchased SoundJam MP in
2000 and further developed the code
to create iTunes version 1.0
On January 9, 2001, Apple

debuted iTunes 1.0 to the public.
iTunes Music Store iTunes

Store
The iTunes Store was first launched on April 28, 2003.

provide a virtual store where people can buy and download
digital music on-demand
Initially, the store only hosted 200,000 tracks and only Mac
users were able to buy and transfer music to the iPod. PC
users had to wait until October 2003 for the release of the
Windows version of iTunes. Today, the iTunes Store is the
largest seller of digital music in the US and has sold over
10 billion songs
During Apples early days, the iTunes Store was only

available to U.S customers. This changed in 2004 when a
series of European launches took place
Global launches continued throughout the world over the

years making the iTunes Store the most widespread digital
Achievements
70 million songs sold in its
first year
1 million music videos sold
20 days after first being
introduced.
2006: 1 billion songs
downloaded and a gain of
88% of the legal music
download market share
(U.S.) 25billion songs sold
worldwide by Feb 2013
2007: The iTunes Store became
the most popular destination
in the world to download
movies; 2 million movies had
been sold.
2008: Apple announced >4
billion songs were download and
that it had became the second
Steve Jobs introducing the iTunes

Music Store on Apr. 28, 2003
Steve Jobs talks about over 1 billion

songs sold in 2006
BUSINESS MODEL
DRM-free songs made available
(2007) through iTunes store.
Razor Blades Model
Marketing of only the devices.
iPod sales
In 2002 Apple sold about 600,000
iPods. In June 2003 it sold the
1,000,000thiPod.
September 2003 more than
10,000,000 songs had been
downloaded from iTunes. By
December 2003 iTunes downloads
exceeded 25,000,000 songs and
Apple had sold 2,000,000 iPods.
LETS CANNIBALISE!

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Portable Music Device

First invented in 1954, billions of transistor radios

The Sony Walkman compact cassette player soon

By the mid-1990s, however, a new form of digital

Why was iPod a

Lets Hear It!

I skate to where the puck is going to be, not where

od a breakthrough digital device.

$400 price tag

The unconventional scroll wheel

The lack of Windows compatibility.

Despite all this, the iPod sold beyond

I skate to where the puck is going to be, not where

y iPod instead MP3 player?

Perfect compromise between size and

Simplicity, seamless integration with its

There is no real difference between an iPod

New Competition (Zune)

I skate to where the puck is going to be, not where

160 GB iPod Classic: $349

4 GB iPod Nano: $199

2 GB iPod shuffle: $69

iPod Shuffle, iPod Nano, iPod Classic,

Strategic Map PMPs

On January 9, 2001, Apple

iTunes Music Store iTunes

The iTunes Store was first launched on April 28, 2003.

During Apples early days, the iTunes Store was only

Global launches continued throughout the world over the

Steve Jobs introducing the iTunes

Steve Jobs talks about over 1 billion

Marketing of only the devices.

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