Tuesday, April 18, 2006

visiongain intelligence: Apple’s deeper mobile play is inevitable

According to a new report from visiongain intelligence, the firm "believes that the years 2006 and 2007 will see Apple’s product offerings accelerate as it focuses on convergence technologies."

The firm notes that "Apple shipped over 14 million iPods during fiscal Q1 2006 ended December 2005, representing 207% growth over the year-ago quarter," and estimates "total shipments of over 40 million iPods. Thanks to close synergies and integration with the iPod, meanwhile, over one billion tracks have been downloaded from the iTunes Music Store since it launched on Windows in October 2003."

visiongain believes "Apple will embrace mobile more fully and pose a greater threat to the mobile phone industry itself – as an MVNO challenging carriers and a cellphone brand challenging handset makers. Upcoming US MVNO Helio presents a good entry strategy for Apple’s iPhone, an own-brand Apple mobile phone that is likely to be launched by the company. Indeed, the release of which is both logical and inevitable."

visiongain analyst Pam Duffey said, "The iPod capitalised on and redefined the emerging digital content market that has thus far proven elusive to other industries and iPod competitors. iPod's story, however counter-intuitive it may appear, does prove innovation is key to seizing the lion's share of the market. The incredibly simplistic user interface encourages greater usage, and has been Apple's greatest gift to the computing masses."

Duffey concluded, "Beyond solid pricing strategy, Apple is expanding its distribution methods and network to grab and maintain leading market share."

Not a lot of meat on these bones...