April 11, 2005
Apple's IPod Faces Challenge From Cellphones
WSJ looks into the changing mobile music business and the challenges it will raise for Apple.
"With its white-hot iPod device, Apple Computer Inc. sits atop the digital music world -- seemingly without a serious competitive threat in sight.
That lead may not last much longer. Apple will soon confront not just a new challenger but an entire $100 billion industry. Cellphone makers and wireless carriers are piling into mobile music, with an array of new services and phones that could radically change a game that until now has been defined largely by Apple.
Last month, SonyEricsson, unveiled a Walkman phone, seeking to leverage the Sony Walkman brand in the music phone sector and Motorola last month announced three new music phones, all capable of downloading songs from a user's personal computer, like the iPod does.
While their offerings may not be quite as trendy of those from Apple, at least not at first, they have one big advantage: People carry cellphones more than any other device. A recent survey by JupiterResearch showed that 76% of those asked said they carry a cellphone regularly, while just 7% said the same about a music player".
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