Apple, just another Microsoft??

[windy_city]

Just read this article in Forbes, quite interesting. It is about Apple trying to turn Ipod into something like Window OS. They restrict other companies such as real network from offering downloaded music that can be played on Ipod. They create a file format called ACC that can only be played on Ipod. When you buy music from itunes, you can only play that music using Apple stuff such as Ipod.

While they always voice their hatred towards Microsoft in monopolizing the market, they are trying to do the same using their Ipod to maintain their revenue. And they are going to sue other companies for trying to break their monopoly.

Seems that in the business world, there is no right or wrong way in doing business. As long as that business makes money, it is the best way even that means that one need to suppress the other companies and monopolizing the market. Earning profit will always be the ultimate goal. It will not be long when another Microsoft-like company emerges in the market.

Yeah, go Apple!!!
**Apple: It is never fun to let Microsoft monopolizing the market alone, now with Ipod we can do the same!!

The article can be found at:
http://www.forbes.com/home/personaltech/2004/07/30/cx_ah_0730tentech.html

[Thirdshifter]

Just read this article in Forbes, quite interesting. It is about Apple trying to turn Ipod into something like Window OS. They restrict other companies such as real network from offering downloaded music that can be played on Ipod. They create a file format called ACC that can only be played on Ipod. When you buy music from itunes, you can only play that music using Apple stuff such as Ipod.


Actually ACC could be played on few other HDD based players. Its the DRM ACC files (the one sold on itunes which are protected) would not play on other players.

While they always voice their hatred towards Microsoft in monopolizing the market, they are trying to do the same using their Ipod to maintain their revenue. And they are going to sue other companies for trying to break their monopoly.

As a consumer, the annoying part of this is that Apple refused to license FairPlay to Real. I like the idea of having a choice of where to buy music (although I'd probably keep buying from Apple just because of the ease of use of the iTMS).

I bet Apple is worried about competing with other music stores to get content from the music labels. Right now, if a label wants to sell music on the web, Apple is by far the biggest player, but Apple has been fairly inflexible in their division of that $.99. I would guess that the record labels would jump at the chance to cause Real and Apple to get into a bidding war for Britney's next album...

Anywas here's the official press release from Apple

"We are stunned that RealNetworks has adopted the tactics and ethics of a hacker to break into the iPod, and we are investigating the implications of their actions under the DMCA and other laws. We strongly caution Real and their customers that when we update our iPod software from time to time it is highly likely that Real's Harmony technology will cease to work with current and future iPods."

[masterof_none]

The only dilemma that facing Apple now is that, they don't want the iPod become the IBM PC.

What happen when IBM PC was cloned by Compaq? eventually, there are more people cloning IBM, and eventually, IBM lost the market share. The best thing is, Real make exact analogy about their legal activity by comparing "IBM and Compaq".

when things get compatible, iPod would stand to loose bigger market share, just like IBM and the rest of the cloner . iTunes software would probably hang around for a while, but that's not the reason why Apple created iTunes.

The original idea for iTunes , so that they can sell iPod. and iTunes do not make a lot of money relative to the iPod.

it's always these things that haunted Apple. So, I'm not surprised when they take couple of days (not immediately) before responding to Real.

I think a legal action is worth a gamble.

[jagganatha]

Cant believe apple is up to this.. damn them.. well so long for the ipod.. i'd say go for the creative zen xtra.. same storage lesser price.. all music store compatibility

[Thirdshifter]

The original idea for iTunes , so that they can sell iPod. and iTunes do not make a lot of money relative to the iPod.

I think steve job had begun to realize that having a huge share in the Ipod who cannot buy from a different store would eventually create a monopoly.

We all know buying Music from the net is the future of Music. If Apple has a big consumer base with their Ipod,, itunes would eventually just raise their price a little to meet "demand" and since Ipod users has no other options then iTunes all the record companies who wants to sell music will look for Apple.

What real did is probably ethicly wrong but as far as im concern its legal. We'll see how judge will throw this one out of the window. Apples DCMA claim is weak.

[masterof_none]

We all know buying Music from the net is the future of Music. If Apple has a big consumer base with their Ipod,, itunes would eventually just raise their price a little to meet "demand" and since Ipod users has no other options then iTunes all the record companies who wants to sell music will look for Apple.


iPod is not a monopoly in its market yet. It's only a raising star. Their US market of all MP3 players is around 40% and the market worldwide is only 25% or probably below that.
http://www.businessweek.com/technology/content/may2004/tc20040527_8900_tc056.htm

People don't know that the future of the Music from Internet lies in the classical hit $0.99 pricing, not subscription, until the iTMS came out. Before this, the RIAA always think of the 'evil' Kazaa when talking about Music downloaded off of the internet. And online stores don't make that much money out of this. most of the revenue go to record label, artists, etc. (walmart has $0.88 and selling the same song).

even if iTMS is the monopoly, i doubt Apple is going to raise the price.
I've never heard Microsoft raising the price of Windows OS. I don't think Tech market follows the classical economic theory.

when iPod made the hits with iTunes, suddenly everyone realize it and go "wow, there's something more than this". It's the same story when the Apple 1 came out in 1976 and Mac in 1984. if Steve Jobs doesn't play the card right, the story of the iPod would be the same to the story of the Mac.