Umair Haque / Bubblegeneration
umair haque  


Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.

Monday, August 02, 2004

Hi Guys,

If you're coming here to comment about Apple vs Real, look at this first. If you know this stuff, that's cool; if you don' should.

I can't believe someone actually picked on my grammar. Is that a sure sign I won or what!!? (ducks)

One more interesting point from an email I got:

"...Please consider Apple's ability to continue making iPods profitably if they open up. Consider the example of Palm that nearly went bankrupt trying to both control the platform and make the widget. You may saythat either it is not possible or that it doesn't matter, the platformis the prize --> sacrifice the iPod for AAC/Fairplay platform ?"

OK. First, the point is not to consider not only what they gain or lose by doing it, but what they gain or lose by not doing it. I've argued they lose more by not opening than they lose by opening. Second, opening the platform does not sacrifice iPod sales. Sure, it's possible that Real might try and out a competitor, but, as I've argued before, the iPod has no real competitors, because Apple's competitors don't understand the value drivers in this market. And they won't for quite a while. So the iPod absolutely owns the market. Creating a standard around iTunes/iPod would, if anything, drive sales - by creating a thriving market for complements (more of them, available more cheaply, than Apple's currently limited selection).

-- umair // 1:02 AM // 0 comments


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