Happy Birthday iTMS


Next: Apple goes Hollywood

It looks like it was yesterday. On April 28, 2003, Apple opened the iTunes Music Store. Nobody, besides Steve Jobs, would have thought that this business will change the music industry and would have put Apple into a leading position that it is today. Backed up by more than 350 million sold songs and still going strong, Apple's stock is climbing higher and higher. I remember Apple's iPod sales as well. They did good in the US and the UK. However, in Germany sales seemed to be slow. Even in Germany things changed. Apple found new POS and ways to sell its hottest piece of technology.

Now, after two years of iTMS, 5 million iPods per quarter, and Apple being on the top of the hill, I think it is time to look ahead and talk about the next two to four years. Apple has the potential to reshape the movie and entertainment world. Apple is watching Yahoo's latest steps into the Hollywood world carefully. I would expect the Mac company to move ahead with new services and devices connecting different user and entertainment experiences like movies, music, and computer.

We might see new devices, capable of handling movies, games and music, as soon as 2006. Inspired by Sony's PSP success in the US, Apple might even move faster. However, I would not expect Pippin II or Newton II. Steve Jobs will not pick up old ideas, he is into changing things and into leading the way. Expect devices which utilize existing technology like HD TVs. Just imagine Apple devices which would interact with digital TV sets in cars, loaded with Quicktime 7, and capable of reshaping the mobile entertainment world.

Apple also likes to change the way we look at things. Small is beautiful. The cube, the Mac mini, the iPod shuffle, and lots of other Apple products showed Apple's talent in re-factoring existing dinosaur appliances. I would expect all future Apple devices to be mini-sized.

In order to create another digital entertainment wave like iTMS, Apple has to partner with other companies. Since content is still king, Apple needs digital content for its new devices. With more than $7 billion in cash, watching Sony picking up MGM, and working closely with Pixar, Apple might want to get into Hollywood much faster. With great new devices, a powerful content strategy, and mighty partners, Apple could provide another monumental wave for consumers.


Posted: Sat - April 23, 2005 at 08:56 PM           |

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