The analysis of the sale of iPods
- SWOT Analysis
- Strategy Analysis
The rate at which iPods are being sold seems to be approaching 40 units per minute. This acceleration was reminiscent in the recent quarters that Apple is moving towards a pace to sell 1 iPod per second at the end of 2005.
The success story of iPod seems difficult to stop with regard to the share market model of "Shuffle" which is supposed to ensure the presence of Apple in the portable segment of flash memory. This has been increased from 0% to 80% in 6 months.
After the presentation of the product, several questions will be asked such as: What is the range of the iPod? What is its target? Who are its competitors? How is its packaging done? What is its role in the overall range of all products?
The management to know the strengths and weaknesses of the iPod, its position, and competition with the help of a mapping and future product planned by the company will be studied.
According to research analysts of the company iSuppli, the trend is still upward, and it is not ready to stop. According to them, the number of music players shipped will be multiplied by 4 between 2004 and 2009, representing an increase of concrete 36.8 million units shipped in 2004 to 132 million in 2009.
The music players are now no longer just for the elite and upper classes, but they have become real objects of mass consumption, and is increasing for the general public.
Indeed, the market is full at a take-off phase, expressed here by reaching the mass market. Thus, an increase of 400% was expected and that, over the period 2004/2009. Recognizing this economic challenge, the major manufacturers (Apple, Creative, iRiver, Cowon, Rio) are waging a ruthless war to take over more market share.
According to the latest research firm NPD on August 2004, the iPod would capture 82% market share of digital music players to hard drive. Against 64% in August 2003 and 33% two years from there. Extended to the entire industry, small portable flash memory included, this market share would be 80%. Performance that sharpen appetites of growing competition from Apple.
The market alone for music players is to hard drive, as there is a certain supremacy of the iPod over other brands(80% market share in this segment). So it will, with respect to the digital player market, talk about monopoly.
Other trademarks feel, somehow, powerless against the supremacy and difficulty of trying to usurp market share.
In terms of the overall market, that is to say, that of music players, the market is somewhat balanced despite a marked presence of Apple (42%).
On the whole market it will be said that it is a monopoly market, since it is dominated by Apple.
Indeed, the challengers hold only 10% (Rio) and 9.3% (I-River) and finally 9% ( Thomson) while Apple with its iPod holds close to half the market.
The company is dealing with a fairly closed market for a reason quite simple, in the market, branding is important. A consumer "X" will not dare to buy a brand "Z" for the simple reason is that the product is very expensive, especially if it is a digital music player with hard drive.
Thus, the market quickly becomes dangerous for a newcomer, if it does not have a minimum experience and, unless it has a certain reputation in this market.
Tags: Apple, Apple iPod, marketing and branding