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>If you’re going to be an iPod killer — and not just a great new music player — you have to first out-Apple Apple at all the things that makes the iPod special.
by helveticaman 18y ago
>If you’re going to be an iPod killer — and not just a great new music player — you have to first out-Apple Apple at all the things that makes the iPod special. That means superior industrial design, an iTMS-beating catalogue of content, and a better desktop experience than iTunes.
My understanding is Apple makes $100 dollars' margin on every Ipod. You could gain some market share in the mp3-player space by undercutting Apple.
Just make the design work (this might mean hiring a renowned UI designer from outside, or hell, poach Jon Ive for 30M), make it cost half as much as an iPod, but avoid making it out of plastic. Make a case out of exotic metals or hardwoods or marble, or acquire 1000 songs for Microsoft's catalogue to add to every ipod so it is useful from the get-go.[1]
[1] I have no idea how feasible this stuff would be, but I think it is appealing.
- unalone 18y agoBut if you try to undercut Apple, and they're making a ridiculous margin, then if you've actually got a good player worth buying they can just drop prices. Look at the iPhone situation. They killed nearly all their competition with the price drop. Nobody can touch it right now.
- helveticaman 18y agoI'd like to split a hair: if you make them drop their prices, you'll hurt their margins and possibly their revenue, depending on the elasticity of the product. I'm not sure you'd win out in the end, but strictly speaking, you would be undercutting Apple.