I love my iPod. After investing quite a few hours in converting my complete CD collection into AAC-files and uploading them to my 40GB iPod, my CD player has become close to obsolete. When at home, I use my iPod as a jukebox, playing songs from my music library at random. In my car I tend to listen to audiobooks that I bought at www.audible.com and which make my daily commute almost bearable. But it is not just that the iPod does these tasks better than any other MP3 player that causes my admiration for this beautifully designed device.
I find it fascinating to see how a proprietary product like the iPod has created its own ecosystem all the same. Numerous companies like Griffin and Bose sell accessories for the iPod, ranging from a snap-on that turns your iPod into a voice recorder to a back-up battery pack and fixed speakers, all in elegant white.
Having consulted Bertelsmann in 1998 on the impact of digital distribution of music on the industry's value chain, I can imagine the kind of opposition and aloofness Apple must have faced when trying to convince the industry to participate in iTunes and make their (back) catalogues available. But whether iTunes will continue to enjoy its current first mover advantage is to be seen. While iPod and iTunes still form the most potent player/music store combination in the market, Microsoft may still turn things around. Its Windows Media Player has become something of a defacto standard, whether you like it or not (I don't like that, but more about that some other time). Furthermore, where iTunes music can only be played on an iPod (Motorola's iTunes mobile phone coming soon....), music bought through Microsoft can be played on a great many MP3 players. Only time will tell how this will play out.
Another interesting aspect of the iPod is its relation to the trend towards R&D outsourcing. In an interesting article on this subject in the March 21 issue of BusinessWeek it was mentioned that on the back of each iPod one can find some engraved text that draws our attention to the fact that the iPod was designed by Apple in California but assembled in China. Other companies go even one step further: not only do they outsource the assembly of their products to Asian firms like Flextronics, Cellon, Compal, HTC. etcetera, but they also have the latter design their new products. Only fundamental R&D and design is likely to remain in
