Has the digital music market irreversibly tipped in Apple’s favor?
Nowadays, it seems that more than ever consumers are looking for multi-functionality in a single device. Phones now include cameras, video cameras, recorders, web browsing, of course, media player functionality, among other capabilities. As of today, Apple has made the right strategic moves, especially, when it introduced Apple iPhone. The iPhone seems to have captured the best of the mobile capabilities and the iPod. These types of moves have helped Apple to stay ahead of the competition and keep its position as a leader of the digital music market. However, there are still ahead many battles to win for Apple. Mobile Network operators, record labels, handset maker are forming strategic alliances to try to defeat Apple’s dominance. In addition, other strong players from other industries are also trying to leverage their position in complementary industries to capture some value in the digital market. Moreover, the industry is still evolving, and there are many important technological and legal changes to come such as the rules that govern the DRM technology, which might change the rules and positions of this industry. Consequently, the digital music market has not irreversibly tipped in Apple’s favor yet, and if Apple wants to remain competitive on this growing market, it would need to keep being innovative, creative, flexible, and pro-active.