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Apple WiPod: The Business Case
Generator Research Limited, Jan 2006, Pages: 18
Assessing the Opportunity for a New Category of Music Device
- Rationale for Product
- Strategic Considerations
- Product Description
- Competitive Analysis
- Marketing
- Revenue Opportunity
Enabled by technological developments and driven irrevocably by market forces, a new type of mobile phone has already emerged: the music phone. Music phones now offer features that were previously only provided by dedicated digital music players.
But what about the mirror image of this established trend? Instead of adding music player features to a mobile phone, why not add a wireless modem to a digital music player? That way, users would be able to enjoy a branded, top-quality wireless music service that was designed to inter-work with a dedicated personal music device.
Presented in the form of a mini business plan, this report views this opportunity from the perspective of Apple where a new product such as an 'iPhone' can be envisaged. The report begins by explaining the rationale for such a product and compares the pros and cons of using Wi-Fi or 3G to effect the wireless connection.
A number of strategic considerations are then reviewed such as the how amenable the concept is to a global launch, taking into consideration the complexity and practicality of negotiating deals with mobile operators and the viability of adding additional features such as voice, perhaps by considering an MVNO model.
The product itself is outlined by illustrating a possible user implementation, describing the key specifications and reviewing the high-level technical implementation. In addition, the device's fit within Apple's existing product portfolio and future roadmap is discussed.
An analysis of the competitive landscape is offered which will allow professionals to better appreciate the considerations involved in the successful launch of rival products. The role and competitive positioning of mobile operators is also covered. The report also reviews the key marketing aspects by looking at how the device would be promoted and retailed.
Finally, the revenue opportunity is assessed by looking at the proportion of Apple's current digital revenues that could be derived from such a device.
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