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Is Apples iPod Dominance Sustainable? The Consumer Responds
The Diffusion Group, Oct 2006, Pages: 38
As Microsoft and others prepare to enter the portable digital music player (DMP) space, and as Apple turns its attention to other market spaces such as the digital home, a window of opportunity opens for competitors to mount on assault on iPods dominance. However, iPod users are an extremely loyal lot and gaining market share will depend heavily upon convincing new DMP users to switch brands.
In 2005, the author launched its inaugural iPod research, attempting to better understand the popularity of Apples music player as well as the reasons that Apples dominant market share not only continued but actually grew. Since the initial report 'Understanding the Dominance of Apples iPod' was published, Apple has released the iPod Nano and iPod Video, and consequently changed consumers expectations in portable media. Containing specific and useful insights regarding how successful Apple has been at maintaining its 'coolness' despite becoming more common, it is the purpose of this report to update the iPod research with post-Nano/post-Video insights and to analyze the changes that have occurred over the past year.
Three Key Findings:
- Apple is by far the most used brand of DMP as 63% of DMP households have an iPod - this means that an iPod can be found in 33% of broadband households; Creative and Sony are second to Apple, each existing in 9% of DMP households.
- The decline in proclivities to switch to Apple among non-iPod DMP owners is certainly good news for Apple competitors as it shows that brand loyalty may exist outside of Apple.
- The easy- and enjoyable-to-use interface was the most common reason for choosing an iPod over a different brand. The interface has remained the top reason for choosing the iPod, with 26% citing this reason in both 2005 and 2006.
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