Cutting The Wires

Competition Improves the Breed

From CNET:

Apple is reported to have a wireless version of the iPod waiting in the wings, and it is also said to be close to introducing a version with a touch screen. Those bits of consumer polish might outshine Microsoft just as it was entering the business with its own hardware.

Apple was happy to have its steady, and slow pace of innovation. After all, they've been dominating the music business like no other product in memory (with the possible exception of Sony's Walkman), with little real competition.

I've pegged Apple for upgrading the iPod as follows:
-By the '06 holiday shopping season they were enlarging the screen and making a virtual scroll wheel.
-For '07 I was guessing the Bluetooth, or some other propietary short range wireless would be added. I could picture the wireless white headphones everywhere!
-For '08, WiFi would debut (finally!).

Why the slow pace of innovation? It's working for them. If they added all these things at once, what else is there to add besides capacity, and battery life? There would be no compelling reason to upgrade. Apple has successfully got at least some folks upgrading their iPods every one to two years. It has turned into the cash cow that they always wanted to have with their computers, but never quite had.

So why may Apple be looking to add WiFi now? Well, it looks like Microsoft is taking things into their own hands, and making their own music/media player to compete with the iPod. It's simply too large of a market segment for them to allow Apple to dominate. Microsoft is also serious about adding wireless capabilities to it.

WiFi has been added to cameras for a while now. Unless you're a pro photographer for a news organization, it's just not that compelling. Grandma can wait to see the pics of Mickey till you get home.

WiFi in an iPod device opens up all kinds of possibilites. Given that many cities are adding WiFi networks, downloading content while waiting for the subway, or in the park become real possibilities. Also, travelers could grab a new movie and a few songs before their flight from the airport or hotel WiFi. This could take the computer out of the loop, and have downloads constantly going on.

So, it looks like the mere threat of the 800 pound of gorilla, Microsoft, is pushing Apple to cut the wires sooner than previously expected. Some folks laughed when Microsoft went into the console gaming world. Sony and Nintendo aren't laughing anymore at the Xbox. Let's see if history will repeat itself again. It often does.

--Jonas