Friday, June 01, 2007

IPhone: The best IPOD we have ever made

Walt Mosberg interviews Steve Jobs about the Apple business - well worth watching.

"we are in three businesses and a hobby" Apple MAC and iTunes Music business generate $10billion each and the third business they are about to get into is the phone business (he calls it "handsets") and the hobby is Apple TV.

Where is the MAC business? Growth is about 3x the market growth rate and greater if US is stripped out.

Jobs: IPhone is the best IPod we have ever made. Available on the last day in June.

Reason 2 cingular did the deal: Existing Phones are not capabile of taking advantage of 3G phones particularly in how users access the interent. They get the 'baby internet'

Zillions of independents are looking to offer DRM free music: many more by end of year.

Mosberg asks about 'lock-in': Jobs notes that less than 25 songs on average IPOD were purchased via Itunes store. Given average user has hundreds of songs on their IPOD. Clearly not getting the majority of their music from Itunes and not even getting a medium sized minority. Suggestion "we have a lock in is ridiculous." "IPOD wins because it is the best music player".

Mosberg: is the IPhone a wireless Ipod? Jobs: It is three things, the best Ipod ever made, the best (and incredibly good) phone and "the internet in your pocket" If it were any one of the three it would be sucessful.

Itunes software versus number of IPODs: 300mm + copies of Itunes versus 100mm Ipods. Makes Apple one of the largest windows developers. Jobs: "we get cards and letters from people that say we are their favorite app on windows," and "Its like giving a glass of ice water to somebody in hell."

Link via Paid Content.

1 comment:

Anonymous said...

Its not the best iPod ever because you only get either a 4 gig or an 8 gig of space so I can't put every song in my library and videos on the iPhone. I consider that not the best iPod ever. Get 60 gigs on the iPhone then its the best iPod ever.