Apple, Antitrust? The World is Turning Upside Down.
My initial reaction to this lawsuit was revulsion and disgust, but it does raise some interesting questions:
Is iTunes/iPod a market unto itself? Is the Macintosh?
Are people buying iPods because of the iTunes lock-in, or the quality of the product, or even because of the image/advertising?
It depends on how you look at it and it's even more interesting when you parse the words of Steve Jobs. Steve has always compared Apple to Porsche, both having small marketshare, and both selling premium products. One of the main differences is that Apple offers products at both high-end and low-end price points while Porsche doesn't offer as much if anything at the low-end. The Mac-mini and the iPod Shuffle 512MB underscore this point. Both command a price premium over similar products, but both are clearly targeted at price-sensitive users.
You could argue that Apple wields the same Monopoly control over the Macintosh that they do over iPod, with similar control over both the hardware and the software, but you won't find anyone suing Apple for anti-trust regarding the Macintosh. The spectre of Microsoft makes that impossible, even if Apple does have monopoly power within the unique Mac market. The Mac's market share compared to Microsoft or even other computer makers is miniscule but with iTunes and the iPod, ah, with iPod, it's a whole different story. Apple is clearly the market share leader.
So is there competition for the iPod? Sure, if you count products that cannot play files purchased on iTunes, and why wouldn't you. Lock-in is nothing new, look at cell phones. Why should iTunes be any different than cell phone networks? And there is even less lock-in with iTunes than there is with cell phones. You cannot take a Verizon phone and make it work on TMobile.
I'll stop there. As I said it raises a lot of interesting questions, and I just don't have time to consider all of the angles right now.
One thought that had occured to me though, is the difference between Microsoft and Apple in this regard. Is Microsoft able to stave off a certain amount of anti-trust criticism because it licenses it's technology and therefore has the appearance of making the Dells of the world richer? Does Microsoft "seem" to play nicer in this regard?
Clearly Apple is not forcing anyone to buy an iPod, but if they buy songs on iTunes, they are locked in to the iPod, ostensibly forever. That is a difference between cell phone lock-in, which now that your phone number has been liberated, can only lock you in for the time on your contract.
Should the government similarly force Apple to free up iTunes songs to be played on any device using any software? Am I really locked in when I can buy CDs and rip to MP3 which will play on iPods and other players too?
I'm torn between loyalty to Apple and it's rights to sell it's products as it sees fit and wanting to free up my songs.
As much as loath the thought, this lousy lawsuit has the potential to really change the way we think about digital content.
TMO :: View topic - AAPL Breaking News and Events
apple antitrust suit - Google News
Is iTunes/iPod a market unto itself? Is the Macintosh?
Are people buying iPods because of the iTunes lock-in, or the quality of the product, or even because of the image/advertising?
It depends on how you look at it and it's even more interesting when you parse the words of Steve Jobs. Steve has always compared Apple to Porsche, both having small marketshare, and both selling premium products. One of the main differences is that Apple offers products at both high-end and low-end price points while Porsche doesn't offer as much if anything at the low-end. The Mac-mini and the iPod Shuffle 512MB underscore this point. Both command a price premium over similar products, but both are clearly targeted at price-sensitive users.
You could argue that Apple wields the same Monopoly control over the Macintosh that they do over iPod, with similar control over both the hardware and the software, but you won't find anyone suing Apple for anti-trust regarding the Macintosh. The spectre of Microsoft makes that impossible, even if Apple does have monopoly power within the unique Mac market. The Mac's market share compared to Microsoft or even other computer makers is miniscule but with iTunes and the iPod, ah, with iPod, it's a whole different story. Apple is clearly the market share leader.
So is there competition for the iPod? Sure, if you count products that cannot play files purchased on iTunes, and why wouldn't you. Lock-in is nothing new, look at cell phones. Why should iTunes be any different than cell phone networks? And there is even less lock-in with iTunes than there is with cell phones. You cannot take a Verizon phone and make it work on TMobile.
I'll stop there. As I said it raises a lot of interesting questions, and I just don't have time to consider all of the angles right now.
One thought that had occured to me though, is the difference between Microsoft and Apple in this regard. Is Microsoft able to stave off a certain amount of anti-trust criticism because it licenses it's technology and therefore has the appearance of making the Dells of the world richer? Does Microsoft "seem" to play nicer in this regard?
Clearly Apple is not forcing anyone to buy an iPod, but if they buy songs on iTunes, they are locked in to the iPod, ostensibly forever. That is a difference between cell phone lock-in, which now that your phone number has been liberated, can only lock you in for the time on your contract.
Should the government similarly force Apple to free up iTunes songs to be played on any device using any software? Am I really locked in when I can buy CDs and rip to MP3 which will play on iPods and other players too?
I'm torn between loyalty to Apple and it's rights to sell it's products as it sees fit and wanting to free up my songs.
As much as loath the thought, this lousy lawsuit has the potential to really change the way we think about digital content.
TMO :: View topic - AAPL Breaking News and Events
apple antitrust suit - Google News
5 Comments:
A 512GB iPod Shuffle? I want one of those.
In the 1950's Kodak had a lock on kodachrome film. You could buy other films that could be processed "wherever" but the kodachrome-Ektachrome (both slide films) developing process was exclusive to kodak, and because it was "hands down" the best, least grainy, clearest color film on the market,(in fact, the price of development was included in the cost of the film) Kodak had an exclusive. Ansco (makers of Anscochrome) along with a variety of film processing companies sued Kodak for monopoly practices. Though Kodak created the film and the processing the courts ruled that they had to provide the processing components on license to whomever wanted it. Local film developers jumped in. THis ultimately affected all kodak's color film. For awhile it increased kodaks share of the market, but when the Japanese companies and Polaroid came kodak took quite a hit. I thing this is probably really parallel to Ipod and Itunes.
yea but can't you buy itunes songs ,then burn them to a disk to play in ANY device? I DO! i don't own an ipod yet; so where's the balls in the argument that when one buys itunes songs that they are "stuck" with a ipod to listen to them? we are all being lied to
Uhhh, yeah, I want a 512GB iPod Shuffle too. D'oh! Thank for pointing out the error, er, anonymous. I've fixed it.
Good points about Kodak. It will be interesting to see if those points will be considered in the trial.
Yes, of course you can burn CDs and re-rip to other players. Legally. It's just a big pain. If I'm going to spend time ripping CDs, I want an original, uncompressed copy to do it from. I only buy from iTunes when I want a single or they have something exclusive. I still buy my albums as CDs. But your point is well taken, I COULD do it in a pinch.
When you factor that in, iTunes has even less lock-in than certain cell service providers enjoy, ahem Verizon.
That argument will obviously be taken into account in the trial.
I can understand why the antitrust has been brought, companies in that market most likely want to somehow stop the proliferation of Apple's successful iPod. As to the merits of the lawsuit, I don't think it will slow down Apple but it has the potential of distracting it.
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