The Implications of the Apple iPhone to the Satellite Radio Industry
Wednesday, January 10, 2007 at 12:40 PM
Yesterday Apple dropped a bombshell on the entire tech industry. The most anticipated product of, well ever, was unveiled. And in a way that it seems only Apple can do - it exceeded anyone's expectations.
From the satellite radio industry's perspective, superficially it serves as a "no threat" product, because Apple intentionally downplayed any over-the-air music capabilities. This is smart from Apple's standpoint, because over-the-air downloads are useless to say the least. It's not about convergence, it's about integration. The iPhone won't replace the iPod, but it will most definitely replace your cell phone (even if you need to convince your wife). People have a lot of data that they want to take with them, and the iPhone is the enabler of this.
But the satellite radio industry shouldn't be breathing a sigh of relief just yet.
The iPhone, like the iPod, like Chrysler's MyGig, like Ford's Sync, and like the hundreds of other digital music products out there are all vying for one thing - your ear. Discovery or not, these are all products that erode away at a person's listening time. And satellite radio needs to compete with that.
If there's one thing that Apple knows, it's sex. The iPhone is sexy. So sexy that you want it just from seeing photos of it. Price rationale goes out the window because it's overruled by desire. And XM and Sirius really need to learn how to make their products sexier. Creating sexy products makes others look over your shoulder while you're using it. Sex creates the kind of buzz that you just can't buy.
If we really want to reignite the retail industry, we need to stop thinking like engineers and start thinking like porn stars.
Wednesday, January 10, 2007 at 12:40 PM
Yesterday Apple dropped a bombshell on the entire tech industry. The most anticipated product of, well ever, was unveiled. And in a way that it seems only Apple can do - it exceeded anyone's expectations.
From the satellite radio industry's perspective, superficially it serves as a "no threat" product, because Apple intentionally downplayed any over-the-air music capabilities. This is smart from Apple's standpoint, because over-the-air downloads are useless to say the least. It's not about convergence, it's about integration. The iPhone won't replace the iPod, but it will most definitely replace your cell phone (even if you need to convince your wife). People have a lot of data that they want to take with them, and the iPhone is the enabler of this.
But the satellite radio industry shouldn't be breathing a sigh of relief just yet.
The iPhone, like the iPod, like Chrysler's MyGig, like Ford's Sync, and like the hundreds of other digital music products out there are all vying for one thing - your ear. Discovery or not, these are all products that erode away at a person's listening time. And satellite radio needs to compete with that.
If there's one thing that Apple knows, it's sex. The iPhone is sexy. So sexy that you want it just from seeing photos of it. Price rationale goes out the window because it's overruled by desire. And XM and Sirius really need to learn how to make their products sexier. Creating sexy products makes others look over your shoulder while you're using it. Sex creates the kind of buzz that you just can't buy.
If we really want to reignite the retail industry, we need to stop thinking like engineers and start thinking like porn stars.
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