In the "yet another iPod competitor" category, Sandisk debuted devices that scale all the way through eight gigabytes - double that of the iPod Nano, with a similar style to and price of the Nano, giving Apple what some have termed its most formidable competition in years, since the iPod's having grabbed more than three quarters of the MP3 player market. Oddly, after decades of being trumped by Microsoft's inferior software and hardware, Apple has the shoe on the other foot when it comes to the iPod, as even if they were to be trumped on technology (and there's no indication that's happened here), their immense market share and momentum will make it very difficult for competitors to make inroads. In fact, Wired News says that iTunes has become such a dominant entity in the music business that even the initial holdout bands will have to make their music available.
In fact, in the face of competition from online sales, such as iTunes, Tower Records announced today that it is filing for Chapter 11 bankruptcy protection amid declining sales.
Interestingly, some media pundits, including GigaOm, are saying that Apple has such interest in the music and video space that they are suggesting the Cupertino company make a play for online video site YouTube. Although I don't see it happening, Apple is one company who could potentially strike a deal for the $1 billion-valued Web 2.0 giant. However, Apple does not have a history of purchasing content sites. The company's middle of the road .Mac services were all home grown, and acquisitions have tilted more to the software arena.
Lastly, there was considerable fallout at AOL after the company inadvertently leaked thousands of search queries from users in a massive violation of privacy - as discussed earlier in "Privacy On the Web Is Gone". The online services company reacted swiftly by forcing the resignation of AOL's chief technology officer and other minions who had a part in making the breach happen. As Good Morning Silicon Valley writes, imagine how that would look on the resume... "Reason for leaving last job: Violated the privacy of 600,000 company customers". Ouch. (More)
Listening to ''Aphrodesiac'', by Nu Mood Orchestra (Play Count: 7)
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