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iPhone – the new Betamax?

By Tom Wood on 18 January 2010

Betamax tapeWith Apple dominating the market in handheld touch-screen mobile devices in the form of the iPhone and iPod touch I cannot help but think back to the early days of video players/recorders and the war between Betamax and VHS.

There’s no doubt that the iPhone and iPod touch are desirable pieces of kit. They are sleek, attractive, and pretty intuitive. There are over 90,000 apps available, covering anything from personal finance to arcade-style video games. The apps themselves are generally inexpensive, or even free in many cases. On top of all this, the internet browsing capability and the music player make this an all round excellent product.

With one exception, Apple has locked down the way in which users can input new material onto their iPhone. Almost everything has to be ported onto the device through Apple’s iTunes software. Even music originating from users’ own purchased CD’s has to be converted into iTunes format before being loaded onto the iPhone. Users cannot share content with other iPhone users (other than photo’s), and content can only be loaded onto the iPhone from a single designated PC or Mac – not exactly flexible.

Back in the 1970’s Sony similarly dominated the VCR market. They had developed Betamax, the standard for video recording and playback, and refused to enter into any original equipment manufacturer arrangements with others, choosing to retain and control all manufacture and distribution themselves. When JVC developed VHS, they licensed it to virtually anyone who wanted to distribute it, quickly overtaking Sony’s restrictive Betamax, and eventually causing Betamax to become all but obsolete.

So, could Apple’s iPhone and iPod touch end up in the same historical dustbin? There are already many comparable touch-screen products coming onto the market that are less restrictive than the Apple family. The world of personal electronic gadgets is fast moving and, generally speaking, people do not like to be told how they should use their latest must-have devices.

It’s a bold conjecture to make, but unless Apple relaxes the marketing and distribution of content for their iPhone and iPod touch, they could be destined for a fall.
 

Author: Former Foolproofer Graham Uff

 

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Tom Wood

After business school my education began in Soho at Ogilvy & Mather Direct. Very talented and clever people like Steve Harrison and Rory Sutherland helped me learn the im...

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