However the greatest momentum for Apple came from an unexpected source: the iPod. iPod was an integral part of the digital hub strategy. It was started in early 2001, when Steve Jobs realized that he had misplaced his enthusiasm for “desktop video”, i.e. the ability to edit movies on the computer — which was still far from mainstream. What was really hot at the turn of the century was not movies but digital music, as exemplified by the success of Napster. He focused on catching up and bought an outside hardware developer to work on Apple’s own MP3 player, which was brought to market in record time, just in time for 2001’s holiday season.
iPod’s breakthrough features — its beautiful design, its brilliant user interface and click wheel, its fast FireWire connectivity and its ability to sync with iTunes seamlessly — made it a hot seller from the start. For the first time, people were buying Macs just so they could use this little music player the size of a cigarette box. Apple cashed in on that success and went further in the following years, first by making iPod Windows-compatible in 2002, then by opening the iTunes Music Store and developing a Windows version of iTunes in 2003.
As of 2006, after Apple had continually pushed innovation in its music business by introducing iPod mini in 2004, iPod shuffle then iPod nano in 2005, and expanded its Music Store internationally, it had become the undisputed leader of the new digital music era. A significant landmark was passed in 2006 when Apple’s revenues from iPod equaled those made on computers. For the first time in its history, the firm from Cupertino had left its niche markets to become as influential a player in consumer electronics as Microsoft was in the PC space. iPod’s market share was close to 75%!
by. all about steve jobs
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