History of the iPod

• Jobbs returns to Apple
• Jobbs says you can't ask the consumer what you want... but you can create an environment where everyone gets together and brainstorms until you say "that's it! that's what we'll do!"
• Decide to do the iPod
• Napster goes down, so need a new electronic way to obtain music
• Designs iTunes
• Same day of iTunes launch, announcement of 3rd gen (windows compatable)
• Sells 1 mil songs in 5 days, 200 mil by 2004
• Now Jobbs wants to expand the iPod line so that there's a size for everyone and for everyone's wallet - this blankets the market and makes it hard for competitors to get a niche
• In Oct 2005, they market the video iPod, something that Jobbs has always said would never happen - the consumer will never get the same feel of video when you watch it on a portable screen. Conspiracy theories state that Jobbs suggests this is bad all along to deter competitors.
• Apple now has 4 iPods at 4 pricepoints, so now there's no excuse not to go with iPod when choosing an mp3 player
• in 2005 - own 75% of US mp3 player market - 32 million iPods
  
• "the reason for such a large % is they stay ahead of competitors and stay unmatched in the market"
• In sept 2006, iTunes sells song # 1.5 bil, 3 mil per day, 5th largest music retailer in the US, bigger than Tower and Sam Goody.
• "80% of Microsoft employees who own mp3 players own iPods"
• Cultish following - noone else makes fake players/phones for other companies
• The iPod system is supposed to goto 1 bil $, making iPod the only device with a $1bil side business. An iPod owner spends $100s on accessories and iTunes - that only works with iPod - ppl won't jump ship after that investment.

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