by Playfuls Staff |
18th January 2006
Rumor has it that Jobs’ Apple is secretly developing some sort of mobile communication device, that would combine the features of the iPod with those of a mobile phone (some kind of an iPhone). And these rumors seem to be backed up by the company’s recent trademark applications.[more]
Thus, according to Antone Gonsalves for TechWeb News, in early January, the Cupertino, Calif., company filed four trademark applications for the term "Mobile Me." The applications covered areas such as computer services, providing music over a local or global communication network, portable digital electronic devices and software, and telecommunication services.
Apple was not immediately available for comment, but the filings obviously sparked a storm of speculation about whether Apple was working on an iPod phone or not.
However, this wouldn't be Apple's first venture into the cell phone business. In September, Apple joined with Motorola and Cingular on the Rokr music phone, which ran Apple's iTunes software. But criticism from analysts about the meager capacity of 100 songs led some to question whether Apple is gearing up to release a true iPod phone or perhaps start its own niche mobile phone carrier.
In recent months, analysts have questioned whether Apple deliberately hampered the Rokr's storage capacity to protect its popular iPod line of music players, make way for an iPod phone or possibly roll out its own mobile phone service that includes a robust music phone. Apple representatives declined to comment on the speculation.
"We haven't seen anything that looks and feel like an Apple product yet," Julie Ask, analyst for JupiterResearch said.
Michael Gartenberg, also an analyst with JupiterResearch, said it was a "low probability" that Apple would build an iPod phone. Apple currently holds about 75 percent of the market for digital media players, and it would make more sense for the company to continue focusing on features and services for the current product line.
"What they need to do is keep the product fresh, so it remains feature and price competitive with competing products," Gartenberg said.
If Apple went with an iPod phone, then Gartenberg would expect it to complement the iPod, but not replace it.
In a research note, analysts Albert Lin and Shaw Wu of American Technology Research said Apple appears to be extending its iTunes and Mac product lines into new areas, including phones and mobile content services
"Apple has long been rumored to be a (niche phone carrier) candidate. We believe this would be a successful strategy, given the type of content and markets Apple has had success in. ... We believe additional branding for services coming to the market would heavily involve wireless downloading of content to maximize sales and meet customer expectations for ease of use," they wrote.
The barriers are low for companies seeking to become a niche carrier, also known as a mobile virtual network operator.
A niche carrier, such as ESPN, buys wholesale minutes from established carriers like Sprint, Verizon and Cingular and sells personalized devices, such as branded cell phones, and services. In some scenarios, niche carriers who rely on back-end business providers, like San Francisco's Visage, to handle billing and customer service can get off the ground for a few million dollars.
Experts, however, say Apple would have difficulty going that route, because it doesn't produce content, so if the company decides to hit this market, it will probably be with some kind of phone.
