“from the Mp3 Invention to the Ipod Innovation: the Disruption of the Music Industry”

This additional elasticity in Apple’s business strategy shows its aspiration to conquer Dell, HP and Microsoft, done with a exceptional and groundbreaking mixture of digital media and personal computer creations.

Attention Getter: In 1984 the first cd play or “Walk-man” was released. The first laptop came out in 1982 and cost a mere $8,150 which comes out to $19,630 today. In 2001 the first smartphone was released. All of these devices since have been outdated and updated. And the company that runs them all is Apple Co. And Apple would not be where it is if not for the mastermind behind it all, Steve Jobs

Apple Inc. has been dedicated to innovation ever since the company was first formed. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy (Mortensen, 2010). This strategy has served Apple well; especially during the last few years. The iPad, iPod, and iPhone were all born from this strategy. Furthermore, producing these innovative, user friendly, and design oriented products has earned them a considerable amount of customer loyalty.

MP3 is an audio format that allows users to compress and send music files easily over the Internet. The major problem with this music sharing is that most of the files are pirated, which has caused a stir in the music industry. Music companies and music artists have been complaining about how their music is being stolen and therefore lowering their album sales. The major blame has been put on Napster and other file sharing software available on the Internet.

In 2000 the digital music was the next big thing in how consumers listen to music. The technological shift in music changed how the relationship is between the artists, recording companies, promoters and music stores on how they operate today. In the late 90’s and early 2000’s Peer-to-peer (P2P) networks allowed free exchange of music files with companies like Napster and Kazaa was a big step that allowed consumers to store large libraries of music. With the cost of hard drive space going down; it allowed for pocket-sized computers to store more information in a smaller space that open the door for apple to step in with the unveiling of the iPod and iTunes. These systems made it possible for storage and playback that gave consumers the

Since the iTunes music store was introduced on April 28, 2003, gross music sales have plummeted in the United States - from $11.8 billion in 2003 to $7.1 billion in 2012, according to the Recording Industry Association of America (Covert). Counterintuitively, during that time consumers were buying more music than ever. How is that possible? It 's because iTunes had made digital singles popular and was selling them cheap. This would change the music industry forever. In 2000, Americans bought 943 million CD albums (Covert), and digital sales didn’t even make a dent in comparison. But by 2007, those inexpensive singles overtook CDs by a wide margin, generating 819 million sales compared to just 500 million for the CD.

ITunes created the first legitimate digital music store that competed with piracy. On April 28, 2003, Apple released the iTunes store. The music industry had finally an application to earn money from the sale of digital music, after years of suffering from the power of Napster and piracy. Steve Jobs created a new link between the artist and the customer. Indeed, instead of having to go to a store and

The shifted new strategy of Apple was initiated by the release of iPod in 2001, followed by the iPhone in 2007, then by iPad in 2012. It was the iPod that brought significant growth in Apple. Initially, the iPod was just another MP3 but soon became the icon of the digital age due to its sleek design and user friendly interface. Moreover, iPod could sync with Windows as well as a Mac and offered accessory markets. Soon enough all the competitor in MP3 market had to face the challenge of consumers comparing their model with iPod. However, the greatest challenge that the competitors had to face was the introduction of iTunes store.

The development of affordable technology in conjunction with the introduction of the internet, shifted the consumer market, by way of downloads and file sharing. Technological advancements led to the compression of music into the MP3 format, thus allowing consumers to download

The iPod and iTunes drastically changed the music business and the way we interact with our music players.

Apple Computer redefined the portable digital music player market with its launch of the iPod digital music player. This began in January of 2001, when it introduced its jukebox software called iTunes. This software enabled Macintosh users to import songs from audio CD's converting them to MP3 format and storing them on the computer's hard drive. It later launched the iPod digital music player in October of 2001. The iPod was designed to synch to songs and playlists from iTunes via a Firewire cable connection. Once music was downloaded, the iPod provided for 10 hours of continuous play from its rechargeable lithium-polymer battery. Media is stored on iPod's internal hard disk (Day, 2005).

Different content and usage rules based on the number of computer transfers, CD burns and portable music transfers

Steve Jobs acted as an innovative micro-manager, which lead Apple to create a new market for different devices. His devotion, drive, technological skills, attention to detail, and the hiring of capable people to work with helped him invented the iPod, a user friendly mp3 device, and iTunes, a web service to buy music, which brought Apple large profits and continues to do so today. The iPod changed the way we consume music and reshaped the music industry and iTunes helped consumers download, and organize digital audio and video on personal computers. (Rose)

Also, as the purchasing power of the common has risen in various markets across the global, the purchasing of luxury products have gone up. For examples, the iPhone, iPod, iPad and the most latest technology, iWatch. Having these products are considered as statues symbols in many societies which have also increased the sales of Apple Inc. products. Another big social influence to the Apple Inc products is the rapid growth of the music industry, which have improved markets over the cyber space as well. The main exclusive music store is the iTunes and it is ahead of any of their competitors. Thus, in all Apple products benefitted from the social aspects as it has started defining a modern individual lifestyle.

As most of us know, downloading mp3’s has seemed to be a big computer demand over these past couple of years. Typical college students around the United States would spend hours downloading files to their computer that would just contain their favorite songs they listen to daily. But why are these students wasting their time and their Internet use downloading simple songs they could find on CD’s? Well the main idea here is that most of the mp3’s that people download off the Internet are free. You do not have a fee to pay when you download this music. Also, here is the first chance ever where people are able to download their favorite music without taking up that much space on their computer.