OK. Apple has the store, the great iTunes software, synchronization, the iPod itself and the coolest brand. That's enough to win in any segment of this rapidly growing portable music market.
The only way other players will gain a foothold is if they do something more or better than iPod does. And those competitors can be quickly dispatched by new targeted iPod offerings.
Here are some spots Apple may want to address and dominate:
- flash player with screen
- video-player
- cell phone
The flash player with screen will come within 6 months I would guess. The video-capable may be as soon as that too. The iPod cell phone has already been previewed by Motorola but, unfortunately, the power of cell carriers diametrically conflicts with Apple's strategy of controlling all major pieces of an offering. I'm betting on Steve's salesmanship and rep as a visionary to find a way to twist some carrier arms and get something insanely great out the door in the next 9 months.