THOUGHT: Missing Piece on Apple's Pie
Its been in the news that Apple just recently acquired a data center probably to house their upcoming movie store. This is pretty much a predictable move on Apple's part, but they entirely lack a medium of distribution. Currently, you could only buy songs through using your computer. There's no wireless component available yet (that enables consumer to purchase songs wirelessly). The purchase growth will not be coming from introducing wireless enabled iPods either (if there is such a plan). I'm not saying wireless iPod would not be a good followup for the category, but it would not give Apple the immediate boost in music (and maybe movie) sales. One sector that is currently enjoying the steady growth in wireless downloads are the telcos (offerings ranging from ringtones to music and even live TV). Apple partnering with Cingular (for Motorola's ROKR) is a step forward to that direction, but needs to make it faster while the iPod is still hot inorder to ensure success (before Microsoft gets in).
The logical step that Apple must take is acquiring Palm Inc. This thought have been discussed and argued before, but this move would bridge the gap to march the iPod into the wireless direction. Palm has a clout in telco relationship mainly due to the Treo's success. Palm needs further infusion on capital to develop future products and Apple has the money for that. On Palm's end, only Apple has the company principle which devotes itself to innovation than any other tech companies. Its going to be a marriage made in heaven. Time is ticking down, there's not much left to waste. They both have to act fast and materialize a deal right away. The deal would be beneficial to both companies inorder to move ahead.
W
5.3.06 05:00
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