The Five Markets Apple Already Dominates

On June 6, Apple announced its new storage service, iCloud. The platform will combine application services on multiple kinds of devices with a seamlessly integrated online, cloud storage system. The service is meant to help users manage content, such as music and photos, in a way that makes their “digital life” easier, a term used by Steve Jobs. This means that users will not be chained down by connecting devices, such as their iPads and iPods, to their computers to sync files. The syncing is automatic.

Apple has produced a number of wildly popular products over the years. Some of these were successful because they were so new that there was no real competition, like the iPad. Others have excited consumers by improving on existing products developed by competitors. In both cases, the reoccurring feature among Apple’s products has been nearly peerless design and user experience. It was what people have come to expect from the brand.

• Read The Five Markets Apple Already Dominates

Apple now has another chance to prove its reputation again with iCloud. Apple products have always seemlessly merged software, services and hardware. It is impossible to imagine the popularity of the iPod without iTunes, and vice versa. The same holds true for the iPhone and the App Store. The iCloud, in a way, is the culmination of this trend. “This is a milestone in computing,” said Mike McCue, co-founder of magazine app Flipboard said in the New York Times. “The fact that you no longer have to think in terms of files and folders is a big deal.”

Although there have been other products made to link devices through data storage, such as Dropbox, it is likely that Apple’s iCloud will take the idea further and do it with more style. If the company’s history is any indication, Apple may become a leader in cloud computing. The company has sold over 15 billion mp3s through its iTunes store and over 14 billion apps through its App Store. This customer base is what gives Apple an immediate edge. The fact that Google and Amazon already have cloud platforms on the market does not necessarily mean they will be more successful than Apple. Apple has excelled in a number of markets already, proving that they almost always do better than the competition even if the competition comes to market first.

These are the five markets that Apple already dominates.

1. Mp3 Downloads
> Apple’s product: iTunes store
> Market share: 70%
> Units sold: 15 billion+

Apple’s iTunes store, which opened in 2001, completely changed the music industry by altering the way people purchase songs. The ease of buying music from one’s computer, combined with the organization offered by iTunes, propelled the program to industry leader, and now claims over 15 billion songs sold. According to the latest data available from The NPD Group, iTunes holds a 70% market share of digital music sales. Amazon is the second largest distributor, with 12% of the market.

2. Mobile Applications
> Apple’s product: App Store
> Market share: 59%
> Units sold: 14 billion+

Apple’s App Store was once the dominant provider of mobile applications, with 81% market share in 2008. Since that time, a number of strong competitors have emerged, such as the Android Marketplace, causing Apple’s share to decrease to 59%, according to mobile research firm research2guidance. Still, this is a significant majority. To date, the store has sold more than 10 billion apps.

3. Tablets
> Apple’s product: iPad
> Market share: 82%
> Units sold: 20 million+

There was a bit of controversy when Apple first released its iPad in 2010. At the time, there was no tablet market and it was unclear whether there would be any demand for a product that exists somewhere between laptop and smartphone. Sure enough, the product was a hit and now Apple dominates the market. According to a report released this May by Nielsen, the iPad controls 82% of the US tablet market. The next greatest share, a mere 4%, is owned by the Samsung Galaxy Tab.

4. Online Movie Sales
> Apple’s product: iTunes store
> Market share: 64.5%
> Units sold: 140 million+

For 2010, Apple was the leader in sales of movies online in the United States, according to a report published by research firm iSuppli in February 2011. Proving its dominance over other online movie sellers, such as Microsoft, Sony, and Walmart, Apple had 64.5% market share. The closest competitor was Microsoft, with 17.9%.

5. Mp3 Players
> Apple’s product: iPod
> Market share: 76%
> Units sold: 300 million+

Apple’s iPod has been the leading mp3 player since its release. The SanDisk Sansa Clip and the Microsoft Zune were both expected to be serious competition at some point, yet they could not  compete with iPod. The first seven, best selling mp3 players on Amazon.com are variations of the Apple iPod, including the iPod touch, iPod classic, and iPod shuffle. The product’s true competition is the growing popularity of smartphones.

Charles B. Stockdale