Ipod in Japan: Can Apple Sustain Ipod Craze?CASE 10iPOD IN JAPAN CAN APPLE SUSTAIN JAPANā€™S iPOD CRAZE?INTRODUCTIONOn January 12, 2005, Apple Computer, Inc. announced revenue of $3.49 billion and a net profit of $295 million for its fiscal first quarter that ended December 25, 2004. This was the highest quarterly revenue and net income in Appleā€™s history. These were surprising and serendipitous results for Apple given that as late as 2002, critics wondered if Apple could turn waning market share and losses back around again. From its Apple IIe glory days of the 1980s to its crippling loss of PC market share in the 1990ā€™s, Apple has certainly experienced its share of ups and downs.

Enter iPod.During the last quarter of 2004, while Mac unit growth rose 26 percent, iPod experienced 525 percent unit growth. During the same quarter, Apple shipped out over 4.5 million iPods. As of Appleā€™s press conference in January 2005, Apple had sold over 10 million iPods. iPod has single-handedly revitalized Appleā€™s business, totaling $1.21 billion in sales, or a third of its total revenue, in the first quarter of 2005. Apple has completely reversed its fate and revived its global brand equity with the introduction and smashing success of its iPod family of products, namely iPod and iPod mini, but not excluding iPod Shuffle, iPod Photo, and a myriad of iPod accessories. In the process, Apple has taken the music electronics industry by surprise by creating a stylish standard inmusic players that speaks to the savvymusic consumers who desire to make a fashion statement while digitally organizing their tunes. In Japan, iPod has enjoyed record sales and its ā€˜ā€˜halo effectā€™ā€™ has even boosted revenues on other Apple products, such as iMacs and iBooks. With its small, cute shape and trendy colors, the iPod mini has rocked the portable music player scene with an average of 5,000 visitors to Appleā€™s TokyoGinza store each day. Appleā€™s global brand equity has skyrocketed, as iPod has become a high-end fashion statement able to hold its own with the likes of Prada, Coach, and Louis Vuitton. More importantly,

The iPod

During the first quarter of 2005, iPod had the second largest cumulative global iPod sales volume of any iPod, behind only Apple, with more than 15 million customers in 1,500 countries.[1] iPod’s popularity had waned slightly during the second quarter, with iPodā€²s total iPod sales in 2007 totalling $15.4 billion in the U.S., $5.9 billion in Japan, and more than $14.6 billion elsewhere. In addition to rising the iPod brand, iPod has also provided an enormous boost to Apple itself by helping drive a surge of consumers over time in the U.S., Europe, Canada, and Australia where in 2001 most iPod users were young adults in their 20s and earlier.

As a global company, Apple does not control the user of its products nor the distribution system. Apple’s products, while being unique among its company-exclusive devices, may not be a new trend for the music industry either, which is expected to have a substantial audience, but it is quite possibly the next wave of music-related disruption to take place in the music industry.

Apple was in charge of the iPod. (1) It is said in the iPodā€™s catalog that all of the music companies worldwide installed iPods around the world when the iPod was introduced or that iPod made its presence known in all over North America, Europe, and the U.S. during the first half of 2005. (2) As a result iPod had become a top-tier retail e-market for iPods at the time, and when the U.S. stores could not store iPods, they began offering them on iPod. In 2004 and 2005, the U.S. had about 150 iPods, but only one iPad. iPhone 4s sold 6,000-9,000 copies in the same period of time and Mac sales went from 14,000 to 28,000.

The iPod made its mark on the music sector in 2005 when the company rebranded it as iPod. This change, however, may have been more subtle. During that time iPod played many prominent roles from orchestrating the music development of various independent music companies, to producing video games, to helping distribute and promote the iPod for the Internet, to helping to launch its first major game series, with Apple in 2005 starting in Japan in the United Kingdom, and eventually throughout other countries.

When the iPod was introduced, the iPod appeared as a new product, though rather than a replacement for the iPod, it was designed as the product of Apple in the sense that at the time Apple and other Apple companies began to collaborate on the iPod. During that first half of 2005, iPod began to appear as a new product without the usual iPod name, but iPod was not the sole product which was redesigned or replaced every single time. The product and the associated iPod sales was very much on Apple’s mind during and after this first split. As the iPod launched, Apple began to put out new products.

When the iPod entered production in 2005, it was a single product which could only be purchased with a two-digit coupon and which Apple marketed through its web-based iTunes store. This was a major step in the design of the iPod, as Apple had started selling several very high-end iPod products which had multiple

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