Marketing the iPod shuffle

This has already been done ad-nauseam throughout the web, but I just wanted to put my 2 cents in. The iPod shuffle is about changing the rules of the digital music player market. It is not about competing on a feature-by-feature level. This product is about marketing. Apple can outspend the others on marketing. Creative doesn't quite get this, as every comment I've seen from them goes into how much better their features are, or how many more features they have. Features aren't as important in this space. It needs to be good enough, but more importantly, it needs to make the buyer feel better for making that decision. This isn't normal in the computer products business -- it is quite unique to Apple, but it is normal in the consumer electronics business. It's normal in any consumer product business. This is key, and this is how Apple is competing. The other important factor to consider here is margin. Apple likes margin. Margin allows them to spend what they do. With all the components that aren't in the iPod shuffle, the cost is a lot lower. The price is just below the competition, but the competition has spent money on LCD screens, FM tuners, and recording. Where do you think that leaves their margin? Most of their competition is focused on razor thin margins in order to compete (with all those extra features). Some say that this is capitalizing on the iPod's iconographic status, and this is partially true. It certainly doesn't hurt their marketing efforts. The iPod was the beachhead into this market, but they needed to tap more of the market, as it's still growing. They aren't sacrificing margin yet, as there is still a long push ahead. The iTunes Music Store ties all these products together, and it was also the factor that solidified this market. It is still small compared to the rest of the music industry, and that is why they need the margin from the iPod. Until this market is mature, the two products need each other. The iPod provides the revenue to build up the store, while the store provides legitimacy for the iPod. The lock-in allows Apple to control the whole product experience, and will help the market grow. Apple will only give up control when it absolutely has to.