iPod: Brand Stays Strong

Filed in archive Analysis on October 12, 2006

According to The Diffusion Group, Apple's iPod will be difficult to dislodge from its current market dominance. In a survey of 400 iPod-owning US households, 22% said they bought an iPod on name alone. The top reason with 25% was the user interface, which Apple innovated. Other top factors were image-related, including aesthetics, friend recommendations, and the cool factor.

Other and Sound quality areas represented only 25% of users. These areas, which include features and pricing, are the only places where other companies have a real chance to compete. It is a small part of the market that several portable music player companies have to share. The survey paints a bleak picture for new entrants like Microsoft Zune.