1.1 The background of iPod
The iPod was innovated by Tony Fadell, a former employee of General Magic and Phillips. Fadell wanted to bring a player by using small hard-drive player that can be link to a delivery system where users can obtain or download music legally (Hormby and Knight. 2005). In October 2001, Apple announced their first strike into the digital music market by announcing the iPod. The ...view middle of the document...
The iPod could compete with both the flash-based player and hard disk based player. Apple was able to make the iPod smaller by using a 1.8" hard disk. Apple believed that the iPod represented the perfect combination between both size and storage capacity. Beside size and capacity, iPod also had impressive industrial design where it has been missing from the other hard disk players in the market. Apple also believed that the iPod is such a potential product because if Apple misjudged the market, the iPod might be another G4 Cube in its hands. It turned out to be that Apple judged the market very well and the iPod has sold better then anyone had ever expected (iPod n.d.).
2.0 Market Segmentation
2.1 Demographic Segmentation
The demographic segmentation is based on the United States of America market by age, gender, income and ethnic background. In a report by Pew Internet and American Life Project, twenty-two millions of adults owning iPod, thirteen percent of men own the player compared to nine percent of women. Sixteen percent of African-Americans and English speaking Latinos own iPod compared to nine percent of non-Latino whites. Nineteen percent...