Apple Admits Not Much iPhone music

Posted on May 19, 2008
Filed Under iPhone General

Apple has approached some major music labels trying to improve the future 3G iPhone by expanding the range of ringtones and other musical content available on it. The negotiations are very active at the moment and a final deal has yet to be set. A deal may come after June 9, a logical date for the introduction, but the company’s plans are not given publicity to.

Ringtones are profitable part of music business these days, because the price for a short piece of a tune is higher than for the full one. Now Apple offers 99-cent upgrade ringtones, the same as to its regular 99-cent songs, but Apple is looking to expand its inventory, as not all tracks can be converted into ringtones.

Apple is going to add answer (ringback) tones (songs a caller hears while waiting for answer. These command is even higher in price than ringtones.

Also Apple discusses whether it can sell songs from iTunes store right to the iPhone via the cell-phone network, as the next generation of phone is expected to have much faster 3G technology. To add more, music labels argue that they are not enough paid for an over-the-air download, contrasting a standard track bought over the internet with the wholesale price of 70 cents.

Expectations are high, as Apple is known as the successful dominant player in digital music. Apple has arranged deals with most carriers of the world. (575 million cellphone users estimated, as well as more than 153 million potential customers from the six countries where the iPhone is nowavaliable).

But the wireless market is growing and developing, and everyone is trying to add more music features to their devices. So Apple should count with other labels in order not to lose music market. In Europe the positions of Nokia and Sony Ericsson are strong and the cold reaction to the iPhone is evident.

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