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BetaDot » iPod Phone
Apple Investigates iPod Cell Phone

With cell phone power growing at alarming rates, Apple looks to beefing up its iPod with telephony capabilities.



With more and more customers wanting access to digital storage, the market for removable cell phone memory cards has exploded in recent years, growing by 160% last year alone.

The amount of storage demanded is also increasing, as memory capacity becomes a more important feature for mobile devices. In 2005, the average mobile memory card had a capacity of 112MB, which will look pathetic by 2010 when that number is set to grow to nearly 1.6GB.

Many analysts now believe that this trend, along with the constantly improving media functionality of cell phones, will pose a big threat to the Apple iPod’s dominance of the digital music market.

Which is why analysts are paying close attention to Apple, waiting to see if the hardware giant will extend itself into the converged communication and entertainment market.

It is looking more and more likely that Apple will end up manufacturing its own in-house cell phone, and taking up the role of a reseller of wireless service, or an MVNO. The company probably wants a shot at managing the production and marketing process itself, after failed attempts with Motorola and Cingular.

If Apple does indeed decide to throw its attentions into the mobile music industry, it will likely push the adoption of converged entertainment and communication devices, which is expected to grow steadily for the next several years.

Summary

With cell phone power growing at alarming rates, Apple looks to beefing up its iPod with telephony capabilities.


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