– MP3 device and mobile device convergence is a long way off, unless you’re an early adopter and you don’t mind a poor interface experience, mingled with a tiny, by comparison, amount of storage space.

– Tim, I’d agree that the carrier/operator hurdle is a big one. I can’t see Apple letting it’s brand get cozy with a single carrier. MVNO is the way they’d go, for sure. I just don’t see it happening this year.

I also agree that side loading works very well, but informl research amongst I have conducted amongst iPod users shows a strong desire to be in a nightclub or be told about a song by a friend, and to want to download it immediately.

Also I no longer subscribe to the ‘converged’ device story, unless the device can do the individual functions as well as dedicated devices. With Blackberry I am seeing many users try a converged BB device but return to a basic phone plus older BBB with rugged Qwerty keyboard. Having been a user of many fancy mobile phones over the years they just don’t come close to doing music (& now photos/video) like the iPod.

I think Apple is much better off to continue to develop the iPod as a ‘media’ device – perhaps on board camera, ability to easily share non-protected content between iPods, etc. This could marginalise the mobile phone to being a dedicated voice device only. I’m sure that would make Steve J happy

Having said that, I don’t think that the issue is much to do with iTunes loading. “Side loading” (ie via a PC) works pretty well – and pretty well is fine actually. The threat I see is the mobile phone that allows you to play music, making the stand alone iPod (and other MP3 players) obsolete.

Watch this space, as they say!

Russell

Now if Steve Jobs said to me “so how should we do this mobile iPod then?” here’s what I’d say.

Forget voice, just mobile enable the existing iPods. Let’s partner with one of the largest mobile operator groups at first, say Vodafone/Verizon or Orange or T-mobile. We build a (cool) wireless accessory that plugs into the bottom of the iPod which when it sees network coverage activates an ‘iTunes On-line’ icon in the iPod window. Then the user opens their ‘iTunes’ browser on their iPod and goes and gets the song they want. They download it at a 10c premium per song. There are NO mobile settings for the user to care about, no mobile operator charges at all no matter where in the world they are – only charge through iTunes who pay out the mobile operator.

The device would show as ‘iTunes on-line’ only where there was appropriate 3G coverage – outside of this simply offline, end of story. Trying to achieve this level of simplicity rules out all WiFi/WiMax for now as user would have to get involved. And other media files are probably ruled out for now.

One important piece of functionality with the simplest user experience possible – I think that is in the spirit of iPod.

I agree that Apple will probably launch a device with mobile capabilities, if not this year then next. I’m pretty doubtful as to how successful it will be…there’s a significant number of die-hard Apple fanatics who’ll buy it, but the question I’ll be asking is how well Apple handles other mobile handset functions such as games, TV, and all the other applications that are becoming commonplace. Hmm, I might post about this…
Anyway, a couple of nit-picks:
First, “Mobile Me” is a trademark, not a patent.
Second, the last I heard cameraphones actually increased the sale of digital cameras. The low-end digital cameras pretty much died, but the extra interest in digital photography generated by people playing with their cameraphones caused an increase in the sale of high-end cameras.

Having said that, don’t underestimate Apple. 40% of all US cars are now sold with the capability of being iPod compatible. You’d never have thought that even 2 years ago.

As to the partner, that’s an interesting question. My bet would be on someone outside the top 6 though.

Russell

I think the real question is, who will Apple partner with to build this dream machine?

- How will the mobile phones be sold, through mobile carrier channels? How will Apple ever bring itself to work with the mobile operators and the arcane Telco world who think they are the centre of everything.

- Will iTunes be accessible over mobile? If so this conflicts with mobile operator’s own download ambitions – misguided as they might be.

- What is the real music experience of having your phone and iPod combined? What happens when you playing your iPod at your friends house on his stereo (or a Wedding as I saw on NY Eve, or jogging etc.) and a call comes in?

- The complexity of a mobile phone and its use on global mobile networks should not be underestimated. Sure the other phones available might not be the greatest but they are the result of over 5 years trying to build multi-function devices. SonyEricsson appears to be making good progress with mobile phone music players under the Walkman brand.

There are just so many hurdles for Apple to get over, all of which might take focus off development of the iPod itself, allowing other music/multi-media players to catch-up.