Monday, August 22, 2005

Enjoy it while it lasts.

That is the message to Apple Computer CEO Steve Jobs from almost every other company in the digital music space vying for consumer attention after several years of domination by the iPod and iTunes.

Today, Apple commands 80 percent of the MP3 player market and 75 percent of online music sales. But even as analysts predict another massive holiday sales season for the company this year, many believe Apple's reign will last only another 12-18 months before the playing field levels out.

Piper Jaffray senior research analyst Gene Munster says, "It's safe to say that nobody can sustain an 80 percent market share in a consumer electronics business for more than two or three years. It's pretty much impossible."

Privately, record company executives say they can't wait. Not because they want to see Apple stumble, but because a less dominant Apple means a more robust market for digital music.