iPod's Unreliability May Be An Achilles Heel (AAPL)

| About: Apple Inc. (AAPL)

The Stalwart submits: A couple days ago we said that the only threat to the iPod may be the iPod because the rapid introduction of new products has produced a thriving market for older-newer iPods. So naive of us. The secondary market for iPod must be a myth because iPods are so unreliable and really don't survive into the secondary market without major refurbishment being done. Fred Wilson sums up nicely how the iPod monopoly works and the slight weakness that it has:

But I believe that there is a sliver of an opening in the iPod monopoly based around four issues:

1) The mean time to failure of the iPod is about six months (based on my experience)

2) The planned obsolescence of each new iPod format after about six months (ie photo iPod then video iPod).

3) The insistence on a proprietary music format and now video format that locks the customer into the iTunes music store.

4) The consumer's desire to play music on their phones.

I don't see anyone rushing in to supplant the iPod yet, but it sure feels like the monopoly is getting a bit tired.

Watch out for Samsung.