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Why The iPhone Is Not Big News For The Music Industry

Anticipation of the iPhone launch has grown to a feverish pitch including glowing reviews from influentialIphone Wall Street Journal tech writer William Mossberg and the NY Times.

But three major hurdles will keep the iPhone from having a major effect on music sales.  First is price At $500-$600, the iPhone is out of reach for most consumers particularly younger music fans.  Second is availability.  With only AT&T carrying the phones for the foreseeable future many will avoid the hassle of switching carriers.

Applelogo_2 Third and most important is that Apple's iPhone does not support over the air downloads.  Modern consumers want what they want when and where they want it; and that is particularly true of those who carry music enabled cell phones.  At 99 cents music can be an impulse buy; but not if you have to get home and hook up to your PC to get it.

The iPhone is elegant and even revolutionary technology, but it's not yet disruptive technology. There's a big difference.

Take your own video tour of the iPhone here.

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