Why Apple Should Not Enter the Mid-to-High-End Record Player Market
An In-depth Look at Why Apple Might Struggle with This Niche
Should Apple make a mid-to-high-end record player? The answer is unequivocally no. This proposal fails to align with Apple’s core competencies, financial strategy, and long-term business vision. Here’s why.
First: Incompetence in a Non-Core Market
Apple is renowned for its prowess in the tech industry, particularly in creating innovative products that revolve around computing and connectivity. A record player, on the other hand, is an analog device that requires a different set of skills and pathways to excellence. There are already established companies like Rega, SME, and Berenstein that are highly skilled in this niche, and attempting to compete without these core competencies would be a misallocation of resources.
Furthermore, the success of a record player would require significant investment in research and development to match the quality of these established brands. If Apple were to achieve success in this market, the costs associated with reaching that level of quality might outweigh the potential profits from selling record players. The financial benefit of such an endeavor is questionable at best, given the resources required.
Second: An Unprofitable Market
The market for mid-to-high-end record players is far too small to be a viable source of revenue. According to recent studies, vinyl records and turntables saw a modest increase in sales over the decade, but the numbers remain very low. For instance, in the United States, only about 72,000 turntables were sold in a single year, compared to the millions of iPhones sold daily by Apple. Would it be sensible for Apple to divert resources from its primary products to a market that is so niche and small?
Moreover, even if Apple were to make a record player, it would need to compete with established brands that have long-standing relationships with consumers. The market already has its champions, and creating a product that competes in this space would require a substantial financial and marketing investment that would need to be recouped over a long period, if at all.
Third: No Synergy with Primary Product Lines
One argument might be that a record player could complement existing Apple products, such as AirPods or other audio equipment. However, the practicality of this idea is debatable. Vinyl records are bulky and heavy, making them impractical to play through AirPods or integrate into any portable device. Even if someone were to invest in a record player, the chances of them wanting to transition to using AirPods to listen to vinyl are slim. The market for vinyl enthusiasts does not overlap significantly with the market for wireless earbuds.
Additionally, Apple’s product lineup is designed to promote its digital ecosystem, not physical media. For instance, Apple Music, iTunes, and the App Store are all geared towards digital content consumption. By focusing on digital media, Apple has been successful in driving sales of their primary products. Introducing a physical media product like a mid-to-high-end record player would be at odds with this strategy.
Fourth: A History of Missteps in Non-Portable Audio
Apple has had a rocky history when it comes to non-portable audio products. The iPod Hi-Fi, an attempt to make a high-fidelity portable MP3 player, was decidedly unsuccessful. Similarly, the HomePod, despite its sophisticated technology, has struggled to compete with established brands in the smart speaker market.
A record player would represent yet another foray into a territory where Apple lacks experience and reliability. It would be challenging for Apple to deliver a product that competes in terms of sound quality, ease of use, and aesthetics without the expertise and history that brands like Rega and SME bring to the table. Investing in such a product might dilute resources that could be better used in developing and refining its core offerings.
Given these factors, it is clear that entering the mid-to-high-end record player market would not be in Apple’s best interest. Instead, the company should focus on its strengths and continue to innovate and improve upon its existing product lines.