After years of selling Apples for a 'premium', and getting hardly any of the market share, he sells IPods for a competitive price and corners the market.
Well, at least he finally learned his lesson.
3 mistakes in this message.
a) Steve Jobs never admits he's wrong. Most recent example -- switch to Intel chips. Apple is advertising this as doing a favor to Intel. No admission of guilt in those ads.
b) iPods are not sold at a competitive price. Apple recognizes no competitor to the iPod and at their market share they are correct. Before marketing/distribution costs Apple has a profit margin of 50% on an iPod -- nothing competitively priced has a profit margin of 50%. The Mac mini, a computer sold for a 'premium', has a profit margin of 44% (also before marketing and distribution).
c) Steve Jobs learns no lessons. The dude is an ego-maniac with a cool sense of industrial design.
The real reasons iPods cornered the market:
* first company to produce one that had marketing muscle behind it. Rio, iRiver, etc... too small to get noticed by non-geeks.
* it plays music very well. Unless your definition of music is the gap between songs, it's actually hard to find a player that plays as well (assuming a decent rip to begin with)
* forced upgrade path. If you buy music from iTMS and want to buy a new player -- you must buy an iPod to play that music, or hop through a burn-to-audio-cd-re-encode-to-MP3 workflow.
iPod sets the price points, and because of volume corners the markets on the parts need (see articles on Apple's flash memory grabs). Other players can't get the parts in cheap enough to compete. And if any serious contender comes along, Apple has a 50% profit margin to play with.
I've owned 3 ipods. All too expensive. I buy no music from iTunes. Currently I rip CDs at 320Kbps, but most of my music is bought from EMusic.com which provides 196Kpbs MP3s.