Monday, April 11, 2005

With its white-hot iPod device, Apple Computer Inc. sits atop the digital music world -- seemingly without a serious competitive threat in sight.

That lead may not last much longer. Apple will soon confront not just a new challenger but an entire $100 billion industry. Cellphone makers and wireless carriers are piling into mobile music, with an array of new services and phones that could radically change a game that until now has been defined largely by Apple.

Last month, SonyEricsson, the cellphone joint venture of Sony Corp. of Japan and Sweden's Telefon AB L.M. Ericsson, unveiled a Walkman phone, seeking to leverage the Sony Walkman brand in the music phone sector. The sleek white model is expected to be available in Asia and Europe in the second half of this year, and subsequently in the U.S., according to the company. Motorola Inc., the world's No. 2 cellphone maker, last month announced three new music phones, all capable of downloading songs from a user's personal computer, like the iPod does.

While their offerings may not be quite as trendy of those from Apple, at least not at first, they have one big advantage: People carry cellphones more than any other device. A recent survey by JupiterResearch showed that 76% of those asked said they carry a cellphone regularly, while just 7% said the same about a music player.