Is the iPod the Razor or the Blade?

There is a new article up that asks the very pertinent question of whether Apple's new business model with the iPod makes it the equivilent to "the razor" or "the blade" that business school types talk about when analyzing the ideal marketing strategy.

More than a century ago, King Gillette invented both the safety razor and a new way of marketing consumer goods. Before Gillette, men shaved with straight razors, which required skill to both make and use, and lasted almost forever. Gillette's safety razor was mass-produced and required little skill to make OR use, but couldn't be re-sharpened, so the removable blades had to be discarded when they became dull. His marketing breakthrough was selling the razor handles at little or no profit while making huge profits on the consumable -- the blades. This same technique is used today to promote mobile phones and inkjet printers. And it is supposedly behind Apple's success with the iPod music player.

The article goes onto suggest that perhaps Apple has found an even better business model, where they are able to sell both the iPod AND iTunes music at a profit! It certainly matches my experience with the iPod and the iTunes Music Store.



But fear not. If you are worried about Apple's increasing dominance in the MP3 music space, there is also a new article up about JHymn, an app that lets you strip off Apple's Digital Rights Management and bring the music along anywhere, on any machine.