10/19/2004 06:43:00 AM 
With the shrinking size and price of hard drives, wireless phones could soon be adding a new feature, music. Already, its possible to play music using a memory card, recording artist, Robbie Williams is the first to release his album on this format. It will make sense for consumers to consolidate appliances, if there is no compromise in quality. The important developments in this area include: AT&T opening a wireless music store, Apple licensing iTunes to Motorola for inclusion in a phone to be launched in 2005 and Samsung's SPH-V5400, the first phone launched with a built in hard drive.
http://insight.zdnet.co.uk/0,39020415,39170584,00.htm
http://www.geekzone.co.nz/content.asp?contentid=3553
An interesting piece in the IHT looks at the Japanese experience with wireless services beyond talk. Quality gaming, traffic reports, news streams, IM and text are all used regularly. It's these services that are helping the cellphone to penetrate deep into Japanese life and culture. Its long been argued that the US is a very different animal, with analysts highlighting the US's car commutes and high levels of PC penetration, as key differences.
http://www.iht.com/articles/2004/10/15/business/ptmobile16.html
However, there is considerable potential if the services can be segmented, packaged, made affordable and marketed well. It's already happening with ringtones and text messaging. It will be interesting to see what Cingular does with i-mode after the AT&T acquisition; they have already made noises about an aggressive re-launch. In addition, handset manufacturers look poised to challenge the MP3 player makers, like Apple, especially if handsets are being given away.
What's certainly clear is being able to market to young adults is going to be critical to the future success of the second stage of the wireless evolution.
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