Spotify is Coming to the iPhone

SpotiphoneThe industry rumour mills have been red hot over the last few weeks, covering the will-they-won’t-they submission of the Spotify iPhone Application to the iTunes Music Store. Well, the news just out is that is has been approved, and it’s fair to say a lot of people are very pleased indeed.

Concerns were raised over whether Apple would approve the new application, given it has the potential to cannibalise the iTunes Store music purchase model (as we wrote about sometime last year) and given the ongoing (and somewhat mysterious) spat over the Google Voice application. However, it looks like those fears are unfounded as approval has been granted.

What’s interesting about the decision, and what we think people will realise, is that the potential loss in iTunes revenue is only a single piece of the puzzle – there are in fact a number of economic considerations for Apple:

  1. The Spotify App will influence consumers’ decision to purchase an iPhone: more iPhones sold = more product revenue and more subscription share from the networks.
  2. More iPhone owners may well lead to more Apple owners in general.
  3. Apple may use their relationships with Record Labels to build on the service offered by Spotify. In fact, there are already a number of iTunes tracks on offer through the service.

The way we see it, this is just another super-savvy decision on the part of Apple – all credit to them.