Napster's fading... fast

``I think it's a very competitive market with very ugly economics and there's just no money in the download business,'' said Steven B. Frankel, managing director of Adams, Harkness and Hill, a Boston investment bank.
Click to expand...

Except for Apple :)
 
Not even for Apple -- the iTunes Music Store doesn't generate any profit for Apple, it just bolsters the sales of iPods, where the true profits come from.
 
ElDiabloConCaca said:
Not even for Apple -- the iTunes Music Store doesn't generate any profit for Apple, it just bolsters the sales of iPods, where the true profits come from.
Click to expand...

For Apple, iTunes Music Store is just a trojan horse for the iPod.

I think they're underplaying it the same way they did with the Xserve; don't brag or boast about it, but make sure everyone sees you gloating when it succeeds.

Hey, everyone! grab some shades, Steve Jobs is gonna bend over [get it!]
 
The trojan horse model for the iPod is the current presentation of iTunes, but make no mistake about it, iTunes will generate money for Apple in the future.

At some point, iPod saturation will hit critical mass and the sales will tail off dramatically. As it is, a 40 GB iPod is huge, 99% of the music-listening buying public just don't need that much space, nor ever will. This is why the iPod minis are successful. Enough space, looks cool, slightly less money. Good enuff.

Whenever that critical mass hits, iTunes will presumably have a boatload more songs in the library, let's call it a million songs growing every day. What's Apple getting, 30% per tune sold? And how many tunes DL'd these days? I-don't-know-how-many-millions? iTunes will definitely make money for Apple soon enough. The R&D is already done. The hardware update requirements will be a pittance relatively speaking. Plus, the marketing requirements will lessen because iTunes will remain the best known brand for music downloads.
 
Apples operating costs for iTunes Music Store have to be pretty low. They shelled out all the money on the infrastructure years ago when they set up the Quicktime Movie Trailers site.

I read somewhere last week [cannot be bothered to find the article, so don't ask for a source] that Apple won't make the same mistake they did when not licensing the mac way back when.

What's this got to do with the iPod? Once [and like mindbend said] the iPod hits it's peak curve -- or maybe sooner -- they're going to need to open up the format.

The article made reference to specific time-frame; 2-3 years from now.

Apple could well open the iPod out for licensing, and by this time, iTunes Music Store could well be coining it in.

I think Apple have made enough mistakes in the past to have learned enough for the future...
 
You're right, but the question is whether Steve Jobs is the man who _will_ open the licensing. He was never _really_ a fan of openness. The original Mac's case needed special tools to be opened. (We had to buy those from Apple when I was working at a computer store in the early nineties...)

Here's to hope that things have changed...
 
I see the iPod becoming that iPhone that was so hyped a year or so ago. Why carry multiple things, when you can carry 1? Look at the camera phone. MP3 phones are out, but they can't hold anything, and they are crappy, Apple needs to jump on that.
 
Urbansory said:
I see the iPod becoming that iPhone that was so hyped a year or so ago. Why carry multiple things, when you can carry 1? Look at the camera phone. MP3 phones are out, but they can't hold anything, and they are crappy, Apple needs to jump on that.
Click to expand...

Apple have gone on record as saying that they don't want to get into the mobile / cell phone market because they don't feel that they can add value.

I say they can.

For instance, imagine an Apple phone linking into iSync, iCal & Address Book. Imagine this phone working via Bluetooth and / or AirPort.

All of this connectivity building towards yet another revenue stream for Apple via .Mac accounts to enable all of this interactivity and mobility.

Quite quickly, we build a picture of a phone that can take a hold of your mobile data management needs and help keep you on the move...
 
yep, exactly. I'm saying it will happen, likely with a mobile partner. A Apple signature phone. Now that, I would buy.
 
You have to think of the reasons _why_ Apple haven't entered the market already.

Even though mobile phones have been around for a while, it's still an immature market. The biggest problem with the mobile industry is the lack of proper social engineering.

Apple could well bring some kind of sense and ergonomic to this space with a simplification of the structure of content .. or even content itself!

Let's face it, the WAP-enabled mobile phone lacks content. The biggest mistake made in the UK with the 3G licensing feeding-frenzy was the naivety of players who assumed that by simply squeezing current web sites to fit on an inch high screen would do the trick .. err, no!

I'd hate to break one of the rules of the forum, but this is a situation close to my heart. I'm currently developing a web-based application that extends the reach of mobile devices.

Apple could bring some real coherence and order .. watch this space...
 
Well, one thing I _wish_ smartphones would do well: RSS news feeds. If I could use WAP over GPRS to access my favourite news-feeds, I'd be as happy as a clown. I could even write my own WAP-page for _writing_ articles on macnews.net.tc. :) Wow. I'd be out of the house more. ;-)
 
fryke said:
You're right, but the question is whether Steve Jobs is the man who _will_ open the licensing. He was never _really_ a fan of openness. The original Mac's case needed special tools to be opened. (We had to buy those from Apple when I was working at a computer store in the early nineties...)

Here's to hope that things have changed...
Click to expand...

Don't forget that after Steve did forgo hardware control when he was running NeXT. After all, NeXTSTEP (later OpenStep) was created to run on multiple platforms.

I think Steve has learned, and will probably open up and license Apple technologies when it makes sense. The old Apple's "not invented here" syndrome seems to be fading (OS X embraces many open software/standards).

-B
 
You must log in or register to reply here.
Back
Top