[opendtv] Re: News: Apple Sells 70 Million Songs in First Year ofiTunes ...
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Sun, 2 May 2004 12:57:17 -0400
At 12:23 AM -0700 5/1/04, John Willkie wrote:
>I think they have it backwards: the profit in printers are in the
>consumables. If your argument is correct, Apple is going to make upfront
>profits on the ipods, and be sapped of those profits on the downloads. A
>withering idea.
>
>John Willkie
It's your credibility that is withering. This is anything but the old
razor blade trick.
Apple makes profits on the sales of iPods.
Apple makes profits on the sale of music via iTunes (and the
profitability improves as more people use the service since the
overhead is relatively fixed).
Apple sells more computers because people are exposed to the iLife
application suite via iTunes - this includes people who are buying
iPods and accessing the iTunes music service via their PCs, only to
learn about all of the features they DON'T have that Mac users enjoy.
Apple has received tremendous PR benefits from both the iPod and
iTunes music service. How much is the ongoing publicity in a broad
spectrum of mass media outlets worth?
Regards
Craig
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