ITunes Sales: Who gives?

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ITunes Sales: Who gives?

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ITunes Sales: Who gives?

Posted over 3 years ago

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Blood, Sweat & Tears
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Spinning Wheel

Last week, Apple news sites were full of Doomsday Prophecies because some analysts reported that the sales from the iTunes store were declining.Apple Stock took a dive, and commentators went wild.The Register, or "El Reg" as friends call it, has an excellent piece of the stupidity of this:"It's a testament to the ignorance of Wall Street's gamblers, and the collective herd mentality of the business press, that Forrester's research should cause such a panic. Apple's dazzling growth in recent years has been earned from selling portable music hardware - not digital downloads. The company readily admits the iTunes Store contributes next to nothing to the bottom line."http://www.theregister.co.uk/2006/12/13/itunes_sales_forrester_replies/

Comments (2)

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dermahrk says Actually, I think it is sales of the iPod that declined, not iTunes. But as I recall, they were comparing the Christmas quarter of 2005 to summer and fall quarters of 2006. Seems obvious to me that the Christmas season would show the highest sales figures so I'm unsure what the fuss is about.

Permalink posted 12/19/2006
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ivylander says I'm not even sure Apple cares how much money iTunes even makes for them. From a marketing viewpoint, I'd be willing to bet that what they like about iTunes is not its revenue but its "stickiness," that quality that makes it hard to extricate yourself from a commercial relationship. If you have an iPod, you pretty much have to get your music off iTunes. As long as you've made an investment in storing your music on iTunes, whether you've downloaded from the iTunes store or copied a CD (or even, heaven forfend, downloaded illegally), you are much less likely to wnt to go through the hassle of changing music delivery systems. It's like changing your bank, a pain in the neck. So you keep on buying iPods. Simple, really.

Permalink posted 12/19/2006