Apple’s iTunes Music Store in position to capture major part of US music download market

“Apple’s iTunes Music Store could capture 20 per cent of the US paid-music download market, claims Needham’s analyst Charles Wolf in a report this week,” writes Jonny Evans for Macworld UK. “Wolf believes Apple could generate annual revenues of $600 million through its store, and that this figure could increase. He describes the Store as ‘providing an arguably superior customer experience.'”

Evans writes, “His figures represent Apple’s potential yield from porting its service to Windows. The store’s sales have settled to about 500,000 per week. ‘This demand appears to be significantly higher than Apple or the labels anticipated,’ he says. Wolf advises: ‘At a profit of less than ten cents per song, the Music Store does not represent a major income opportunity for Apple. Pull-through sales of the iPod portable music player is likely to represent a far larger one, in our opinion.'”

“His report

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