“Apple continues to prosper on the strength of its portable digital music player. Over the holiday quarter the company sold nearly as many iPods(733,000) as it did Macs (829,000). That helped the company reverse a year-ago loss and post a better-than-expected fiscal first-quarter profit of $0.17 a share,” Rick Aristotle Munarriz writes for The Motley Fool.
“Granted, iPods aren’t big-ticket items. In sum, they only accounted for 13% of the $2 billion in revenue that Apple generated during the quarter. However, after decades of watching its share of the personal computing market decline, it’s a merit badge for the company that now owns an entirely different space — digital music,” Munarriz writes. “Apple claims that it is behind 70% of the legal downloading market. It has earned it. In less than a year, it appears to be single-handedly saving the prerecorded music industry that wasted too many years in fragmented alliances while failing to understand the mindset of the song file swapper.”
Munarriz writes, “This may all ultimately grow the company’s computer business again. As traffic continues to grow at Apple’s site and with more consumers loading up on Apple products, it will give the company a huge audience to market to. No, Dell has nothing to fear from Apple in terms of losing its market leadership in the near future. However, the industry should take note of how Apple now has its foot in many non-Apple doors.