“Piper Jaffray said early Friday it thinks the iTunes online music store could emerge as a driver for Apple’s (AAPL) shares in fiscal 2005 and 2006,” Michael Baron reports for CBS MarketWatch.
“We believe that the Street is underestimating the impact of iTunes on two levels: hype factor and financials,” the firm told clients. “Based on Apple itself downplaying the potential growth and profitability of the iTunes Music Store, we believe expectations related to this segment are minimal.”
Baron reports, “Piper theorized that the hype factor around iTunes will grow in tandem with the installed base of iPods, Apple’s digital music player. ‘As the iPod installed base grows and the overall demand for digitally distributed content increases, we expect the Street to begin to view iTunes as more than just the cog in a wheel that drives hardware sales,’ it said.”
Full article here.
This is what I’ve been saying all along. Honestly, if I hear one more argument along the lines of “but iTunes doesn’t make any money so why should Apple care what happens to it,” I’m gonna scream.
“but iTunes doesn’t make any mon…”, k, kidding.
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I want to see what will be the established base 3 months from today now that HP is selling the iPod and bundles iTunes as well as hosting how-tos and support for its users.
I know people don’t wanna hear it anymore, but this can’t happen if REAL offers their iPod support and any other music stores who take similar actions. Their closed system allows Apple to create the self-sustained market of music by ITSELF without the iPods driving force. Once the iPod becomes the new standard (similar to a discman, and it will reach that stage), it will have a clientel across newly opened countries to the online store on massive levels. Just try to envision 5 to 10 years from now. It gives you goosebumps just thinking about it.
Ace…I don’t think REAL will affect Apple. If you buy an iPod (Apple or HP) you get the iTunes goodies. Only anarchists will not use iTunes/iTunesMS. There may be the occasional price discount to draw a few away temporarily away but with all the peripherals like AirTunes, etc. they will soon return to the wonderful, plug-n-play iTunes fold.
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Now Microsoft is a different story, but event they will have a hard time.
very funny, seahawk.