“Analysts who follow Apple Computer Inc. say it is no surprise the company has already sold 1 million videos through its new iTunes Music Store service,” Rex Crum reports for MarketWatch. “‘No one had any doubt they would reach 1 million (downloads),’ said Shaw Wu, of American Technology Research. ‘But I think the speed of adoption is ahead of expectations. It’s a good sign for Apple, and its strategy.'”
“Investors appeared to have taken Apple’s plans to heart, bidding up the company’s shares by $3.01, or more than 5%, to $57.50 in Monday trading. The stock earlier reached a 52-week high of $57.71,” Crum reports. “Gene Munster, of Piper Jaffray, said it’s important to consider just what Apple is offering, how consumers have responded, and how video content providers need to look at Apple as a consumer-electronic force beyond the iPod and its flagship iMac personal computer. ‘What Apple’s doing is laying the groundwork for the next frontier in home entertainment,’ said Gene Munster, of Piper Jaffray.”
Crum reports, “Apple Chief Executive Steve Jobs wasted little time in letting content providers know his company’s strategy, and calling up them to realize the strength of Apple’s role in the video market. In a statement announcing the 1 million downloads, Jobs said Apple’s next challenge ‘is to broaden our content offerings so that customers can enjoy watching more videos on their computers and new iPods.’ Munster said, ‘What Jobs has done, is put out an open invitation to content providers. Apple’s showing that the demand is out there, and they (content providers) need to see that their customers are coming to Apple.'”
Full article here.
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