“Apple, Inc. took out a full page advertisement in today’s Wall Street Journal simply stating that 100 million iPod’s had been sold since the device’s inception,” Georges Yared writes for BloggingStocks. “The simple tagline reads ‘Thanks to music lovers everywhere.'”
“Apple is a phenomenon because of several profitable and still growing moving parts. The fact that Apple has sold its one hundred millionth iPod, and commands a dominating marketshare of 70% is itself phenomenal, but the market is still vastly under-penetrated. Many consumers are already on their 2nd and 3rd versions of the iPod. The number of individuals that have purchased the device is about 40 million ( Apple has been hesitant about giving out that specific number). When one considers the size and the scope of the market–world-wide– the penetration level of potential buyers is far, far away from saturation,” Yared writes.
“What is beautiful about the financial model for Apple is the recurring revenue theme. As consumers buy the iPod, a huge percentage of them then open an account with the iTunes store and the Apple cash register just keeps on ringing,” Yared writes.
Yared writes, “When the iPhone rolls out in June, Apple’s advantage is the massively happy installed base of customers. The missionary sales cycle will be by-passed on this product. The early adopters alone will drive huge incremental revenue… The new and improved Mac computer is another budding phenomenon within Apple. That, with improved CPU units, software enhancements and other product improvements gives Apple a multi-pronged approach to their revenue model… The phenomenon that has become Apple will continue for another 3-5 years.”
Full article here.
3-5 years? Bah
Tipping point is ahead, that alone will give Apple 10+ years!
Unrelated link.
http://news.yahoo.com/s/ap/20070409/ap_en_ot/obit_lewitt
Cubert is sad today. Sol LeWitt has died. Cubes were his passion.
M.A.D.
3-5 years doesn’t mean that it’s over after 5. It only means that the analyst can see new products and revenue streams evolving over that time period. You can be sure that Apple will be developing new strategies, and you can also be sure that analysts won’t be aware of them until Apple has a head start on their competition, just as what happened with the iPod.
Microsoft has been Zuned.
I think every iPod should come with a $5 or $10 gift card for iTunes. That would prompt lots more people to give the service a try that may be unsure of the quality or selection.
loki capret:
I agree. I’ve bought iTunes gift cards for people just to introduce them to the store, and they’ve gone back since.
> I think every iPod should come with a $5 or $10 gift card for iTunes.
Seems unnecessary. Every iPod owner installs iTunes. Using the iTunes Store is a few clicks away. It’s not like customer has to have any more encouragement to buy songs, or any more advantage over the competition. If anything, there should be a $10 coupon with the video-capable iPod to use toward buying a movie or TV shows. That’s where Apple needs to encourage more sales.
Yup, Tipping Point ®.
A $5 gift card would be an excellent idea!
“A $5 gift card would be an excellent idea!”
Umm, $4.95, yeah? We don’t want extra points hanging around….
5 years of exponential growth and you are complaining?
Owning a significant and growing portion of the music player, cell phone, set top box and personal computer market and you are complaining.
Buy APPL and STFU.
It was a beautiful ad.
Then I saw some article about some Sandisk, Yahoo and some other company’s iPod killer that allows one to purchase tracks wireless from this MP3 player they are introducing on Friday.
“A $5 gift card would be an excellent idea!”
A $5 gift card is about all I need. Bring it on over.
Cuz hey guys . . . I’m a slut!
Chrissy ..
You owe me another keyboard
If you are looking for a real deal, Costco Canada is selling $50.00 iTunes cards for $44.95
You owe me another keyboard
Is that milk on your keyboard, or were you just happy to see her?
Then I saw some article about some Sandisk, Yahoo and some other company’s iPod killer that allows one to purchase tracks wireless from this MP3 player they are introducing on Friday.
When will the industry get it that committees can’t do good personal electronics?
Never mind that Apple’s already beat them to the wireless punch. Remember iPhone?
ChrissyOne
I love you more, posting by posting
by the way, how’s hubby’s worm doing?
@not fooled.
The industry is never going to get it. I am loving this Apple renaissance.
ChrissyOne:
“”A $5 gift card would be an excellent idea!”
A $5 gift card is about all I need. Bring it on over.
Cuz hey guys . . . I’m a slut!”
So…. what does a $50 card get me?
“That, with improved CPU units”
What the f**k? Intel processors are not an improvement over powerpc processors! I’ts acctually the opposite.
MDN Magic Word ‘bill’ as in bill gates is done for.
dont follow the trail, go to the apple store
Well, after the previous little episode about the Rush bloke, I hope that everyone can sit down, have jolly nice cup of tea and have HAPPY THOUGHTS.
Or maybe everyone should take a Bex and have a lie down.
iPhone is already factored in the stock price.
If iPhone stumbles down goes Apple stock. For Apple stock to go up lots further there has to be monster iPhone sales and computer sales.
Some of us avoided that thread because rehashing the predictable loses its luster after the 10,000th time.