“What’s that? Amazon opened a music store? Oh, OK. (Resumes snoring),” Time Beyers writes for The Motley Fool.
“Nine of the 10 best-selling MP3 players at Amazon are iPods. That’s why you’re not seeing Jeff Bezos chatting up alternatives from SanDisk or nearby Microsoft,” Beyers writes.
“Chances are those tracks will be downloaded into one of the 110 million or so iPods out there today,” Beyers writes. “Bezos knows that; he’s no moron. And he knows that Apple doesn’t need him for distribution. Would CEO Steve Jobs pull the iPod from Amazon’s digital shelves? Probably not, but it’s enough to know that he could.”
“More than 3 billion songs have been sold via the iTunes store. Assuming Apple retains no more than $0.05 to $0.10 per song, that’s roughly $150 million to $300 million in revenue over four-and-a-half years of sales,” Beyers writes. “By contrast, the iEmpire [Apple] collected more than $22.6 billion in revenue over the trailing 12 months alone.”
Beyers writes, “So let’s take Amazon’s $0.89-a-song-strategery for what it is: great for consumers. And anything but bad for Apple.”
More in the full article, including four of Apple’s primary advantages when it comes to the iPod, here.