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CNN/Money: Apple's iTunes store 'doesn't matter'

updated 08:35 pm EDT, Thu April 8, 2004

iTunes vs. Macs

CNN/Money reports that Apple's : "Apple may be the undisputed heavyweight champ of online music. But its market share in the computer business, which still accounts for nearly two-thirds of the company's total sales, remains Hobbit-like small. Apple is clearly an innovative and cool company but in the grand scheme of things, its results are only significant for Mac junkies and/or Apple shareholders. Investors looking for clues about what's happening in the broader tech world would be better off digging through the reports from Intel and IBM."

 
Previous Comments

Huh

04/08, 08:52pm reply

I guess they missed the part where Apple makes the #1-selling MP3 player, which is one of the few consumer tech segments actually experiencing a lot of demand. Computer sales are still relatively dismal, no matter who you ask.

SpiffyGuyC

Junior Member

Joined: Mar 2000

0

He does not know history

04/08, 09:03pm reply

He mentions Apple is innovative yet says look at Intel for what is happening in the tech world. Does he not know that almost all innovations come from Apple and that the rest of the world follows suit. Witness the first mouse, first 3.5" floppy, first GUI, first color monitor, first to get rid of legacy ports. The G5 is setting firsts, but wait till the G6 comes out, interestingly from chipmaker IBM that he quotes as being worth watching.

ronboor

Fresh-Faced Recruit

Joined: Apr 2004

0

Is there any way...

04/08, 09:09pm reply

...to email the a****** who wrote this piece of s***? Or does CNN hide its "reporters" behind a wall of anonymity?

And I mean writing directly to the person who wrote it. Not some "comments" email address that will go right to the bit bucket.

Nostromo

Fresh-Faced Recruit

Joined: Oct 2001

0

well

04/08, 09:19pm reply

You're better off just ignoring it and not even clicking thru to the site.

Remember, they crave attention and the more hits they get the more 'successful' they are.

Don't feed it.

porieux

Baninated

Joined: Mar 2001

0

Dishonesty in reporting

04/08, 09:23pm reply

There are far more than 8 public companies reporting earnings in the coming week. Apple is of great importantance to the author to generate traffic to his sophomoric article, yet he's unwilling to acknowledge Apple's influence on the entire tech industry that's disproportionately greater than its current market share.

erickwong

Fresh-Faced Recruit

Joined: Jan 2004

0

Err, Slow New's Day

04/08, 09:37pm reply

Seriously, WTF, there is nothing else to write about? And besides, Apple does make money almost every quarter. blah.

slider

Mac Elite

Joined: Oct 1999

0

You're right and aren't

04/08, 09:40pm reply

Apple definitely leads the entire desktop industry in inovation. We could be here all night listing the things they have done first. They are even quicker to bring other companies technologies to market than those companies themselves (USB for example).

What he is referring to is the economic outlook of the tech sector and he is right, Apple isn't an effective gague of the sector. The rules that govern Apple's growth are completely different. Usually "the street" lumps Apple in with everyone else. When the PC industry is bad then Apple must be two. This guy is pointing out that this isn't the case. The general buying cycles are different. Apple has spikes in the quarters after MacWorld and WWDC (since WWDC seems to be replacing the summer MacWorld for major announcements).

Apple should be judged differently because it's a completely different segment of the computer industry all by itself. We've been saying this for years. The reverse is also true. Apple shouldn't be used as a barometer for the rest of the tech sector. They just aren't representitive (yet;-) of the industry as a whole.

As much as my stomach churns when I think of DILL, they represent a large cross section of the industry. They make everything from high end servers to cheap c*** that you use to as door stops after a few months. They are a good barometer of the industry as a whole.

To put it another way, you wouldn't judge the strength of the supermarket industry based on business for one health food chain, you'd look at Walmart to get the big picture.

Don't flame the guy, he's right. He's saying what we've been saying the years, just from the opposite perspective.

beeble

Fresh-Faced Recruit

Joined: Mar 2004

0

Again with market share?

04/08, 10:36pm reply

Just see my comments in yesterday's "market share is everything" article...

but ignore all the typos :)

Zaren

Fresh-Faced Recruit

Joined: Aug 2001

0

I hate these stupid...

04/08, 11:12pm reply

...double standards:

if apple_price > wintel_price then
most_important_feature = price
else
most_important_feature = something_else
end if

if apple_product_marketshare > wintel_product_marketshare then
marketshare_importance = 0
else
marketshare_importance = 100
end if

phillymjs

Fresh-Faced Recruit

Joined: Jun 2000

0

Rediculous!

04/08, 11:50pm reply

They seem to claim that macs are only for "Mac Users" as if that means people who aren't in to high technology or something.

They don't bother to look at the fact that Macintosh is the leader in almost every media production environment, from graphic design to digital audio and video at the high-end professional level.

Dumb.

arajara

Fresh-Faced Recruit

Joined: Oct 2003

0

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