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Jobs: Apple is hoping for 5% of all music sales

updated 07:55 am EDT, Mon June 14, 2004

Jobs transcript

In from last week's onstage conversation at the second annual D: All Things Digital conference, Steve Jobs said he hopes Apple will garner about 5% marketshare the entire music industry--not just the online music industry of which it owns 70% marketshare--in the next 24 months, after achieving a 2% marketshare in the first year iTunes. Jobs also said that iTunes prices are not expected to rise: "And it turns out the music companies make more money when we sell a song for 99 cents than they do when they sell it on a CD. The prices aren't going up on iTunes, I can tell you that.." [paid subscription required to WSJ]

Jobs also said the iPod is Apple's competitor to the $400 computer, but emphasized the company does not see a future for video in handheld devices: "Yeah, we actually approached it that way. We said we're going to invest in the iPod rather than a PDA and we also said it looks a lot like a $400 computer. And for us the volume is pretty good, so yes. But we want to make them cheaper still. I mean, we're not happy with iPods costing $300 and $400 and we want to keep driving the prices down on them so we're working very hard on that."

by MacNN Staff





  1. csimmons

    Joined: Dec 1969


    What would IMO be cool...

    ...if the iPod went in this direction:

    That would be interesting, since Stevelikes to think of the iPod as a competitor to the $400 PC.

  1. Jablabla

    Joined: Dec 1969



    Just being devils advocate here..

    Why not build ipod like functionality into a cell phone? Analogous to having digital cameras in cell phones. Ironically, the digital camera makers are scared because cell phone manufacturers are putting 3 mega pixel cameras into new cell phones.

    ipod phone could be like tivo and do sleepy downloads at night. Just get rid of the pc all together. That would be a bigger market.

  1. z10n

    Joined: Dec 1969


    Is he serious? OMG LOL!

    Steve is smoking some serious crack if he has any notion that the iPod compares with a $400 PC in terms of functionality. Does Steve even bother looking at the products he create, or does he just constantly s*** RDF out of his a**?

    A) The iPod will ALWAYS be a worthless PDA if it doesn't have edit capablity. Adding edit capablity will require a major hardware redesign, which is probably not worth it.
    B) There's no point to apple making a PDA with a 40 GB HD. Nobody needs that kind of space unless it comes with a full Desktop quality operating system.
    C) There's no point to apple competing with Palm. Apple doesn't have the resources to make a PDA that will get enough developers on board to create enough decent applications to make the unit worthwhile, especially compared with Palm's zillions of developers.

    In short, I would prefer an apple-branded Palm PDA, rather then something leveraged off the iPod.

  1. pdot

    Joined: Dec 1969


    Re: Is he serious?

    "looks a lot like a $400 computer"

    I think you took this farther than Jobs intended. He's talking about the additional features that were recently added that makes the iPod more like PDA/small-computer. He never touted the iPod as a PDA replacement that's why they "approached it that way." The word "lot" might be a bit strong, but people marketing a product exaggerate almost all the time.

  1. nagromme

    Joined: Dec 1969


    This is a MISQUOTE

    To clarify... Steve NEVER STATED A GOAL OF 5% FOR ITUNES.

    He merely said it's "not inconceivable" that the ENTIRE download INDUSTRY MIGHT achieve 5% in two years.

    I'm not sure where this misquote started, but here's the real quote from

    But now watch the press in two years slam Apple for not making this supposed "iTunes goal."


  1. themotor

    Joined: Dec 1969


    Future for iPod video

    That's too bad re: Apple's view on handheld video. It seems feasible that with the new MPEG codecs Apple is working on, one would be able to download music videos, movies, etc. from the iTunes Store to an iPod with an OLED screen. How cool would that be?

    Oh well...!

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