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