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BusinessWeek: A Bitter Apple Replay?

updated 01:10 pm EDT, Thu October 14, 2004

A Bitter Apple Replay?


Alex Salkever of BusinessWeek discusses , saying that Microsoft, other cell phone carriers, and thinning margins could challenge the company's longer term future in the music industry: "If Apple licenses FairPlay, it could sacrifice some sales and profits from its iPod line in the near term. But over the long haul, sowing the seeds of mass adoption of its DRM standard and its iTunes music software will help ensure that Apple's own future hardware offerings aren't marginalized. Jobs should sacrifice some of control and integration to make sure Apple has a seat at the table -- and a say in cutting up the larger, more lucrative digital-content pie."


by MacNN Staff

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  1. ethical_paul

    Fresh-Faced Recruit

    Joined: Mar 2002

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    10/14, 02:26pm | report spam | Reply |

    same old myth

    Blah and Blah and Blah...

    The first sign of a computing journalist hack is when he claims that Apple was marginalized because of a "closed" system.

    It's nonsense. Business didn't buy into the idea of the PC until safe old IBM came out with one. IBM was stupid enough and Gates was lucky enough that IBM licensed the OS instead of rolling their own (because they grossly underestimated the value of PCs in the market).

    It was chickenshit businesses waiting for IBM and then buying into Big Blue that marginalized Apple.

  1. MacnTX

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    10/14, 02:31pm | report spam | Reply |

    Wrong Alex!!!

    Read This. Enough said...

    http://daringfireball.net/2004/08/2004_wont_be_like_1984

  1. Nitride

    Fresh-Faced Recruit

    Joined: Sep 2001

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    10/14, 02:41pm | report spam | Reply |

    Hmm

    Apple is driving iPod sales with the iTunes music store. The lack of compatible music-download stores doesn't seem to be hurting the iPod one little bit.

    The iPod and iTunes and the iTunes music store already works on Windows - essentially shortcutting the no-license argument. Apple is *already* on Windows - presumably without MS' consent or any kind of cross-licensing arrangements.

    The fact that Apple is *already* on Windows, without help from licensing anything to anyone, fully negates this argument.

    This is the same mentality from Liberals who want more/bigger government; "But, but you can't have prosperity or more/better jobs *without* the government as the one doing it!!!!!! It's not faiiiiiiiiiiir!"

  1. aristotles

    Grizzled Veteran

    Joined: Jul 2004

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    10/14, 02:51pm | report spam | Reply |

    Yeah Apple is failing.

    They had over 80 percent market share of HD players last year and 92 percent this year and 65 percent of the total player market and over 70% of online music sales. Yeah they are sure marginalized alright. Did this guy misspell MSFT?

  1. salco

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    10/14, 02:53pm | report spam | Reply |

    He doesn't get it

    What Alex Salkever never mentions (because it would soften his point) is the fact, that the whole market is hardware-driven not software-driven. People don't decide on a mp3-player because it's compatible with a download store. Instead they will buy the mp3-player they like and when they got one eventually look which store works with the hardware they own. So as long as the iPod dominates the market, there is no need for apple to license FairPlay. Only when the competitors will gain market share, Apple needs to consider it.

  1. hayesk

    Professional Poster

    Joined: Sep 1999

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    10/14, 02:56pm | report spam | Reply |

    Re: He doesn't get

    Bingo. Salco hit the nail on the head right there.

  1. MichaelNH

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    Joined: Jul 2002

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    10/14, 03:28pm | report spam | Reply |

    I want to write...

    Looks like anyone can write c*** and get it posted on the internet in some form or fashion. It's amazing in the subway station how many people are sporting iPods.. I even busted a few people using different color headphones but when they reached down to make a change of song, I saw what they were trying to hide. :) I don't blame some people to want to hide the fact they own an iPod. I wouldn't want someone doing a run and grab of the iPod off my hip/under my jacket! My gf wanted the iPod so badly.. now she switched over to an iBook... so I guess the iPod has the halo effect.

  1. SomeToast

    Senior User

    Joined: Jan 1999

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    10/14, 04:32pm | report spam | Reply |

    re: I want to write...

    I even busted a few people using different color headphones but when they reached down to make a change of song, I saw what they were trying to hide. :) I don't blame some people to want to hide the fact they own an iPod.

    And then there's those of us who never take the iPod earbuds out of the package because we have other headphones/buds we already prefer using.

  1. bigpoppa206

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    10/14, 04:55pm | report spam | Reply |

    Re: Wrong Alex!!!

    Great article MacnTX! Thanks!

  1. Cf

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    10/14, 06:20pm | report spam | Reply |

    on DRM

    Well, Apple could open it up, but I'd expect Microsoft to fight like h*** to push WMA as far as they can regardless of what Apple does (or anyone else for that matter). How many companies have actually jumped at adopting Apple's DRM? I can only think of Real off the top of my head. There's also not much of a "table" to sit at right now either. It's all competition, not much cooperation.

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