iTunes, Apple ultimately in trouble?

Discussion in 'Music' started by Michael St. Clair, Dec 29, 2003.

  1. Michael St. Clair

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    Fast Company thinks they might be.

    http://www.fastcompany.com/magazine/78/jobs.html

    Interesting quotes:


    Personally, I'm still suspect of the whole 99-cent DRM-limited lossy-encoded download model in general (not just Apple's flavor). I think for album buyers it offers lousy value compared to Redbook CD. It is interesting to see that some competitors are offering certain 79-cent downloads, 88-cent downloads, and also unlimited on-demand streaming for flat rate. I may still have some issues but at least some providers are working on adding more value, and I expect this to increase substantially.

    No, I'm not anti-Apple. And I'm not predicting that Apple will lose their grip on this market...I just acknowledge the possibility. And I'm glad we have pioneers in the tech field, and Apple is definitely one of them. Send flames elsewhere.
     
  2. gregstaten

    gregstaten Supporting Actor

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    My biggest problem with iTunes is the sound quality of the purchased tracks. They sound, to my ear, better than 128 kbps MP3s, but only about as good as 160 kbps MP3s. If they offered a higher quality version, I'd be more likely to use their service.

    -greg
     
  3. Peter Kline

    Peter Kline Cinematographer

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    The "Apple is doomed" beat goes on. This has been happening for nearly 20 years and is a running joke with Apple users. Apple had one of it's best years even in a down economy. Next December there will be another similar article.
     
  4. Garrett Lundy

    Garrett Lundy Producer

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    I dunno, Apple Computer might have to eventually fall back on making computer[​IMG] (At least they are the only supplier of the un-PC).
     
  5. Michael St. Clair

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    I certainly wouldn't make a prediction that Apple is doomed.

    However, many people are claiming that Apple owns the lossy download market and that the battle is over.

    There is certainly a potential scenario where Apple fails to sustain their grip on the lossy download market but does not become 'doomed'.

    Not everything has to be so polarized.
     
  6. Michael St. Clair

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    Um, heard of Linux machines from various vendors? [​IMG]
     
  7. Lee Scoggins

    Lee Scoggins Producer

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    It's far too early for anyone to have control. [​IMG] You gotta give Apple a hand for the job so far though.
     
  8. Seth_L

    Seth_L Screenwriter

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    Down economy? Not really. The recession is long over. The company I work for had a sales increase in 2003 of 80% over 2002 (which was a previous record year).
     
  9. Christ Reynolds

    Christ Reynolds Producer

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    yep, we've heard of them. but he didnt say "un-windows" did he? the majority of linux systems are still PCs. last i checked, PC does not automatically equal windows.

    CJ
     
  10. Michael St. Clair

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    Then I expect you to point that out from now on when people claim otherwise. [​IMG]
     
  11. Stu Rosen

    Stu Rosen Second Unit

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    I can't imagine that the iTunes market is even all that critical to Apple (other than as a very effective marketing tool for the iPod).
     
  12. Christ Reynolds

    Christ Reynolds Producer

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    despite your not-very tricky semantics, we both know what garrett and i meant about the PC. when you create the rules, it is easy to win the game. you win.

    anyway, about itunes or any other downloading service, i will most likely not join any of them. i can see the benefits, but i would rather pay a couple dollars more and have the cd, with artwork, in my hand. if i dont like it, i have something physical i can sell. i cant sell the downloads i pay for, even though they cost almost as much. i'm sure it has been discussed to death elsewhere. i may not be the world's biggest apple fan, but i know they are a company that will usually try new ideas before other companies, and they have the fan base to be successful.

    CJ
     
  13. Garrett Lundy

    Garrett Lundy Producer

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    Actually what I meant was:

    Apple is the only computer company to offer its own exclusive OS and physical tabletop "computer". Any company can sell a version of Linux (Since the source is essentially free), and any company can make and sell computers with off-the-shelf parts.

    Thus Dell, Gateway, Compaq, Alienware, and others could all build you essentially the "same" PC. But only Apple can sell its Mac OS and its Mac computer. Thats all I meant, They have a market-lock on non-windows, non-linux machinery.[​IMG]

    Sorry for the confusion.:b
     
  14. Lee Scoggins

    Lee Scoggins Producer

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    Agreed Mike...check this out.

    http://story.news.yahoo.com/news?tmp...c&sid=95609869

    There was a much more positive story on Bloomberg earlier (total credit card sales are up some 10-14% over last holiday) but I could not find the link. The economy is starting to roll again. [​IMG]
     
  15. RolandDeschain

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    Hysterical.

    What everyone misses is that the iTunes Music Store is nothing more than a loss leader for Apple to sell more iPods, period, end of story.

    Let 100 other "downloadable music" sites come online, doesn't matter. No one else has the iPod. For every iPod sold, that's another potential iTunes Music Store customer. For every Dell DJ sold, well the rest of the market can cannibalize itself accordingly.

    Apple essentially sold out of iPods this season, they sold virtually every unit they made. Now with the intro of low cost models on Jan 6 there will be even more potential customers of iTunes Music Store. If you look at iTunes as simply a service for iPod users and not an entity designed to make money on its own, then you will begin to understand.

    Amazing how the point can be missed so repeatedly.
     
  16. Lee Scoggins

    Lee Scoggins Producer

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    This is what I have been saying on the prior thread. The best way to evaluate results is to look at hardware plus software. As long as that's positive, then Apple will keep doing this for quite a while.

    The other thing to remember is that as the market for iPod like devices takes off, the costs of distributing digital music will plummet. I imagine we will see a day where the software side will be profitable.

    The problem with the Fast Company article is that it suggests that innovation is not valuable. Far from from it - the big success stories of our time like Target, numerous technology firms, Fedex, Kinko's (how bout that merger?), Lexus cars, Kendall-Jackson wines, Sonicare toothbrushes, all come from big innovation that is focused on the consumer benefits - Apple is focused on that with the iPod.

    The fact that some of Apple's innovations have been ripped off by others involves a question of execution and implementation. Even so, on many of these innovations, Apple has made serious profits and garnered some very loyal customers.
     
  17. Shane D

    Shane D Supporting Actor

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    that poster never mentioned 2003, i think he was talking about 2-3 years ago when ALL computer makers were losing money, BUT apple, apple didnt have a bad quarter until a year and a half or so after everyone else started losing money
     
  18. Chad A Wright

    Chad A Wright Supporting Actor

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    This is exactly why I use and love Apple products.
     
  19. Brian-W

    Brian-W Screenwriter

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    Still laughing at this one...[​IMG]

    The 'creativity' AND the 'execution' went hand in hand with both the iPod and iTunes. If it didn't, the iPod would have failed a while ago before the iTunes as we know it (purchasing music) came to light. I love iTunes as a program compared to other music managing programs.

    And Dell? Yeah, uh-huh. Apple's innovation and Dell's execution sure didn't stop iPods from flying off the shelf, and Apple selling 1.5 million songs a week.

    Sorry, didn't read the article, but that quote by 'Anderson' makes him look like an idiot.
     
  20. BrianB

    BrianB Producer

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    The FastCompany article is about longterm success, not shortterm "gains" in a market. They're saying that frequently what happens is a company like Apple starts a market & does well in it, but in the longterm, they're edged out by companies like Dell who provide a similiar service at a cheaper, massmarket price.
     

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