Posted December 30 2003 - 02:12 AM
| 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. |
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.