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Technology Stocks : Apple Inc.
AAPL 273.40-0.1%Dec 26 9:30 AM EST

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To: clean86 who wrote (69211)9/26/2007 2:03:24 AM
From: Cogito  Read Replies (2) of 213177
 
>>Although Apple makes good money on the hardware the whole point of the iPod was to generate iTunes sales. The hardware is useless without the content to go on it.<<

Clean -

I'm sorry, but I have to differ with you on this. Jobs has said many times that Apple's goal in even having an online music store is to sell more iPods.

When Apple first introduced the iPod, they didn't even have an iTunes music store yet. Of course the hardware is useless without content, which is why the iTunes application makes it easy to rip music from your own CD collection.

Apple makes just a tiny profit on the online music sales, but they enjoy good margins on the hardware.

- Allen
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