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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: NAG1 who wrote (44579)	5/10/2005 1:47:31 AM
From: Cogito	Respond to of 213182

>>Have seen much more stuff on the web like this recently macobserver.com dealing with competition for the iPod<< Neal - It's interesting to note that ever since the iPod was introduced, there have been articles and discussion about its competition. But for the most part, it's all about competing devices that are not yet on the market. iPod seems to continue to do well against its actual competition. I'm really not too concerned about how it might do against vaporware. - Allen

To: NAG1 who wrote (44579)	5/10/2005 10:27:03 AM
From: Doren	Respond to of 213182

Neal, I think you are right about journalists not understanding the symbiosis between iPods and iTunes. They are also two completely different types of businesses. iPods are about profit margin which will diminish, iTunes is about cash flow which will steadily increase until something disrupts digital media, which doesn't seem likely in the near future. Here's another thing I don't think many people consider: Apple has something like a 90% market in mini hard disk music players. So I think people are thinking it can't get much higher. But the truth is that only a tiny segment of the public own hard disk music players. The possible market has tons of room to expand especially as prices for components gradually drop. So even if Apple's share of the market goes down they will still own a huge amount of the business. In other words 50% of a billion players is FAR better to own than 90% of 100 million? So Apple has no where to go but up and these journalists seem to be blind to this message. Eventually the everyone's margins except Apple's will become razor thin, just as it does in all technology, but by that time there will be new targets on the market.