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


To: slacker711 who wrote (130743)4/11/2012 9:54:15 PM
From: Cogito1 Recommendation  Read Replies (1) | Respond to of 213176
 
>>I doubt that Apple would have taken kindly to the entire music industry banding together with Amazon to try and raise prices on music. I am sure that artists would have loved it if they had stopped selling individual songs and forced consumers to buy the entire album.<<

I think Apple would have been delighted if their main competition decided to price all their music offerings higher, leaving Apple as the low price leader. That would be the direct analogy to this case.



To: slacker711 who wrote (130743)4/11/2012 11:16:32 PM
From: NAG1  Read Replies (1) | Respond to of 213176
 
Slacker,

Very different scenarios in my mind. The music industry needed a sensible pricing scenario to prevent people from stealing the music and Apple saved their you know whats. Apple got people to pay for something they were used to get for free, something difficult to do.

I think Amazon came up with a system that made it difficult for the content creators to make money on. I think Apple helped fix the model for the content creators and wrested some power from Amazon. Maybe that is the extra value that investors see in Amazon that props up their share price. Maybe it is the monopoly tendencies that Amazon has in certain markets that is the cause of its high PE.

Neal