Apple’s Bold Moves Are Paying Off
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Apple are clearly the dominant player in on demand audio and video. Apple’s share price has done remarkably well over the last couple of years, growing at 200% the pace of the NASDAQ. This growth has largely been attributable to the huge number of iPod sales. As of this post, “Apple have already sold over 1 million movie downloads in just 19 days!”:http://www.marketwatch.com/news/story.asp?guid=%7BCD390134%2D550F%2D4068%2DA92A%2DD8E927DC623B%7D&dist=rss&siteid=mktw
However, from what I have read *I think most _analysts_ are missing the point*. It’s great that Apple have been successful in selling so many portable media devices, but the true value of the Apple company is its content distribution platform created through it’s mobile media device dominance, and iTunes store integration. Through this platform, Apple opens up all sorts of content distribution deals which in my opinion is where the real money is. Consumer’s constant desire to be entertained, coupled with Apple’s technological ubiquity, will drive the growth of this industry and Apple’s revenue for a while to come. Just wait until they get their home entertainment system, “Front Row”:http://www.apple.com/imac/frontrow.html in to your lounge room! On top of all this, Apple have proven that they have great innovation, and solid manufacturing infrastructure to pump out what ever new and great technologies they want.
In many ways, Apple’s previous year reminds me of Tetris. Apple realised before others that all the pieces were in place, and all they needed was that one long rectangle to score a Tetris. It looks like they got the rectangle, and everyone else is left to rebuild from the scraps.
On a personal note, I bought Allison, my girlfriend, an “Apple iPod Nano”:http://www.apple.com/ipodnano/ (black) for her birthday. From the matte finished shrink wrapped box, to the secure snug fitting usb connector, the Nano has quality written all over it. I already liked where Apple was heading before I even saw their product, now I have little doubt that they are going to be even more successful.
Disclaimer: The iPod Nano is the first Apple product I have owned.
