E-Commerce Times has published a report that looks at Appleis current business model, and asks if the company cares about growing its market share. The article looks at the various pies in which Apple has its fingers, and asks if Mac market share is still a top focus for the company. With Windows iPods, and a Windows version of the iTunes Music Store -- in addition to having these side offerings in the first place -- many people have asked just how much Apple is evolving. From the article:
On the other hand, Meta Group vice president Steve Kleynhans told the E-Commerce Times that he thinks Apple still cares about increasing its market share.
"Take a look at overall revenues [for the iPod and iTunes Music store]. Itis a small fraction of what Apple makes on Macs themselves," Kleynhans said. "iPod for Windows is still not a huge revenue generator, and consumer electronics traditionally is not a margin-friendly market."
Moreover, no business model for selling music downloads has proven profitable, he said. Although Apple has been able to pinpoint the right business model in the past, its success is not certain -- especially given the heavy competition in this space -- which should inspire a wait-and-see attitude.
"Apple still believes in the Mac business. Itis central to its overall strategy," Kleynhans said, adding that until the iTunes Music Store can achieve a certain level of profitability, "we need to view it as marketing to push more Macs."
There is more information in the full article, including quotes from Adam Engst of TidBITS, and TMOis editor-in-chief, Bryan Chaffin. We humbly recommend it as an interesting read.