jonesy

Apple: On an Innovation Treadmill

iTunes is not part of Apple's revenue "foundation". It is glue that holds the many parts together but it's a negligible revenue source. So the supposed cracks in iTunes are not devastating, especially since they've accomplished rentals at a price no worse than anyone else.

Apple is entering two markets that are huge and still largely untapped: handheld mobile personal devices, and home digital entertainment devices. If done right, these two markets will grow in the same way that the PC market grew over the last 2 decades. Again if done right, there's no doubt that they can grow 20% a year for the next decade. And that's not even including the fact that they have just a small part of the PC market and there's lots of room to grow there.