Tuesday, August 18, 2009

Apple Sells 25% of US Music

The news represents continued growth in iTunes market share. While carrying 69% of digital sales, the growth in digital sales suggests Apple's slice may get bigger as its pie gets bigger: digital is expected to equal physical album sales by the end of next year.

Apple isn't just defending the iPod with the store, it's really placing Apple in a position to fund marketing for Apple properties like iTunes, the App Store, iPods, iPhones, and anything Apple makes that interfaces with the above. Good experience with the store should result in warm fuzzy feelings about Apple's products generally.

The halo is apparently no joke. Despite being only the third-largest smartphone vendor with under 14% of sales, Apple claims a full third of smartphone profits. Pushing Apple products with the strength of associated products -- which themselves offer potential profits -- can't hurt Apple's position.

No comments: