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Why iPod Can't Save Apple
MadMirko writes "MacNN quotes an article from Money Magazine titled Why iPod can't save Apple, which says 'the buzz on the digital music player and "swank" storefronts are masking an ebbing bottom line, noting reduced CPU sales (resulting a shrinking marketshare), decreased profits (in part due to the lower-margin iPod and little-to-no profit at the iTunes Music Store), failure of the iPod to drive CPU sales, failure of the retail stores to increase marketshare, hidden retail store costs, no operational income, and little value in the stock.'"
Here, you won't have to sell your sole to read it:i ntro_ ipod_0404/
http://money.cnn.com/2004/03/17/markets/free
-Aaron Mitti
Yet at the same time, Google has reported an increase in the percentage of Mac users using Google. HP has licensed the iPod for distribution and iTunes for inclusion on HP computers. And furthermore, Apple appears to be making huge headway into the science and technology markets as well as gaining steam again in the higher education environments. Finally, a significant portion of the scientists I work with are switching platforms from Windows to OS X.
So, from where I am viewing the market from the perspective of an end user, Apple's market position is looking pretty good to me. This article appears to be another one in the long chain of prognosticators predicting the demise of Apple Computer, but what they always miss is the disproportionate influence the company has had on the personal computer industry. Hey, where would Microsoft get all their R&D from if not for Apple?
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Apple has 4 billion in cash and zero debt. As the Money magazine article stated, Apple makes more money from the interest on their pile of cash than they do in profit. But, they make 60 some million on both. That's 120 million a year in profit and no debt. The guy who wrote this article has an axe to grind and that's all. I would love to be in Apple's position.