Apple to use videos to drive hardware sales | iLounge News

News

Apple to use videos to drive hardware sales

Following a recent meeting with Apple executives, American Technology Research analyst Shaw Wu said the company made it clear that paid video offerings on iTunes, like digital music, are being sold in order to help drive hardware sales. The Apple executives, VP of iTunes Eddy Cue and CFO Peter Oppenheimer, also made it no secret that it is a priority to expand the company’s library of video offerings.

“Apple confirmed that its main goal with video is not to make money off the content but to help drive hardware sales, including iPods and Macs,” Wu said in a research note obtained by iLounge. “Unlike other resellers like bricks and mortar stores and service providers, Apple views content as strategic, choosing to break-even while leaving the majority of the profit to the content owners.”

« Sharper Image offers new iPod speaker systems

Altec Lansing offers nano adapter for inMotion systems »

Related Stories

Comments

1

That’s pretty smart. Other people have failed and these guys are trying a different approach.

Posted by Jonathan Keim on December 5, 2005 at 11:14 AM (CST)

If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods/iPhones/iPad or accessories, or if you sell or market iPod/iPhone/iPad products or services, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators.

Commenting is not available in this channel entry.
Sign up for the iLounge Weekly Newsletter

Email:

Recent News

Recent Reviews

Recent Articles

Sign up for the iLounge Weekly Newsletter

Email:

iLounge is an independent resource for all things iPod, iPhone, iPad, and beyond.
iPod, iPhone, iPad, iTunes, Apple TV, Mac, and the Apple logo are trademarks of Apple Inc.
iLounge is © 2001 - 2014 iLounge, Inc. All Rights Reserved. Terms of Use | Privacy Policy