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.”

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