“Apple’s strategy at the moment seems sound. Adam Engst, publisher of Mac community newsletter TidBITS, told the E-Commerce Times that with more than 1 million iPods sold since the device was introduced, Apple likely is enjoying a significant profit margin. Moreover, the iPod marketing strategy shows the company is moving in the direction of consumer electronics while still leveraging its many millions of Mac users as an initial target market.

‘And just as with the iTunes Music Store, the iPod is simply better done than most of the competitors—better interface, better integration, better industrial design and so on,’ Engst added. ‘If Apple can repeat that win in other areas that bridge the gap between computers and consumer electronics, they could be highly successful, even without gaining much market share on the computer side.’”