“Digital music player has been touted as a saviour. But are the numbers sustainable? […]
.Mr.
Milunovich [analyst at Merrill Lynch & Co.] calculates that iPod and iTunes will contribute about US15 cents a share to Apple’s earnings this fiscal year, rising to US25 cents a share and revenue of $US2-billion by 2006.
But, as in the past, don’t expect it to be all clear sailing for Apple.
Critics say the technology firm is going out on a limb by concentrating so much of its future on the iPod and the online music business, which is still in its infancy.
During the fiscal first quarter of 2004, 53% of Apple’s retail segment sales came from iPod, or other branded and third-party peripherals, software and services.”
