Echoing comments from Piper Jaffray, Banc of America Securities said today that Yahoo’s new music service will “have very modest near-term impact” on Apple. “The stickiness associated with iTunes and Apple’s hardware has had a protective effect (as they are only compatible with one another), and Apple has held share in music downloads and gained shared in MP3 in the last few quarters,” the research firm said. “If the subscription model does prove to be popular, we would expect Apple to counter and match with a subscription model of its own, which would increase margins.”
iTunes and iPods have ‘protective effect’ for Apple
By LC Angell
LC Angell was a senior editor at iLounge. Angell is known for her work on various aspects of the Apple ecosystem, including iPhone, iPad, and iPod. In his role at iLounge, Angell was responsible for a wide range of editorial content, including reviews, buyer's guides, news, and features.