Archive for the ‘Apple’ Category

Why You Should Buy Apple Stock

Sunday, July 18th, 2004

1. Apple has the music download market locked up. I know this isn’t the conventional wisdom. It’s too soon to tell, Microsoft is about to jump in in a big way, the big music labels will jump in eventually, etc., etc. It is true that we are in the very early stages of the transformation of the music business, and that Apple is still a big frog in a small pond. However, Apple is the current leader by a wide margin, and they have implemented a very Microsoft-like lock-in. iTunes only works with iPod. iPod only works with iTunes. They both only work with the Apple Music Store. And, this proprietary universe provides the best user experience, by far. This means that nobody is going to leave the Apple world once they have bought in. All their songs are stored in aac format on their iPods and in their iTunes. And so many more people want in, Apple can’t even meet the demand. Airport Express and the BMW connection just make it all even more attractive and even more sticky. No doubt Microsoft will come out with an iTunes clone that is inextricably bundled with Windows, and they may even give away music players, but it’s already too late. Apple is over the hump. It’s where people want to be. And, unlike the choice between a Windows PC and a Mac, if you want to be compatible with those around you, you choose Apple.
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