itunes slow sales report possibly wrong

December 15, 2006

Apple claimed that the Forrester report was ‘simply incorrect’, with Forrester standing by their claims, saying that the 65% figured was related to ‘seasonality’, or seasonal impact.

However it really sounds like backpedalling, as the Forrester report caused Apple’s share price to dip 3% and caused mild panic on Wall Street.

Apple has spoken of billions of sales through iTunes, but they also freely admit that iTunes delivers little to Apple’s bottom line – it is sales of iPods that matter most to Apple. iTunes itself remains the primary conduit for getting songs onto the iPod, whether ripped from CDs, illegally downloaded from P2P sites or purchased from the quasi-legal/illegal Russian mp3 site allofmp3.com or purchased through the iTunes music store.

It’s also the easiest way to subscribe to audio and video podcasts, and transfer video files that have been converted into an iPod compatible format. While third party methods to exist to transfer content onto the iPod, iTunes remains the only official and certainly the easiest way.

Given the amount of publicity generated by the Forrester report and now the contrary ComScore report, it’s quite possible a lot more people have delved into the iTunes store to have a look around and perhaps even purchase some content, although any spike from these reports is not yet public knowledge.



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