Originally published June 2 2005
Yahoo's subscription-based music service should not affect iPod sales
by Mike Adams, the Health Ranger, NaturalNews Editor
Industry analyst Gene Munster said recently that iPod sales should not be affected by Yahoo's introduction of its subscription-based music service. Apple's success is largely due to having a compatible device for online music services, and could soon launch its own subscription-based music service. According to Munster, Apple will likely maintain its 80 percent share of the digital music market, in spite of other services offered by competitors.
- Piper Jaffray senior analyst Gene Munster said today that he does not think sales of the iPod will be affected by Yahoo's new subscription-based music service offerings.
- "We do not anticipate the market share of the iPod will be meaningfully impacted by the emergence of Yahoo!
- and other music subscription services," Munster said in a research note obtained by iPodlounge.
- "In addition, if subscription services become more successful, we believe that by year end Apple will introduce its own version of a subscription based music service."
- "We have seen over the last two years that the success of online music services is driven by compatible devices," Munster said.
- "As a datapoint, despite new music services in the past year, Apple has maintained its ~80% market share in the portable audio device market.
- In other words, the risk to Apple is a killer new MP3 player, not a new online music service."
- Munster also reiterated his that by the end of 2005 more than 35 million iPods will have shipped.
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