Apple threatens to shut down the iTunes Store!

Mark Crispin <[email protected]> amazed us all with the following in
news:[email protected]:

> Demise of iPhone coming soon?
>
> http://technology.timesonline.co.uk/.../article485988
> 5.ece
>
> -- Mark --
>
> http://panda.com/mrc
> Democracy is two wolves and a sheep deciding what to eat for lunch.
> Liberty is a well-armed sheep contesting the vote.
>

Demise of iPhone, demise of iPod, rapid decline of $1000+ computer sales
worldwide, tainted image of other products. It all smells of the demise of
Apple yet again. They couldn't force a closed market the first time and
they can't do it now.

The only proof I need is the immediate evaporation of fanbois over the last
week. Hell, even the fanboi blogs are starting to show their disgust.

They'll never shutter iTunes- the business can't afford it.

---

› See More: Apple threatens to shut down the iTunes Store!

At 01 Oct 2008 18:26:38 -0500 The Bob wrote:

> They'll never shutter iTunes- the business can't afford it.


Agreed- while I personally don't want to see fees increase, I'm almost for
it just so they can call Apple's bluff!

Fees go up $0.06, and iTunes' songs go up to $1.05 instead of $0.99.
Where's the problem? Is Apple afraid it's customer base will be hopelessly
confused when $1 <> one song anymore?

Todd Allcock <[email protected]> wrote in
news:[email protected]:

> Fees go up $0.06, and iTunes' songs go up to $1.05 instead of $0.99.
> Where's the problem? Is Apple afraid it's customer base will be
> hopelessly confused when $1 <> one song anymore?
>
>

If fees go up .06, knowing Apple, don't you suspect iTunes will be $1.49,
1.59, 1.79 or even $1.99?!

That sounds more reasonable for a company that retails a minimal laptop for
$2,499 at Best Buy that doesn't even have a DVD burner.....

Frankly, I'd like to see this HARDWARE company get out of the Sell-Me-Some-
Songs business. Then, they could concentrate on making the finest MP3
players WITHOUT having a pecuinary interest in making sure it only plays
music they're gonna SELL to you.

The hobbling crapware would come off in a week, shaking the competition to
the foundation of its buildings.

Todd Allcock <[email protected]> amazed us all with the following
in news:[email protected]:

> At 01 Oct 2008 18:26:38 -0500 The Bob wrote:
>
>> They'll never shutter iTunes- the business can't afford it.
>
>
> Agreed- while I personally don't want to see fees increase, I'm almost
> for it just so they can call Apple's bluff!
>
> Fees go up $0.06, and iTunes' songs go up to $1.05 instead of $0.99.
> Where's the problem? Is Apple afraid it's customer base will be
> hopelessly confused when $1 <> one song anymore?
>
>
>

What we're seeing here is a brick-and-mortar mentality at it's finest.
They feel they have to keep it under a buck because old-time marketing
tells them so. These aren't the days when children saved their pennies to
go to the local record store and get the latest 45.

In their infinite stupidity, they fail to realize that they hold a
precarious edge onthe competition- their market penetration is high enough
that they could probably go to $1.25 and not see a blip in music sales.
iPod owners are so conditioned to going there that the extra quarter would
simply be viewed as a "convenience fee" by many users for continuing to
have access to a familiar platform and inventory of songs.

But it doesn't really matter. The closure of iTunes would only accelerate
the inevitable crash-and-burn that is probably only months away.

"Elmo P. Shagnasty" <[email protected]> wrote in news:elmop-
[email protected]:

> waffle boy

Does your mommy know you call people childish names, potty mouth?

The Bob <[email protected]> wrote in news:[email protected]:

> These aren't the days when children saved their pennies to
> go to the local record store and get the latest 45.
>

A DOLLAR?!! I'd never have that much! Those were 29c, about the price of
a 16oz loaf of the best bread.

A dollar for a 45? How silly!

"Larry" <[email protected]> wrote in message
news:[email protected]...
> The Bob <[email protected]> wrote in news:[email protected]:
>
>> These aren't the days when children saved their pennies to
>> go to the local record store and get the latest 45.
>>
>
> A DOLLAR?!! I'd never have that much! Those were 29c, about the price of
> a 16oz loaf of the best bread.
>
> A dollar for a 45? How silly!

That's what they cost in the late 70's/early 80's when I bought them (also
about the price of a loaf of name-brand bread at the time.) Then the
"cassingle" came out at around a buck and a half for walkman/car player
users unwilling/too stupid to copy their 45s to blank cassettes, and the 45s
began to disappear. Between the cassingles and the cassette versions of
albums having extra songs or extended versions vs. the LP, the industry
REALLY wanted us to stop buying vinyl for some reason!

"The Bob" <[email protected]> wrote in message
news:[email protected]...

>> Fees go up $0.06, and iTunes' songs go up to $1.05 instead of $0.99.
>> Where's the problem? Is Apple afraid it's customer base will be
>> hopelessly confused when $1 <> one song anymore?
>
>
> What we're seeing here is a brick-and-mortar mentality at it's finest.
> They feel they have to keep it under a buck because old-time marketing
> tells them so. These aren't the days when children saved their pennies to
> go to the local record store and get the latest 45.

Agreed. But if you accept the role of iTunes store as a facilitator to
selling iPods rather than a profit center in and of itself, the perception
that iTunes is a "good deal" is important to the iPod's success.

> In their infinite stupidity, they fail to realize that they hold a
> precarious edge onthe competition- their market penetration is high enough
> that they could probably go to $1.25 and not see a blip in music sales.
> iPod owners are so conditioned to going there that the extra quarter would
> simply be viewed as a "convenience fee" by many users for continuing to
> have access to a familiar platform and inventory of songs.

Yeah, that's true now, but again, that's only because they're the leading
music store.

> But it doesn't really matter. The closure of iTunes would only accelerate
> the inevitable crash-and-burn that is probably only months away.

I doubt iTunes, iPods or iPhones are going anywhere for a long time...

On 10/2/08 5:36 AM, in article
[email protected], "Elmo P. Shagnasty"
<[email protected]> wrote:

> In article <[email protected]>,
> Larry <[email protected]> wrote:
>
>> If fees go up .06, knowing Apple, don't you suspect iTunes will be $1.49,
>> 1.59, 1.79 or even $1.99?!
>>
>> That sounds more reasonable for a company that retails a minimal laptop for
>> $2,499 at Best Buy that doesn't even have a DVD burner.....
>
> Hey, waffle boy--please show me that $2499 laptop--the "minimal" one, as
> you call it--that doesn't have a DVD burner built in.
>
> Go ahead. We'll wait.
>
> Oh, you can't. Because you made it up out of thin air.
>
> They DO have a model for more than that, and they DO have a model for
> less than that--significantly less.
>
> But tell us all, waffle boy--why does it bother you that the MacBook Air
> doesn't have a built-in DVD burner? Does your precious N800 have a
> built-in DVD burner?
>
> No, it doesn't. You end up carrying a car full of crap around with you
> so that you can have the functionality you need. But for some reason,
> when YOU do it, it's OK. When OTHERS do it, it's not OK.
It's called "Alzheimer¹s disease".

You can help Larro here:

http://www.nia.nih.gov/alzheimers

On 10/2/08 12:05 PM, in article
[email protected], "Elmo P. Shagnasty"
<[email protected]> wrote:

> In article <[email protected]>,
> Larry <[email protected]> wrote:
>
>> "Elmo P. Shagnasty" <[email protected]> wrote in news:elmop-
>> [email protected]:
>>
>>> waffle boy
>>
>> Does your mommy know you call people childish names, potty mouth?
>
> Waffle boy is "potty mouth"?
He forgot about his "braggin" about his favorite restaurant in an earlier
post.

"Todd Allcock" <[email protected]> amazed us all with the
following in news:[email protected]:

>
> "The Bob" <[email protected]> wrote in message
> news:[email protected]...
>
>>> Fees go up $0.06, and iTunes' songs go up to $1.05 instead of
>>> $0.99. Where's the problem? Is Apple afraid it's customer base will
>>> be hopelessly confused when $1 <> one song anymore?
>>
>>
>> What we're seeing here is a brick-and-mortar mentality at it's
>> finest. They feel they have to keep it under a buck because old-time
>> marketing tells them so. These aren't the days when children saved
>> their pennies to go to the local record store and get the latest 45.
>
> Agreed. But if you accept the role of iTunes store as a facilitator
> to selling iPods rather than a profit center in and of itself, the
> perception that iTunes is a "good deal" is important to the iPod's
> success.
>
>> In their infinite stupidity, they fail to realize that they hold a
>> precarious edge onthe competition- their market penetration is high
>> enough that they could probably go to $1.25 and not see a blip in
>> music sales. iPod owners are so conditioned to going there that the
>> extra quarter would simply be viewed as a "convenience fee" by many
>> users for continuing to have access to a familiar platform and
>> inventory of songs.
>
> Yeah, that's true now, but again, that's only because they're the
> leading music store.
>
>> But it doesn't really matter. The closure of iTunes would only
>> accelerate the inevitable crash-and-burn that is probably only months
>> away.
>
> I doubt iTunes, iPods or iPhones are going anywhere for a long time...
>
>
>

You're probably right, but a close examination of the Apple business
model makes the possibility more than just a pipedream.

Apple has built it's current business on the very pulic notion that the
form and functionality provided commands premium price. Witness the
number of sub-$1000 computers in their portfolio as Exhibit #1. The
iTunes/iPhone/iPod relationship is now totally symbiotic and no one
piece can really exist without the other. Recall the performance of
iTunes during the first weekend of 3g iPhones as exhibit#2. iTunes only
succeeds because of the "only option" status it enjoys with the iPod.
This was possible because they took advantage of emerging technology,
which is something that even I'll admit they do well. The problem they
now run into is that the sector is now starting to mature to the point
where they can't write the rules anymore. See emerging sites like Qtrax
and Spiral Frog and how they are helping to change the industry as
Exhibit #3.

Now factor in an economic morass they may be far bigger than anything
their consumer base has faced since the inception of the company. Their
premium-priced product line is no longer the most attractive on the
market. People are starting to recognize that they can get more useful
functionality at a much lower price from other companies. The bells and
whistles that justify the higher price in Apple's mind become
unimportant to the consumer.


And this is consistantly the downfall of Apple- they have never been
able to compete in a mature market because their business model only
works when they are able to write all of the rules and charge top dollar
to do it. The next step for them is huge- do they slash pricing to
become one of the "budget" manufacturers that they've been telling the
world to avoid for decades? Do they try to ride it out and lose sales
to the bottome of the pile? Either way, they are in no-win territory

At 02 Oct 2008 18:36:18 -0500 The Bob wrote:

> > I doubt iTunes, iPods or iPhones are going anywhere for a long time...
> >
>
> You're probably right, but a close examination of the Apple business
> model makes the possibility more than just a pipedream.
>
> Apple has built it's current business on the very pulic notion that the
> form and functionality provided commands premium price. Witness the
> number of sub-$1000 computers in their portfolio as Exhibit #1. The
> iTunes/iPhone/iPod relationship is now totally symbiotic and no one
> piece can really exist without the other. Recall the performance of
> iTunes during the first weekend of 3g iPhones as exhibit#2. iTunes only
> succeeds because of the "only option" status it enjoys with the iPod.
> This was possible because they took advantage of emerging technology,
> which is something that even I'll admit they do well. The problem they
> now run into is that the sector is now starting to mature to the point
> where they can't write the rules anymore. See emerging sites like Qtrax
> and Spiral Frog and how they are helping to change the industry as
> Exhibit #3.
>
> Now factor in an economic morass they may be far bigger than anything
> their consumer base has faced since the inception of the company. Their
> premium-priced product line is no longer the most attractive on the
> market. People are starting to recognize that they can get more useful
> functionality at a much lower price from other companies. The bells and
> whistles that justify the higher price in Apple's mind become
> unimportant to the consumer.
>
>
> And this is consistantly the downfall of Apple- they have never been
> able to compete in a mature market because their business model only
> works when they are able to write all of the rules and charge top dollar
> to do it. The next step for them is huge- do they slash pricing to
> become one of the "budget" manufacturers that they've been telling the
> world to avoid for decades? Do they try to ride it out and lose sales
> to the bottome of the pile? Either way, they are in no-win territory


While I agree with most of what you've said, both options you mentioned as
"no-win" are both possible, and nearly "winnable."
Apple's shift to Intel-based PCs a few years ago allow them to sell the
exact same sh*t as everyone else, slap OS X on it as a value-add, and sell
it for 35-points of margin instead of 10. If times get tough, they can
price head-to-head with Gateway, Dell, etc. and sell their "premium
product" for "peasant pricing" (OS X is already "paid for," so-to-speak, so
Apple actually could have a cost advantage, since they don't have to pay
themselves the $30 or so Dell, et al, pay Microsoft.) Jobs would declare
it Apple's "mission" to make "superior" computers affordable in tough times
or some-such nonsense, and the press and public would eat it up.

Alternatively, they can choose your latter route and go fully "boutique,"
sacrificing the bottom-end sales in all categories for high-margin. The
stock will take a beating, they'll lay off employees, but they could
survive on the fanboys and snob appeal alone. No matter how tough the
times are, there is always an upper class to sell to.

Keep in mind that Apple is a "manufacturer" that doesn't actually
manufacture much other than product designs and brand loyalty, so it's not
like any Apple "factories" will have to shut down. They'll order less from
Asus or whoever cranks out Macbooks this month and sell less, which,
ironically, will probably INCREASE their brand cachet amongst the fanboys
who'll now consider them "limited editions!" ;-)

In message <[email protected]> "Elmo P.
Shagnasty" <[email protected]> was claimed to have wrote:

>Exactly. And let the used market take care of the lower class.

Yeah, I always buy used iTunes songs.... Wait, no I don't, Apple's DRM
doesn't allow that.

>Hell, they may do what Lexus started back in 1990: "certified used".
>If you don't mind being a generation behind, simply head to the used
>section of the Apple store.

Apple is half way there, take a look at the "refurbished" section.

In article <[email protected]>,
"Elmo P. Shagnasty" <[email protected]> wrote:

> In article <[email protected]>,
> DevilsPGD <[email protected]> wrote:
>
> > >Hell, they may do what Lexus started back in 1990: "certified used".
> > >If you don't mind being a generation behind, simply head to the used
> > >section of the Apple store.
> >
> > Apple is half way there, take a look at the "refurbished" section.
>
> Yep. They just need to do what they do best: wrap it up in a pretty
> marketing wrapper.

Used and many new CDs are the same price, most always higher quality
audio, DRM free, than anything yoy can purchase as a download anywhere.
I don't get the whiners.
If you buy a downloaded album, simply burn it to a CD and put it back on
DRM free.

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