This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple Rocks On With Digital Music

"They don't really need to do anything crazy -- the competition is not there right now," added the analyst. "There is no one that is going to dethrone them anytime soon."

According to figures released last month by The NPD Group, Apple owned 69% of the digital music market in the first half of 2009, followed by Amazon (AMZN - Get Report) MP3 with just 8%. Customers have already downloaded more than 8 billion songs from iTunes since its launch in 2003, but there is room for growth.

The NPD Group found that CDs accounted for 65% of all music sold in the U.S. in the first six months of the year, with digital downloads making up the remainder.

Apple could expand this by pushing more of multimedia experience, according to Gandhi.

"They might want to grow that by offering other things like the rumored 'cocktail' project," she said. "That seems to me more realistic than any other speculation that we have seen."

An attempt to stimulate digital sales of albums, the cocktail project is said to involve interactive booklets and sleeve notes bundled with music downloads. The Financial Times recently reported that Apple is already working with music labels such as EMI and Sony Music ahead of a September launch.

Intriguingly, the invites to tomorrow's event bore the Rolling Stones lyric "it's only rock and roll, but we like it," hinting at some form of high-profile music announcement.

Ultimately, though, Apple's iTunes strategy may be something a sideshow in its broader consumer tech circus.

"They essentially see themselves as a device company," said Gandhi. "iTunes is a good business for them, but it's not what drives them."

-- Written by James Rogers in New York.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
AMZN $659.59 0.00%
NFLX $90.03 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs