For investors, it further reveals Apple's ambition to supplant
(CMCSA - Get Report)
Time Warner Cable
(TWC - Get Report)
(T - Get Report)
(VZ - Get Report)
as a media distributor.
This is obviously a bold move, and
network services are within Apple's reach
The key development is the content deals Apple has struck with book and magazine publishers, and reportedly TV programmers. Following its iTunes beat, Apple's text and video distribution deals will give the company superior footing against the e-book giant --
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For Apple, the deeper push into services represents a big gamble on the next stage of growth at a time when the company may now be
reaching its peak
in hardware sales.
If analysts are correct, Apple's expansion in of its media store model is another link in what could be an all-Apple network. Given its vast media library and its host of devices, Apple is on the verge of morphing beyond online media retail to a new role as a network operator.
-- Reported by Scott Moritz in New York
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