Apple, on the other hand, has no problems with monetization. And when applying the $4.42 that Pandora generates per user toward Apple's 500 million users, this amounts to $2.2 billion dollars. It seems aggressive, yes. But even if Apple were to reach 40% penetration, which is realistic within a year, it would still amount to just under $1 billion per year in revenue.
So for those who expect another mediocre product in iRadio and its revenue potential, it's time for you to lower your volume or change your frequency altogether. Save your energy. You'll likely need it to sing Pandora's eulogy.
At the time of publication the author was long AAPL.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV