This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The One Thing Apple Could Do to Absolutely Devastate Pandora

Stocks in this article: AAPL P

I remove the Pandora app from the App Store.

Ever since iTunes Radio was a rumor, I argued Apple would not do such a thing. Plenty of reasons existed -- and still exist -- for it not to.

First, Pandora remains a top grossing app in the App Store. At last check, it's number four. Second, lots of people love Pandora. There's a loyalty between the Pandora user and the platform. No doubt about it. So, if Apple yanks Pandora, it would lose money and probably face considerable backlash from iOS users.

That said, Apple probably wouldn't lose that much revenue by forgoing the cut it receives every time a Pandora listener makes an in-app purchase on an iPhone or iPad to become a Pandora One subscriber. Nobody knows for certain how much Apple makes off of Pandora in the App Store, but I'm confident when I say it probably doesn't even amount to a pimple on Tim Cook's backside. It's likely pocket change to Apple.

As far as the backlash goes ... I've been through radio station format changes a million times. I've seen legendary stations come and go. When the switch gets flipped and a crowd favorite goes away, there's intense outrage. But it usually only lasts for days. Sometimes weeks. In rare instances, months. Apple jettisoning Pandora from iOS is akin, in terms of the emotional aftermath, to the format flip in traditional radio. 

Apple could not only weather that storm, it could prepare for it. It could provide some sort of perk to iOS users who will lose the ability to access the Pandora app on their iPhone or iPad. If Apple wants to continue to (misguidedly) try to keep music downloads alive, it could provide freebies to buy songs in iTunes. Or, better yet, it could offer a gift card for use in the iTunes or the App Store to any disgruntled (former) Pandora user that wants one.

Bottom line -- Apple has options. Pandora doesn't.

If Pandora thinks it could fall back on Android after getting booted from iOS, its CEO has less sense than I thought he did in the first place.

Apple hasn't even introduced the large-screen Android-killing iPhone 6 yet iOS continues to gain domestic marketshare as Android loses it. And, remember, that's (pretty much) Pandora's only game -- the US.

So the timing is ripe for Apple to take the most drastic measure of all drastic measures ... it's gaining on Android on the eve of introducing a smartphone (or two) that will help it eat away at if not completely eliminate Android's lead. Very few people would drop their iPhone simply because Pandora's gone from it. Too many other options exist to justify the switch. And lots of present Android folks will soon be switching to what will be an irresistible iPhone 6.

The more I think about this, the more it sounds like an absolute no-brainer. And, sadly, as far as I know there's nothing Pandora could do about it. If people at Pandora are reading this, the thought must turn their stomachs. If they're reading this at Apple (particularly in the iTunes wing of the building!), they've got to be wondering why this hasn't happened yet. 

Imagine if this went down ... we would instantly stop questioning if Tim Cook has the killer instinct Steve Jobs was known for during his hyper-aggressive reign at Apple.

--Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is a full-time columnist for TheStreet. He lives in Santa Monica. Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs