Thursday, October 09, 2003

WSJ.com - Apple's E-Music Store Isn't the Next Beatles

WSJ.com - Apple's E-Music Store Isn't the Next Beatles "The tune that investors are singing about Apple Computer Inc. may be a little too upbeat.
The Cupertino, Calif., personal-computer maker's launch of its iTunes Music Store in late April triggered a run-up in the company's stock. Apple's shares quickly skyrocketed from a 52-week low of around $13 to more than $20.
A repeat performance may now be in the works. Apple is expected to open the online music store to a wider audience next week, according to people familiar with the matter. While the iTunes store is currently available to just the 3% of computer users with Apple's Macintosh machines, the company is readying a version of the service for the 90%-plus who work with Microsoft Corp.'s Windows-based computers. That could add millions of new customers and revenue to Apple's mix, and boost its share price once again.
But some analysts and money managers contend that any stock rise sparked by the iTunes Music Store is based on a false notion: that the service could be a big moneymaker. While the iTunes store is regarded as an innovative service that might lure some consumers away from free, but legally risky services such as Kazaa and Morpheus, the profits from the Apple store are minuscule, they argue."
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