Summary
Steve Jobs has fought over and over about iTunes being at 99 cents with no change ever. What happened?
Analysis
If we view this week the major change has been in iTunes pricing and its MacWorld week. Since the start of the iPod Mr. Jobs has had only one price for songs and one price for movies and has fallen on his sword about this a number of times. How come the sudden shift? Maybe Mr. Jobs is slowly moving away from Apple.
No innovation from Apple this week. The rumor mills were full of two maybe three new computers and nothing. Could their be an internal struggle at Apple between Mr. Jobs and the management team looking to the future. I believe so.
Apple has been expanding via new outlets for its products, ie new counties to sell the iPhone, Walmart to sell the iPhone. This has been the way to keep sales up. If you were to remove the new channels, actual sales would be lower year to year. Maybe the iTunes pricing is also a move to boost sales and revenue. The sale of popular songs at $1.29 is a 30 cent per song boost in revenue and the lower sale of old songs I am certain will not have a large effect since they are not sold as often. The end result will be a boost in revenue.
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