Wednesday, September 05, 2007

Apple announcement

Here is my guess...new wifi enabled iPods, but they will only allow for iTunes. I also am jumping on the AppleTV bandwagon and am saying they will release a new AppleTV. This time it will offer DVR features and will be set-up to allow for the addition of a movie ordering feature (ie. OnDemand netflix). This again opens up another revenue stream for Apple, which is what is amazing about Apple's business plan for the last number of years.

In a stock market where you need to increase profits 10-12% year-over-year you can't consistently do just by expanding current operations. You must constantly be looking for new revenue streams. New untapped ways to make money. Itunes is the original example and how much have they made off that. Now you have the iPhone, where they are not only making sales money, but they are also making commissions from AT&T for every user who signs a contract. For example, Apple makes $8 dollars for every new AT&T customer who signs up with the iPhone. Let's say 150,000 new customers come to AT&T with the iPhone. This works out to 1.2 million dollars, which for 186 billion dollar company is not a lot. But it money that came out of nowhere, which cost them nothing. Long story short...I will be kicking my self in the ass for not buying Apple at 91 for a long time.

Check back to MediaDork later today to see analysis of the Apple announcement from a techs effect on society perspective.

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