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Dividing an Apple
2004-05-21 13:49
by Ken Arneson

Will might be interested in Robert X. Cringely's new column on an Apple reorg. He hints that Apple might eventually stop selling Macs altogether. A quote:

It wouldn’t surprise me if the company did more types of consumer devices, but the point is not to sell a workstation you get paid for once, but to create a revenue stream that pays you every week. That’s what Steve is groping for, I’m sure of it.
Consumers don't buy maintenance contracts on computers. Businesses do. That's why Apple can't really compete with the big boys in high-tech; relegated to consumers and schools, they're shut out from the computer industry's true cash cow.

iTunes is an opportunity for Apple to create an ongoing revenue stream. Sell a razor, then keep selling blades. They'll probably get a lot of competition, but they have a better chance of winning this battle than they do with computers.

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