Analyst: Apple music business to grow to more than $5 billion by '06

Posted:
in iPod + iTunes + AppleTV edited January 2014
One analyst expects Apple to nurture its music division into a $5 billion business by 2006 through expansion of its iTunes music technology to new devices.



Speaking to CBS Marketwatch, Steve Lidberg, of Pacific Crest Securities, said that a flash-memory music player, and new initiatives in 2005, should help Apple expand its music business to more than $5 billion by 2006.



"We look for Apple to introduce a flash-based iPod and wireless accessories and new types of audio content to monetize [its] customer base," Lidberg said. He added that he expects 2005 to be a "strong year" for Apple to initiate new partnerships that will deliver iTunes to more devices.



According to industry estimates, between 55 percent and 60 percent of all digital music players sold are flash-based products. And with Apple having already captured about 40 percent of the digital-music player market that is based on hard drives, analysts tell CBS Marketwatch that they see Apple's current success with the iPod as a harbinger of things to come in the flash market.



The Apple Phone



Also this year, Apple is expected to debut a new breed of cell phone, which the company is jointly developing with Motorola Corporation. According to AppleInsider sources, the handset will feature flash memory, an embedded version of iTunes, and Bluetooth wireless connectivity.



Sources say the Bluetooth connectivity will act not only as a means for syncing music content with iTunes on Macs and PCs, but will also support wireless audio streaming to bluetooth headphones. Though it remains unclear if Apple will market its own brand iPod compatible Bluetooth headphones, one third party iPod developer is rumored to be developing a mystery product that will boast compatibility with the new Apple cell phone. This product is expected to debut in late January and ship by summer.



Like some SonyEricsson phones on the market, sources say the Apple phone will also be capable of tracking information and displaying real-time Caller ID info on an external computer display (connected to a Mac or PC with Bluetooth). Another feature will reportedly gather and transfer a user's most listened to songs from the computer to the Apple phone with a single click.



Apple has yet to say when it will officially launch and demo the new phone. Industry insiders expect the phone to debut in January, but not necessarily at next week's Macworld Expo. It's not expected that the phone will be immediately available upon its debut.

Comments

  • Reply 1 of 12
    bdkennedy1bdkennedy1 Posts: 1,459member
    A Mac is a PC. I can't stand it when people assume a Personal Computer means Windows.
  • Reply 2 of 12
    Quote:

    Originally posted by bdkennedy1

    A Mac is a PC. I can't stand it when people assume a Personal Computer means Windows.



    Yeah! Especially these characters who should know better!

    http://www.apple.com/itunes/
  • Reply 3 of 12
    Quote:

    Originally posted by bdkennedy1

    A Mac is a PC. I can't stand it when people assume a Personal Computer means Windows.



    Well, that distinction goes back to the days when all you had were IBM PCs, clones and Macs. It's just a carry-over is all.
  • Reply 4 of 12
    tednditedndi Posts: 1,921member
    Holy Poop!



    If the ITMS becomes a 5billion dollar company in a year what kindes of R&D can apple devote to other products and services!!



    Wow I hope so!!



    It doesn't hurt to be an apple shareholder either!



    Go apple, great products and profit too!!
  • Reply 5 of 12
    Quote:

    Originally posted by TednDi

    Holy Poop!



    If the ITMS becomes a 5billion dollar company in a year what kindes of R&D can apple devote to other products and services!!



    Wow I hope so!!



    It doesn't hurt to be an apple shareholder either!



    Go apple, great products and profit too!!




    Well, I think he was referring to the entire "music division" (which is not really a name Apple uses...he is referring to the iPod division)...so this includes iTMS + iPod.
  • Reply 6 of 12
    hmurchisonhmurchison Posts: 12,125member
    5 billion sounds about right. Maybe more considering there are millions of new iPod owners just starting out and they will soon be hooked on iTunes downloads like many of us.



    Couple that with the inevitable car and home players that will support Protected AAC and you have a nice little bit of momentum.



    I think Apple realizes that iPod/iTunes/Digital Music may be just the elixir they need to compete a bit more agressively against MS on the computer front. If Apple's DM division is pumping in 5-6 billion extra dollars by 2006 hell the thought of losing MS Office is a wee more bearable considering Office X doesn't equate to nearly that much revenue.
  • Reply 7 of 12
    coolfactorcoolfactor Posts: 1,268member
    Quote:

    Originally posted by bdkennedy1

    A Mac is a PC. I can't stand it when people assume a Personal Computer means Windows.



    There is and always will be a slight distinction between a Mac and a PC. "PC" stands for "Personal Computer", of which the Mac is one, but "PC" *also* refers to an IBM-compatible (DOS-compatible) computer, of which the Mac is not one.



    I will never refer to a Mac as a PC. They're in a totally different class.
  • Reply 8 of 12
    jambojambo Posts: 3,036member
    Moving to Digital Hub...
  • Reply 9 of 12
    coolfactorcoolfactor Posts: 1,268member
    Quote:

    Originally posted by Jambo

    Moving to Digital Hub...



    Anyone think there's a point where minimilist is too minimilist?



    All this time spent on a Windows PC is starting to affect me... blah! I want my Mac back!
  • Reply 10 of 12
    Interesting to see that Apple have chosen to partner with Motorola for their expansion into the mobile phone space.



    As a European Mac user it seems clear that SonyEricsson support for MacOS seems to be as close as one can get, but then again they have a really great HUI [UIQ via Symbian] and so perhaps the guys at Moto would benefit more from having a phone Mac'd up than SE would.



    Safe to say my P910i running Saling Clicker with a G5 is about as well integrated as I could possibly wish.
  • Reply 11 of 12
    amorphamorph Posts: 7,112member
    Quote:

    Originally posted by alasdair_scott

    Interesting to see that Apple have chosen to partner with Motorola for their expansion into the mobile phone space.



    This is most likely political: Apple has a long (if not always happy) working relationship with Motorola, and Motorola's new CEO, Ed Zander, is an old friend of Steve's and a highly competent executive. It doesn't hurt that Moto is a major producer and eager to get it's old #1 spot back, I'm sure.



    But I certainly wouldn't rule out deals with other companies. If there's a laggard, my impression is that it will be Nokia, who seem to prefer to go it alone in all things (and they're not exactly hurting for that choice, either).
  • Reply 12 of 12
    Quote:

    And with Apple having already captured about 40 percent of the digital-music player market that is based on hard drives, analysts tell CBS Marketwatch that they see Apple's current success with the iPod as a harbinger of things to come in the flash market.



    Apple has 90% of the hard drive based music player market, and over 50% of the entire market.



    Quote:

    Like some SonyEricsson phones on the market, sources say the Apple phone will also be capable of tracking information and displaying real-time Caller ID info on an external computer display (connected to a Mac or PC with Bluetooth).



    This is possible with any Mac-compatible bluetooth-enabled phone, when paired with AddressBook. Maybe caller ID in the phone service sense?
Sign In or Register to comment.