Apple, Motorola iTunes on cell phones a harmonious deal that benefits both companies 




"It was a bit of a shock when Apple announced a deal on July 26 to put a special version of iTunes software onto Motorola cell phones. Owners of certain high-end handsets will be able to download to their phones songs stored in both Mac and Windows versions of iTunes, including songs purchased from iTMS. Jobs has given the world's second-largest maker of handsets the first license to use FairPlay," Alex Salkever writes for BusinessWeek.

"Apple fans and analysts are wondering if Jobs isn't letting a fox into the iPod henhouse. They fear the deal could cannibalize the $1 billion or more in annual iPod sales in exchange for less-profitable digital-music sales and customer growth of dubious value. At the July 26 press conference to announce the pact, Jobs stated -- via video cam -- that this wouldn't happen. And he's right. What's more, the potential benefits of this deal easily outweigh possible downsides," Salkever writes.

"It's clear that Jobs's decision to hook up with Motorola won't threaten the iPod's position in the near term," Salkever writes. "And the harmonious arrangement could well enhance Apple's position in the digital-music market and cement iTunes as the preferred digital jukebox for handheld devices. What's not to like?"

Full article here. 

Posted: Thu - August 5, 2004 at 03:47 PM        

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