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Should Apple Have An iPod IPO?







Should Apple Have An iPod IPO?

Should Apple Have An iPod IPO? 05/05/2004 12:04 AM

Business Week is suggesting that, for all the congratulatory backslapping the folks around Apple have been doing around the iPod and iTunes, they'd be smart to spin off their music business now. The reasoning is that the music side of Apple probably has a much higher perceived value than real value right now. While Apple has been able to command considerable marketshare in both the downloadable music market (even though they don't make any money there) and the handheld music player market, the writer doesn't believe they can hold either position. They've been able to get away with being the high-priced provider so far, but competitors are nipping at their heals. Both the hardware and the downloadable music services risk becoming commodity products, and spinning out a portion of the business and taking the cash would let Apple move on to the next big thing. Of course, the main problem with this idea is that it doesn't appear that Steve Jobs believes the market is going to become commoditized (though, the article suggests, recent insider selling at Apple means other executives aren't so sure).




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