Velocity Reviews - Computer Hardware Reviews

Velocity Reviews > Newsgroups > Computing > NZ Computing > Itunes is here!!!!!!!!

Reply
Thread Tools

Itunes is here!!!!!!!!

 
 
Bruce Sinclair
Guest
Posts: n/a
 
      12-11-2006
In article <4579550a$(E-Mail Removed)>, "Jekyll and Hyde" <(E-Mail Removed)> wrote:
>"Jason Fanning" <(E-Mail Removed)> wrote in message
>news:b2c39$45772338$5964539e$(E-Mail Removed). ie...
>> Jekyll and Hyde wrote:
>>
>>> Lol, we're 50/50 Apple and Dell at work.
>>> The failure rate is about even.
>>> We get 5 yr next day onsite warranty with Dell.
>>> We get 1 yr send away warranty from Apple, then after that it's fix it
>>> yourself, if you can aford the outrageously priced spares.

>>
>> I've got 3 yr warranties for my Macs, and I'm just a home consumer, or did
>> you not purchase the extra warranty like you did on your Dells?

>
>The Dells come standard with 5yr warranty, we have a Corporate Gold support
>plan at no extra cost due to large volume.
>Apple however have no such free plans in spite of similar volume.
>
>Not only does the standard Apple 1 yr warranty breach our consumer
>guarantees act, but so does the so called "Apple protection plan" extended
>warranty scheme, which requires online registration within a certain period,
>or it's void.


IIRC, the CGA does not include business use, which is what I am reading into
50/50 at work. You have to make your own arrangements then

 
Reply With Quote
 
 
 
 
Lawrence D'Oliveiro
Guest
Posts: n/a
 
      12-12-2006
In message <4575ec69$(E-Mail Removed)>, Sharktbbtfy wrote:

> http://www.apple.com/nz/


Just in time for the collapse of the whole digital downloads business
<http://www.theregister.co.uk/2006/12/11/digital_downloads_flatline/>.

Not that iPod owners buy that many songs from iTMS. According to this
<http://www.theregister.co.uk/2006/09/15/zune_vs_ipod_readers_digest/>, the
average iPod only has 21 iTMS-purchased songs on it.
 
Reply With Quote
 
 
 
 
Roger Johnstone
Guest
Posts: n/a
 
      12-12-2006
In <ellg20$181$(E-Mail Removed)> Lawrence D'Oliveiro wrote:
>
> Just in time for the collapse of the whole digital downloads business
> <http://www.theregister.co.uk/2006/12/11/digital_downloads_flatline/>.


My bullshit sense started tingling when I read that article.

Fortunately someone else used the actual sales figures from the iTunes
Store to show how well it's really doing.
http://www.blackfriarsinc.com/blog/2...s-sales-arent-
collapsing.html

"The graph above looks at cumulative iPod and iTunes sales on a
logarithmic scale. Now to review a little high school math (yes, high
school was a long time ago here as well), when you plot things on a
logarithmic scale, exponential growth shows up as a straight line. A
gradually tailing off curve generally still implies substantial growth --
iTunes sold a billion songs just in the past 12 months. So the first
takeaway from the above curves should be that both the iTunes and iPod
sales are growing dramatically."

"The bottom line: anyone who claims iPod sales are collapsing can't do
basic math. The rate of song purchases is going to change month-to-month,
and Forrester's data shows that. But the iTunes Store is the fourth
largest online retailer of any type and is selling almost three million
songs a day. And of course, none of that counts revenues from TV shows
or movies either, each of which amount to millions of dollars of revenue
per year. If that's a collapse, I don't know what these authors consider
success."

--
* Roger Johnstone, Invercargill, New Zealand -> http://roger.geek.nz
* PS/2 Mouse Adapter for vintage Apple II or Mac
* SCART RGB cable for Apple IIGS
 
Reply With Quote
 
R. G. 'Stumpy' Marsh
Guest
Posts: n/a
 
      12-12-2006
In message <(E-Mail Removed)>, Roger
Johnstone <(E-Mail Removed)> wrote:

>"The graph above looks at cumulative iPod and iTunes sales on a
>logarithmic scale.


Cumulative sales are always going to grow - you can't exactly return a
iTune for a refund.

It's hard to tell from the scant detail on that graph, but it looks to
me like iTunes sales are flattening off - about the same sales in the
last 3 quarters or so. Not falling, but flattening. To really tell,
you'd need to see raw month by month figures (perhaps with 3 month
rolling average), instead of a massaged logarithmic cumulative graph.
 
Reply With Quote
 
Roger Johnstone
Guest
Posts: n/a
 
      12-13-2006
In <(E-Mail Removed)> R. G. 'Stumpy' Marsh
wrote:
> In message <(E-Mail Removed)>, Roger
> Johnstone <(E-Mail Removed)> wrote:
>
>>"The graph above looks at cumulative iPod and iTunes sales on a
>>logarithmic scale.

>
> Cumulative sales are always going to grow - you can't exactly return a
> iTune for a refund.
>
> It's hard to tell from the scant detail on that graph, but it looks to
> me like iTunes sales are flattening off - about the same sales in the
> last 3 quarters or so. Not falling, but flattening. To really tell,
> you'd need to see raw month by month figures (perhaps with 3 month
> rolling average), instead of a massaged logarithmic cumulative graph.


iTunes Store sales may indeed by flattening out. It's difficult to tell
because Apple doesn't release sales figures except when they announce
each milestone. According to the graph they reached 500 million tracks
sold in July 2005, 1 billion four months later in February 2006, and 1.5
billion three months after that in September.

My problem is with the Register's article:
"...Forrester conducted an analysis of credit card transactions over a
27-month period. And this year's numbers aren't good. While the iTunes
service saw healthy growth for much of the period, since January the
monthly revenue has fallen by 65 per cent..."

How the hell can revenues have fallen 65 per cent when the sales rate is
still increasing? Remember that the graph I linked to is logarithmic,
and that anything other than a flat line indicates not just an increase
in cumulative sales but but an increasing rate of sales.

--
* Roger Johnstone, Invercargill, New Zealand -> http://roger.geek.nz
* PS/2 Mouse Adapter for vintage Apple II or Mac
* SCART RGB cable for Apple IIGS
 
Reply With Quote
 
Lawrence D'Oliveiro
Guest
Posts: n/a
 
      12-13-2006
In message <(E-Mail Removed)>, Roger Johnstone
wrote:

> "So the first takeaway from the above curves should be that both the
> iTunes and iPod sales are growing dramatically."


The obvious problem is the number of iTunes Music Store sales per iPod is
not increasing. Each new person who buys an iPod buys an average of 21-22
songs from iTMS and that's it. Instead of continuing to buy more and more
songs over time, they seem to stop.
 
Reply With Quote
 
Lawrence D'Oliveiro
Guest
Posts: n/a
 
      12-13-2006
In message <(E-Mail Removed)>, Roger Johnstone
wrote:

> How the hell can revenues have fallen 65 per cent when the sales rate is
> still increasing?


It could be that the number of transactions is increasing, but the value of
each transaction is falling. This item
<http://business.bostonherald.com/technologyNews/view.bg?articleid=171739&srvc=biz>
says half of all transactions bring in less than USD3.
 
Reply With Quote
 
Roger Johnstone
Guest
Posts: n/a
 
      12-13-2006
In <eloh1c$gmb$(E-Mail Removed)> Lawrence D'Oliveiro wrote:
> In message <(E-Mail Removed)>, Roger
> Johnstone wrote:
>
>> How the hell can revenues have fallen 65 per cent when the sales rate
>> is still increasing?

>
> It could be that the number of transactions is increasing, but the
> value of each transaction is falling. This item <http://business.
> bostonherald.com/technologyNews/view.bg?articleid=171739&srvc=biz>
> says half of all transactions bring in less than USD3.


The number of tracks purchased per transaction would have no effect on
the revenue, although it may affect the profitability of the store,
depending on the deal Apple worked out with the credit card companies.

--
* Roger Johnstone, Invercargill, New Zealand -> http://roger.geek.nz
* PS/2 Mouse Adapter for vintage Apple II or Mac
* SCART RGB cable for Apple IIGS
 
Reply With Quote
 
David Empson
Guest
Posts: n/a
 
      12-13-2006
Lawrence D'Oliveiro <(E-Mail Removed)_zealand> wrote:

> In message <(E-Mail Removed)>, Roger Johnstone
> wrote:
>
> > "So the first takeaway from the above curves should be that both the
> > iTunes and iPod sales are growing dramatically."

>
> The obvious problem is the number of iTunes Music Store sales per iPod is
> not increasing. Each new person who buys an iPod buys an average of 21-22
> songs from iTMS and that's it. Instead of continuing to buy more and more
> songs over time, they seem to stop.


I don't think that is a valid conclusion. Some complications:

- Songs purchased on the iTunes store can be used with iTunes without
any iPod being involved. This would reduce the average number of songs
purchased by each iPod user (with additional song sales to an unknown
number of people who don't own an iPod).

- Multiple iPods owned by the same person (or family) may play the same
songs from the same iTunes library. This just requires a more precise
claim, i.e. an average of 22 songs purchased per iPod purchased.

- Damaged, lost or obsoleted iPods may have been replaced, and the same
songs used on the new iPod. If someone buys a new iPod every few years,
they might be buying 22 songs on average every few years, so they don't
"stop".

--
David Empson
http://www.velocityreviews.com/forums/(E-Mail Removed)
 
Reply With Quote
 
Lawrence D'Oliveiro
Guest
Posts: n/a
 
      12-14-2006
In message <1hqb41q.av1xhl1nflj7bN%(E-Mail Removed)>, David Empson
wrote:

> Lawrence D'Oliveiro <(E-Mail Removed)_zealand> wrote:
>
>> In message <(E-Mail Removed)>, Roger Johnstone
>> wrote:
>>
>> > "So the first takeaway from the above curves should be that both the
>> > iTunes and iPod sales are growing dramatically."

>>
>> The obvious problem is the number of iTunes Music Store sales per iPod is
>> not increasing. Each new person who buys an iPod buys an average of 21-22
>> songs from iTMS and that's it. Instead of continuing to buy more and more
>> songs over time, they seem to stop.

>
> I don't think that is a valid conclusion.


I don't see how your subsequent statements contradict my argument in any
way:

> Some complications:
>
> - Songs purchased on the iTunes store can be used with iTunes without
> any iPod being involved. This would reduce the average number of songs
> purchased by each iPod user...


Precisely.

> - Multiple iPods owned by the same person (or family) may play the same
> songs from the same iTunes library.


Precisely.

> - Damaged, lost or obsoleted iPods may have been replaced, and the same
> songs used on the new iPod.


Precisely.

All in all, you're just stating (a not exhaustive list of) reasons why iPod
users might be buying so few songs--which is exactly the point I was
making.
 
Reply With Quote
 
 
 
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Apple Itunes - "Accessing Itunes Store" hangs Richard Fangnail Computer Support 2 12-08-2007 06:51 PM
Block iTunes music sharing internally jdover@gmail.com Cisco 0 09-01-2005 08:27 PM
DataGrid: iTunes-like incremental search Luis Ferrao ASP .Net 4 01-10-2005 04:18 PM
File Sharing Intermittent but Pings fine and iTunes Sharing works =?Utf-8?B?Q2hyaXMgQ2xhcms=?= Wireless Networking 1 12-05-2004 01:07 PM
Help with iTunes =?Utf-8?B?Vml4?= Microsoft Certification 0 06-05-2004 04:46 PM



Advertisments