A voyage inside the iPod Shuffle

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You've got it the other way around

---As an afterthought, maybe it's a loss leader for more itunes music purchases---

Since Apple pretty much makes nothing off of music purchases from the iTMS, one should realize that it's the music that's the loss leader, that gets people to buy the highly profitable iPods.

Note that the iPod Shuffle, and the Mini are somewhat less profitable for Apple than their other products, but still profitable:

http://www.forbes.com/feeds/ap/2005/01/13/ap1757514.html

But profit margins on the mini and shuffle are lower than the company's 27 percent gross margins. Although Apple executives wouldn't provide many details, analysts speculate that shuffle margin is about 20 percent, and the mini is as low as 18 percent.

Posted by: tic swayback   Posted on: 02/25/05 You are currently: a Guest | Members login | Terms of Use

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