2. iTunes offer single songs for download in the US at 3 price
points – USD$69c, USD$99c or USD$1.29c. Purchasing an
entire album is approximately 30% cheaper.
The main competition comes from a number of similar on-
line music retailers that primarily offer either digital
downloads, or a subscription-based service.
iTunes Music
3. Download services includ Amazon MP3 and 7digital, now
available in 37 countries.
Subscription services include Spotify, Pandora, Google Music,
Grooveshark, Jango, Last.fm, WiMP, Deezer, among others.
Music piracy is a concern for Apple and other digital music
retailers, with 28% of internet users globally reported to access
unauthorised services per month.
iTunes Music
4. iTunes enables access to movie rentals, which typically
range from USD$9.99 to USD$14.99.
The main competition comes from live streaming services
such as Netflix, Hulu, Amazon & Quickflix, and Bigpond
Movies in Australia.
iTunes Video
5. Movie piracy is also considered to cause significant impact on revenue
in this market, although the real impact is unknown.
Apple is also developing and expanding into the TV arena, with the
development of their Apple TV product. The main competitors in this
area are services such as Google TV, and a variety of other media boxes.
iTunes Video
6. The Apple App Store opened in July 2008 via a new
release of iTunes.
Apps can be downloaded onto a variety of devices
including smartphones, PC and Macintosh computer.
iTunes Apps
7. Apple takes 30% revenue of all apps, and the app developer
gets 70%.
Their main competition are similar app stores run by Google
and Amazon, both for the Android operating system.
iTunes Apps
8. Apple offers both audiobooks and electronic books via
iTunes.
Over 20,000 hours of downloadable Audiobooks are
available exclusively on iTunes, in conjunction with Audible
iTunes Books
9. The iBooks service was released in conjunction with the
release of the iPad, via an iTunes update in January 2010.
The main competition in the eBook market is again from
Amazon, the Amazon Kindle.
iTunes Books
10. Macintosh computer, hardware and software – main
competition has always been Microsoft Windows and the PC.
iPod / iPhone / iPad smartphone and tablet devices – a variety
of competitors including Android manufacturers such as HTC
and Samsung.
Apples Other Offerings
11. iCloud – Software as a Service (SaaS), offering drive space in the cloud.
Major competitors include Google Cloud, Dropbox and SkyDrive, among
others.
A recent Nielsen report shows that 2 out of 3 new mobile phone purchases in
the US were smartphones. Of these, approximately 34% purchased an iPhone,
while over 50% purchased an Android device, indicating that the Android
operating system is looming as a significant threat in this market
Apples Other Offerings
