Apple Surpasses Microsoft`s Earnings...Finally! - Media and Software Sales
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Apple is still developing strategies in this area. Although the company hasn’t begun selling software for the iPhone, it does sell iPod games in large volume. A typical price for an iPod game is $5. You can subscribe to Apple’s iTunes or GarageBand in order to purchase movies, songs, or TV shows.
You can also create your own ringtones or upload your own pictures and videos without having to pay fees to mobile phone providers. You can also use Apple’s WiFi Store to purchase media for your iPhone.
Although this area doesn’t generate profit for Apple, it does tempt customers to purchase Apple’s hardware and accessories. Other mobile phone providers cannot replicate Apple’s business model. For one, they cannot develop their own media store to compete with iTunes. Nor can they solicit and sign up other content providers.
Microsoft is Fighting Back
Realizing that its operating system, Vista, has taken a bad rap, Microsoft isfightingback. Microsoft is using celebrities like Jerry Seinfeld, Eva Longoria, and even Bill Gates to promote Vista.
At first, when the product came out, it had problems, such as driver and incompatibility issues. Customers didn’t feel the urgency to upgrade to the new operating system. However, the developers have repaired them. Microsoft has spent $300 million to promote Vista.
It remains to be seen if Microsoft’s campaign will work. If it doesn’t, you can count on Microsoft coming up with other strategies to strike back at Apple.
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