Financial Report Essay:
For admirers of fine crystal, there is something magical about the name Swarovski. For admires of speed and glamour there is something magical about the name Ferrari or Lamborghini. And, without a shadow of doubt, for the lovers of high technology, innovation and music there is something magical about the name Apple.
While ages ago our ancestors were bothered by the question of who came first a chicken or an egg, today the question is different. As the fame and success of Apple company and its products is increasing, the question one may rise is for example: what came first … the iPod or iTunes? In my paper I would like to present the financial report of the ...view middle of the document...
In the next years, other European countries followed, but it was a constant topic of complaint that the prices in the U.K. were much higher than all over Europe.
And now I would like to deal more closely with the financial information that is available on Itunes. Even though Itunes came to this world in 2001, it reached its peak popularity in 2003. By April 2003, iTunes Music Store had sold more than 350 million songs. It was forecasted that if Apple continued selling songs at this rate of growth, it was on its way to passing the billion-song mark before the end of 2005. Later in the report we will be able to see if these predictions was correct. In the year 2003 the growth looked exponential, though being linear, however the competition persisted(Smith).
As for the year 2004 it was revealed by the Apple authorities that the compnay had sold 50 million songs through its iTunes Music Store, with about 2.5 million songs being downloaded each week. Moreover, the Apple authorities said the sales figures excluded the number of songs downloaded through a promotion with Pepsi. Under that promotion, 100 million songs were being given away. Not being satisfied with such a success, Apple CEO Steve Jobs announced a goal of distributing 100 million songs by April, 2004. In December 2004 it was stated that the iTunes users were downloading 2.5 million songs per week. Such a number meant that Apple was selling songs at a rate of 130 million per year. Still the Apple authorieries couldn not afford simply looking at the great results because the rapid competition persisted. The main competitors the compnay was facing were stores such as Roxio’s Napster and MusicMatch, Microsoft and Virgin (Fried).
In 2005 the success was unbelievable. Apple claimed a 70 per cent market share «for singles and albums», based on its own official calculations. That year customers were buying 2.7 million songs per week from the store. Having a tendency to make forecasts and set goals, Apple announced that if they maintained the same level of sales, it would sell 140 million songs next year (Smith). Among the good news of that year it must be mentioned that, Apple had tightened its DRM policy. It chose to cut the number of times a playlist can be burned to CD from ten to seven. But the compensation for this was that Apple came up with another innovation – the downloaded music from then on could be shared among five computers rather than three (Smith). By the summer of 2005 iTunes official Stores were available in 19 countries: US, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the UK.
At the beginning of 2006 it was clear that the users of Apple’s iTunes player passed QuickTime in mid-2005, and at current growth rates iTunes should pass RealPlayer by mid-2006. The Apple’s iTunes had entered the media arena not that long ago, however it had been climbing the charts in...