Music business can double Apple Computer’s market value

Music business can double Apple Computers market value

A research group Generator has claimed that the growth in the music selling market could potentially double the size of the Apple Computers in the next five years.

The company released a paper named ‘Apple: Game, Set and Match?’ earlier this month notifying their research results.

The researchers noted that as of September 2002, music contributed only 2.6 per cent to Apple’s total revenues. Now, music sales contribute as much as 40 per cent of Apple’s revenues.

In the coming months, this is expected to go above 50% and the company would then be relying more on the music business than computers.

Andrew Sheehy, vice president of research at Generator said on this report: “Most people now understand that Apple’s music business is the main source of growth but what’s not widely appreciated is just how big the music business could become in the future. It’s a big worry for some people in the industry.”

iPod and iTunes would continue to remain main areas of revenues for Apple Computers in the coming years.

Sheehy added: “We have excluded revenues from non-music content categories such as TV shows and movies and new device categories, such as a new Apple product line aimed at the home entertainment market which would compete with products that are based on Microsoft’s Media Center PC.”