Analyst: Apple Market Share Is A Negative For Industry

Fulcrum Global’s Richard Greenfield looks at the stunning Apple 3Q05 results and sees problems for the rest of the online music market. Despite greater competition Apple’s MP3 player market share increased to 75 percent from 70 percent while the share of legally purchased music only jumped to 80 percent from 70 percent. Greenfield’s takeaway: “… AAPL’s stranglehold on pricing (meaning not allowing the music industry to have flexibility from the current $0.99 per song price point) and its proprietary stance toward DRM (lack of compatibility) are not going to change anytime soon. Apple’s market share needs to decline substantially for its strategy to change and its market share is actually increasing from an already high level. We view this negatively for the broader music industry.”

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