I found the following comment while reading an article on Marketwatch on Apple's latest announcements. I think this comment does a good job of explaining what the company is doing.
BY COGITOERGO 1 HOUR AGO
The iphone story is about the recurring revenue stream from taking a portion of the phone bill. The same with itunes. Apple is generating hardware that continues to generate earnings. It is like HP selling printers in order to get significant income from the ink. This is significant because investors will pay a premium for earnings transparency.
One word: MONETIZE.
Apple realizes it's products could be even better in the future but what they're doing is building an empire around products that continue to generate money. This most overtly started with the iPod then the iPhone and now Apple TV and the MacBook Air and so on...
For these products, you have to spend more money either on music, movies or accessories and adapters. It's pretty much inevitable.
That's what I think too many companies fail to do. Apple has made this their focus. People will continue to use and spend money on Apple products and iTunes--what other alternatives are there, really?
Apple, once again, is in an excellent position.
Do I own stock? No, but I wish I did.
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