Record label executives are concerned about Apple shifting its focus from music to iPhone and iPod touch applications, according to a BusinessWeek report. The article suggests that due to Apple’s role as the world’s largest music retailer and dominance of the U.S.
with roughly 90% of digital downloads and a 74% share of the MP3 market, the labels are more dependent on Apple than before, while Apple’s core business is growing less dependent on music sales and more dependent on apps. “It’s no contest,” said Needham analyst Charles Wolf.
“Apple’s strategic future is tied to the App Store. There is no strategic importance to music anymore.” The report comes just one week after Apple introduced iTunes LP, a new digital album format aimed at spurring sales of full-length albums as opposed to single downloads, at a special event; the company also spent time highlighting the gaming abilities of the iPod touch, and the video camera of the fifth-generation iPod nano.
