Forbes: iPod masks an erosion in Apple’s profitability
The fashionable iPod has made Apple Computer beloved on Wall Street. But its success masks an erosion in the company’s profitability… The bulls hope that the introduction of Intel chips into Apple computers this year will drive Apple’s share of the personal computer market from its recent 2.5% back toward the 10% it enjoyed 15 years ago. Another hopeful thought: Because only 8% of U.S. households own an iPod, Apple can sell a lot more,” Michael K. Ozanian writes for Forbes. “But once you turn down the hosannas on the music player, you are left with a company with no hammerlock on the technology (Creative holds the patent to the interface for MP3 players) and no unique operational advantages (such as Dell’s made-to-order computers).