Yes, folks. Apple (NASDAQ:AAPL) does Windows.
Yesterday, the company launched its popular iTunes music download service in the Microsoft (NASDAQ:MSFT) world. The buzz has been huge for Apple's entry as it has managed to sell -- yes, sell -- 13 million downloads since launching the service for Apple users back in May.
Before you start working the numbers in your head -- given Apple's exponential potential under the significantly more popular Windows platform -- let's be realistic here. When Apple rolled out Windows-enabled iPods, the portable audio players didn't outsell the Apple models. They simply matched them.
So, sure, if opening up iTunes to the Wintel world translates into a doubling in digital music sales, it would be noteworthy. But hasn't the Windows world been given too much time to feed the freeloading ways of peer-to-peer MP3 networks? While Apple users are bred to pay for quality, can the same be said for the Windows citizenry?
Time Warner's (NYSE:TWX) America Online hopes so. It will be providing a convenient and contextual iTunes gateway for its subscribers throughout the leading online service's music areas. That's a good move for both companies. AOL subscribers are already accustomed to paying more for access than vanilla dial-up connections.
Apple also beefed up its spoken word library by announcing a partnership with Audible Inc. (OTCBB: ADBL.OB) to provide audio books and other spoken content for the upstart service.
But Apple isn't stopping there. It's teaming up with Pepsi (NYSE:PEP) for an ambitious online promotion that will give away as many as 100 million downloads. Yes, the company is going to give away six times as many downloads as have been already purchased. Free trials are great, especially if they hook a potential customer, but this might also backfire by cheapening the value of an iTunes song file.
Apple has to watch its step as it walks a thin guitar-string line separating its established crowd of loyal users and the thrifty masses. It's a long fall down either way.
Have you checked out Apple's iTunes Store? Do you think it will fly in the Windows world? What about giving away all of those downloads to Pepsi drinkers? Good move? All this and more -- in the Apple discussion board . Only on Fool.com.
