What are the biggest winners up to now? People want to know. Just as college football reporters have flocked to the campus of the USC Trojans, investors and consumers are definitely iTuned into what's going on in Apple (NASDAQ:AAPL) land. It's getting to the point that old iPod news is being regurgitated as new news, as my Foolish colleague Alyce Lomax pointed out yesterday.
While the recent rumors of bringing iTunes to soon-to-be released Motorola (NYSE:MOT) cell phones is indeed very old news, the fact that it is being retold indicates its importance for Apple. Earlier this week, I shared my excitement in using Verizon's (NYSE:VZ) V-Cast through Motorola's 3G compatible phone. What I didn't mention is just how super-feature-packed these new phones are. One such feature is a direct threat to Apple's recent MP3 dominance.
Using a SanDisk (NASDAQ:SNDK) Trans Flash card, the Motorola E815 allows users to download MP3s that can then be listened to through the phone. So why tote around a cell phone and an iPod, when you can have both in one? With more than 500 million iTunes downloaded so far, and a 75% share of the digital music player market, you can see why Apple wants everyone to know that you will soon be able to enjoy the same service through your SBC (NYSE:SBC) Cingular wireless phone.
Apple is intent on keeping its dominant position with iTunes, as the platform gets more people into the Mac door. A recent visit to a local Apple store provided evidence of this strategy. College students can now get a free iPod with the purchase of a Mac computer. But the iTunes and iPod duet isn't the only Trojan horse for the company. A look through the company's more recent press releases shows an enterprise that is very focused on the editing software business.
The company's iLife suite of software does not receive the press of the iPod; nonetheless, it is a critical component for bringing new buyers to the Mac. The software has been billed as the "Microsoft Office for the rest of your life." Its suite, which includes Garage Band, iPhoto, iMovie, and iDVD, offers an array of tools that allow you to capture and edit some of life's most precious moments.
iLife's inclusion on new Mac systems is Apple's way to get consumers accustomed to using its editing software, just in case you ever aspire for more. And if you do, Apple has the answer with its Final Cut and Logic lines. These additional professional-level packages could permit the company to dominate the digital editing world. Avid (NASDAQ:AVID) may keep its hold as the key supplier for those working in Hollywood, but outside of high-end productions the rest is up for Apple's picking.
In iPod, iTunes, and iLife, Apple has surrounded itself with strong products, which it hopes will soon lead to consumers buying more Macs.
Cingular's parent company SBC Communications is a recommendation of Motley Fool Stock Advisor. Click here to check out David and Tom Gardner's latest hot stock picks.
Fool contributor Jeremy MacNealy , a onetime user of the old Mac SE/30, has gone back to his roots; he now operates with an iMac. However he does not own Apple shares or shares in any of the companies mentioned.
