You don't hear a lot about Amazon.com's
Don't worry, Apple
The even more intriguing stat in the NPD report is that just 10% of those who have bought MP3s from Amazon's nascent storefront were previous iTunes customers. In other words, iPod users aren't the ones flocking to Amazon, even though Amazon is selling high-quality MP3 files for less than Apple offers unrestricted MP3s.
This should tell you a few things:
- Apple's iTunes customers are a pretty loyal bunch.
- The only real threat to iTunes is a slowdown in iPod and iPhone sales.
- Apple doesn't have to compete on price, even in a level playing field with a commoditized product.
You should still tip your hat to Amazon, though. It is succeeding where dot-com rock stars such as Yahoo!
Although Apple isn't yet nervously eyeing its rearview mirror, Amazon will prove to be a smarter competitor than anyone else Apple has faced yet. Even if it takes a year or two before things gets interesting, you won't want to miss the race.