April 22, 2004 1:31 PM PDT

Apple's Jobs nixes iPod partnerships

CUPERTINO, Calif.--Apple Computer CEO Steve Jobs publicly dismissed on Thursday an overture from RealNetworks to open up the iPod, saying such a move does not make business sense.

Speaking at Apple's annual shareholder meeting here, Jobs said there would be both an initial and ongoing cost to allowing the iPod to work with other music services.

"To be honest, it's just not worth it," Jobs said, noting that RealNetworks has made a number of overtures to Apple and adding that Real's music service has been "less than successful."

Although some at the meeting questioned Apple's declining market share, Apple executives noted that the company has chosen not to compete in the low-end desktop PC market. One executive justified the move, noting that that the company chose instead to focus on the iPod, which has been highly profitable for the company and has a 40 percent to 50 percent unit share of the market.

Apple also defended the decision to close a Sacramento, Calif.-area manufacturing plant, saying it was in shareholders' best interests.

"We could save the company over $3 million per quarter by doing this," said Tim Cook, Apple's executive vice president of sales and operations.

Also at the meeting, Apple shareholders elected the company's slate of directors and ratified the company's choice of KPMG as auditor. The California Public Employees' Retirement System, an influential shareholder, had said earlier in the month that it would withhold votes for Apple's slate of directors, but Apple said about 82 percent of shareholders who voted prior to the meeting approved the management-backed slate.

Shareholders also voted down a union-backed proposal designed to put limits on executive pay. Apple management had opposed the measure.

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Typical CNET misinformation
"Apple's Jobs nixes iPod partnerships". Another attempt by CNET
to characterize Apple as closed, dead, and dying.

Seems to me that Apple made a huge partnership with HP earlier
this year. While 'media' outlets like CNET try to paint the picture
of Apple being stubborn in regards to partnerships, they don't
want to look at the reality that perhaps a partnership with
someone like REAL truly isn't worth their time. What does REAL
have to offer? Nothing. They are desperate and now despite
beggin Apple for an alliance will continue with their iPod/iTunes
bashing. REAL can't have it both ways, and CNET can't seem to
find any truth when it comes to Apple.
Posted by (3 comments )
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"IPOD very profitable"
They better enjoy it while it lasts, because when Sony enters the market they Apple will have to respone. I personally, think the only way they could response is with a price cut.
Posted by William002 (13 comments )
Reply Link Flag
enjoy it while it lasts
<a class="jive-link-external" href="http://www.analogstereo.com/tonearm_linn.htm" target="_newWindow">http://www.analogstereo.com/tonearm_linn.htm</a>
Posted by Ipod Apple (152 comments )
Link Flag
 

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