According to the LA Times, “The world’s largest music store, Apple’s iTunes, plans to boost the price of many hit singles and selected classic tracks to $1.29 on April 7, breaking the psychological barrier of 99 cents in what could be the first big test of how much consumers are willing to pay to download individual songs.”The only odd thing about the plan is why Apple has waited so long to announce the increase. It would be logical to think that it could have pushed up iTunes prices in late 2008 because fourth quarter sales of the iPod are at their strongest.
As Apple looks at its first quarter 2009 revenue, it may be that the company sees its hardware sales are bring eroded by the bad economy. That means the only places where there might be price elasticity is software and content.
Douglas A. McIntyre
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks