Originally Posted by MickeyDora
I will agree with you on that...
But Apple will not release a DVR for the same reasons I have said before. Just look at the numbers that Steve gave about the number of downloads the iTunes store had in the last quarter...that is a lot of revenue for Apple.
Even your logic is preposterous. Or maybe your math is simply poor.
Steve quoted 8 million video downloads for the most recent quarter. To my recollection he didn't say they were all paid (remember, there are a ton of free videos of various kinds to download) but let me give you the beneft of the doubt for the time being and submit that they were. Let me also give you the benefit of the doubt and say that the rate of video downloads will increase by TEN times
in the coming year - a rate Apple would probably be thrilled at. That would get us to 320 million video downloads in the coming year (8 million * 4 quarters * 10). That's $640mm in revenues at $2 a pop.
For a company at a revenue run rate currently approaching $20 billion for the coming year, your "a lot of revenue for Apple" amounts to less than 3.5% of the total - and don't forget that's assuming the enormous growth rates I used for the calculation which are, let's admit, highly unlikely.
Even if you say that the net margins on the video downloads are (much) higher than they are for Apple hardware, I'd still say that any rational analysis of Apple's financial performance breakdown now and going forward can result in no conclusion other than that Apple cares more - exponentially more - about hardware sales than it does about video download sales.
Plus - you continue to choose to wear blinders to the manner in which paid downloads can happily coexist with DVR functionality.
I won't continue to argue with you - you've proven to be illogical and ill informed. Feel free to have the last word, at least until the Apple DVR comes out.