“Alexa is a competitor to Siri. Apple made an attempt to take on the Echo with its own HomePod speaker, so quickly partnering with Amazon felt like an admission by Apple that it can’t generate the kind of momentum in the home that Alexa has captured”https://www.cnbc.com/2019/01/09/apple-walled-garden-starting-to-show-cracks.html …
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Replying to @BrianRoemmele
I think it as the right strategy but the timing is odd. They appear to be keeping their vertical strategy with their unique services but expanding their horizontal strategy with commodity services, such as video and music.
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Replying to @jdanielcook
Daniel, Indeed. It is important to understand that Apple Music streaming service is a net loss to Apple. Every song that is played is a residual paid to the artist. Thus if one were to pay $9-$14 per month and use Apple Music aggressively and not buy an Apple device = Big Loss.
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Replying to @BrianRoemmele
I agree Music doesn't make them money but I bet they will only gain users w/o Apple devices through family plans. They are losing iPhone users to Spotify or Amazon Music, I'm sure they have the stats.
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Daniel, indeed. But the reputational risk of promoting Alexa over Siri is far more costly. Remember, the extra few bucks a month are not going to cover the net loss if the streaming volume increases even 6 fold over standard use. They pay artists like all other music streams.
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