Neil HughesAnalyst Gene Munster issued a note to investors Monday after Apple teased on its website that it would have an "exciting announcement" on Tuesday at 10 a.m. Eastern. He said it's "probable" that Apple will announce a cloud-based iTunes service that would allow content streaming to Internet-connected devices.
"Apple is developing a data center in Maiden, N.C. that we believe could serve as the hub for such a service," he wrote. "The company has indicated that the data center is on track to be completed by the end of (calendar year 2010) and it will begin using it by then."
Munster is not, however, convinced that Apple will announce a music subscription service this week. The company has been rumored for years to be interested in such a service for iTunes, and even as recently as October was said to be in negotiations with record labels to offer unlimited access for a monthly fee.
The announcement on Tuesday, he said, represents a buying opportunity for investors. Piper Jaffray has a $431 price target and overweight rating for AAPL stock
"With Apple's growing family of connected devices (iPhone, iPad, iPod touch, Apple TV, and Macs), it only makes sense that Apple would deliver a cloud-based media service to leverage its competitive advantage in the space: devices," Munster said. "As part of this, the new Apple TV with limited storage, a lower price, and a focus on accessing content over the Internet would fit in nicely."
The analyst also reiterated his longstanding believe that Apple is planning to introduce an Internet-connected television in the next few years. He believes an iTunes cloud-based service is just another step toward that eventual goal.
Charles Martin
Christine McKee
Oliver Haslam
64 Comments
This is very possible. But I really don't find that nearly as exciting as an all you can eat music service. Apple rarely says things like "Revolutionary" or "You will not forget" unless it will change the market. A cloud service isn't really that exciting or new.
I am not sure a cloud service is that usefull today. I guess if you have a iPod touch and you have waaaaay more purchased content for it that you can use?
Syncing though iTunes for my AppleTV,MBP, iPad, iPhone seems sufficient and I cant think how I would actually use any cloud functionality, certainly not on a regular basis.
Has anyone else figured out viable use cases for a cloud based iTunes?
An iTunes cloud service would almost certainly be distributed by a CDN. I highly doubt the NC Data centre would be used for that, it will most likely be used to offer Mobile Me for free to all registered iOS users.
This is very possible. But I really don't find that nearly as exciting as an all you can eat music service. Apple rarely says things like "Revolutionary" or "You will not forget" unless it will change the market. A cloud service isn't really that exciting or new.
I don't really get the amazingness of a cloud service. Why do I want to stream music from the cloud rather play it directly from my iPhone? I like the idea of a 'cloud inventory' so once I own something I can loose it and then re-download it. There are occasions where streaming may be useful though personally I have never had a need. If they announce a cloud based video / movie content service with a huge inventory, however, I will be very excited.
thank you for your GUESS, mr. "analyst".