Tech Goes Boom

Forbes Thinks Apple Should Spin off ITMS

In response to the suit that is currently being battled out between the AppleCorps and Apple, Arik Hesseldahl of Forbes has written an article speculating that Apple could solve the whole mess by simply spinning off the iPod and iTunes Music Store into a separate company that wouldn't use the Apple name.

While on it's surface, this may seem like an easy solution to an ongoing problem, it's shortsighted, and not in line with Apple's vision of itself. Like it or not, Apple has tried for a long time to be synonymous with creativity. It has spent a lot of money making sure it's perceived as the brand for photographers, designers, and yes musicians. Much of Apple's current branding and identity relies on its relationship to music.

Both the iPod and iTunes Music Store are hugely successful by any standards, and it could be argued that they are among Apple's greatest successes. And just as Apple uses the Music Store to sell iPods, it uses iPods to sell Macs. The idea is that customers who have used other players in the past will be so impressed by the quality and ease of use of the iPod will want to see what these people can do with a computer. The idea works. I've seen it myself more than once. You can see this in spades with the new iMac. In the introduction video to the iMac they proudly declare "From the creators of the iPod". Hell, the video starts out with the iPod. Not "from the people who brought you the G5 super computer" or "from the creators of the modern PC", Nope.

The iPod is Apple's way of connecting the common non-computer person to their brand. It reaches out to a whole group of people Apple couldn't touch previously. Those people will be buying a computer at some point, and when they do, Apple wants them to look at their iPods and think Apple.

How much is that connection worth? I'd bet it's worth a whole lot more than what it will cost to resolve this court battle. Apple has put a lot of its weight behind their music strategy, and they are not going to abandon it because of this lawsuit. Apple has already become the leading name in online music and they are not going to dilute that by confusing customers with a spinoff brand.