Web Based Business Models Essay Example | Topics and Well Written Essays - 500 words

Web Based Business Models - Essay Example Many of Apples flaws are not in its operating system, Mac OS X, but rather in software like Safari, QuickTime, and iTunes. Music and iPod sales are important factors in Apple’s revenue matrix. The company sold 28 million iPods, 248 percent revenue and 409 percent unit increase year over year. Highlights of the company’s iPod line this year included the introduction of the iPod shuffle and iPod nano — the nano was introduced near the end of Apple’s fiscal 2005. Helping along iPod sales are sales at Apple’s iTunes Music Store, an international operation that operates in more than 20 countries worldwide, totaling $621 million in revenue. Apple opened up 38 new brick and mortar retail stores in 2005, expanding operations internationally into Canada, Japan and the U.K. Retail sales grew almost double, to $2.4 billion during 2005. Apple reports annualized revenue per store of $22.4 million. The retail segment of Apple’s operations reported operating income of $151 million during 2005, compared to $39 during 2004. esearch & Development (R&D) spending increased substantially for 2005 — up 9 percent from 2004 to $534 million. But with Apple having a banner year for Macintosh and iPod sales, the R&D spending as a percentage of total net sales dropped year over year from 6 percent to 4 percent. Apple highlighted lawsuits it’s currently fighting and a few that it’s settled, as well. The company noted its disagreement with Beatles management company Apple Corps. Ltd., which is scheduled to go to court on March 27, 2006, as well as class action suits for Apple’s wireless networking products, allegations of defective memory in PowerBook G4s, sales tax, patent violations, iPod battery life and more. Pending or issued settlements include undisclosed arrangements over a â€Å"music jukebox† patent, a false advertising claim against DVD Studio Pro, and a settlement with