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Apple plays customer loyalty, anti-Google cards with iCloud, say analysts

Gregg Keizer | June 8, 2011
It's all about selling hardware, and fighting Android for smartphone and tablet supremacy.

Tracks purchased via iTunes are available for downloading to the same number of devices for free.

In the end, analysts said, iCloud was all about selling more hardware, not about generating a significant revenue stream. "They want to sell more iOS devices," said Golvin in explaining Apple's strategy.

"Apple's saying, 'Don't pay any attention to the price of the thing [the hardware]; what you're buying is a way of doing these sorts of things," said Ezra Gottheil, an analyst with Technology Business Research in an interview earlier this week.

Milanesi seconded that.

"Everything Apple showed Monday, including iCloud, Lion and iOS 5, demonstrates Apple's full package," said Milanesi. "It's all about providing a richer experience [and] to deliver that 'Wow' experience, you need to have control over the ecosystem.

"That's why it will serve people very well," she added. "It just works."


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