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Prior to 2004 Apple's earnings were relatively small compared to its two top competitors, Microsoft and Dell. In 2004 the company enjoyed an explosion in net income with the help of the increased popularity of its Ipod. According to the annual report net sales in the America alone went up 26% because of Ipod sales.
There are several key issues facing the company this next year. First, they have to find a way to keep increasing sales. Apple has introduced a new Ipod that plays video clips, which may be their attempt to capture more sales. I do not know how effective this strategy will be because I do not think Ipod users will be willing to pay the steep price of $300 plus...
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