The Web Is the Future
6. The Web is the future
I think Apple understands that the future of the OS business and perhaps every facet of its operation, is online. Because of that, the company is slowly but surely acquiring companies that bring that sense of Web life to its own services. Of course, Lala won't be the first step in that process, but you can bet that it will be one of many. Apple sees the writing on the wall. And the Lala acquisition reflects that.
7. It has clout
Getting into the music-streaming business can be risky. The online companies that offer those services have been in a non-stop battle with prominent record labels. But they all lacked something that Apple has: clout. Record labels can easily pick on a company like Lala because it's small and it doesn't have much cash. But Apple is an entirely different company. And it already has strong ties with the record labels. That should significantly improve Lala's chances going forward.
8. It has cash
As Apple follows an online strategy, it's also important to note that the company has cash. Bundles of cash. Any company on the Web that it thinks will improve its offering can be acquired without much trouble. And if it feels that a competitor is gaining too much share in one sector or another, it can easily acquire another company in that space. Simply put, Apple has the cash to do whatever it want on the Web.
9. Apple doesn't want to be Google
Unlike Microsoft, Apple has no plans to take on Google online. That's a smart move. Google owns the Web's best profit centers. It has also cornered the market in those sectors. To try and compete with Google wouldn't make much sense. That realization should help Apple be far more successful than if it attempted to beat Google.
10. People know and trust Apple
Perhaps most importantly, Apple is a known and trusted brand on the Web. The company isn't just another no-name firm that people are suspect of. Apple is a household name that users trust more than many others. That's an important first step on the Web. And it's one that Apple has already taken.