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Whenever I think of Apple, I think of a company that has an iconic status, a trendsetter, and a leader in its market segment. Take Ipod for example, it is completely synonymous with MP3 Players, and dominates that market segment. Apple sets the trend in mp3 player industry and its distinctive ear buds make the players extremely well recognized, and creates a brand image that makes everyone want to own it.

I believe that Apple's share price is mostly carried by its Ipod sales, and I don't believe that its Computer division drives that much in comparison to the MP3 Player division (I reiterate, this is my pre-conceived notion of Apple). I also believe that most of the shares of Apple are being driven by the sales and the popularity of its Ipod, as such Apple's growth depends on that particular niche, and if Apple Inc starts loosing market share - it can have a devastating impact on the price of its shares and its future prospects.

For example, the arrival of Zune from Microsoft, can significantly threaten Ipod's market share in MP3 Player industry in the future. Although many have dismissed Zune, I believe that Zune presents the single biggest threat to Ipod and Apple Computer Inc. Microsoft will bring new products in the future that will significantly convince people to buy their product or switch from Ipod (just to disclose, I now use Microsoft Zune, and I also own Ipod).

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