Unlike Microsoft, Apple never had to compete in the browser space. Instead, it aligned with Netscape, AOL or Microsoft whenever needed.

Analysts were not even sure if Apple had an Internet strategy to begin with.
However, its Internet plans came to fore when it unveiled its in the year 2000. It introduced a new category of Internet services called iTools; a completely redesigned Apple.com web site featuring iReview and iCards; and a multi-year partnership and investment with Earthlink for Internet access.

But Apple’s biggest move came when it launched iPod and its companion online—iTunes. For the first time, Apple touted a business model centered on Internet.
It said “Buy iPod and download the music from iTunes, 99c per song”. Sceptics were not sure if this would work. But work it did…big time.

As Steve Jobs said in a recent keynote…”But as you know, iPod is only part of the story. What I’d like to do now is talk about iTunes. iTunes has a market share of 88% for legal US downloads. We have sold over 1.5 billionsongs. If you look at all the music that’s legally distributed in the US, and CDs and online iTunes is now the fifth largest legal reseller of music in the US. We’re on a trajectory to surpass Amazon and become #4 in January 2007.Outside the US, there are iTunes stores in 21 countries . It’s #1 in every single country.”

Apple is sure on its way to become Apple dot com with its iTunes now offering TV shows and movies. Its dominance in the digital world is sure taking the company into consumer’s homes, cars, mobiles…while taking a share of their wallet.

And, yet again, Apple has to fight it out with Microsoft, this time for the dominance in digital marketplace.

Related links
Steve Job’s key note address
iPod at Wikipedia