Is Apple Inc. (AAPL)’s Pandora Media Inc (P) Challenge Imminent?

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iTunes has also never been a major profit driver for Apple. The company has always maintained that it operates its content stores slightly above breakeven, so I wouldn’t expect an Apple radio service to be a meaningful contributor to revenue or earnings. Apple’s content strategy has always revolved around providing complementary goods and services to strengthen its ecosystem and increase switching costs while generating real margins on products.

That’s how an Apple Internet radio service would fit in.

The article Is Apple’s Pandora Challenge Imminent? originally appeared on Fool.com and is written by Evan Niu, CFA.

Fool contributor Evan Niu, CFA owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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