Well, maybe not explained, but with a splash of opinion:
So a lot of people are upset about not being able to use their $100 early iPhone credit on iTunes. Being an iPhone owner, and avid user, I was turned off after realizing this as well. I did, however, do some thinking and came to a possible conclusion.
Let's say that, on a $.99 cent song, Apple has to pay the record labels $.33, costs to run the website total $.33, and they profit $.33. Yes, those are fictitious numbers, but only to help explain why I think they didn't allow iTunes purchases with the credit.
If they did give us the credit to use on iTunes, I think Apple would have actually lost money, and not just profit, but cash out of pocket.
So, if they basically profit $.33 cents from the sale, use $.33 for the website, and pay out $.33 to the labels the dollar loss for giving out the discount would be $33 per customer who bought an iPhone.
Let's say it's 1/2 of the million iPhones that were sold were bought on the day of, or shortly thereafter, release. That's a $16.5m payout to the record labels. Not a good day for the shareholders.
This might just be speculation, but to some, an easier way to swallow not being able to use the 'free' cash for iTunes. If I'm wrong, then just let me know what you think, or better yet, what you know.
Jots
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2 comments:
When I went into the Apple store to pick up my $100 credit, they just converted my print-out into a normal $100 gift card. As far as I know, I can now use that gift card for anything in the store, including two $50 iTunes cards. So I see no reason why you can't indirectly use your credit for iTunes purchases.
Interesting. I did the same thing, and tried to use my $100 credit for a gift card and they told me I couldn't - because I could use it for iTunes if they allowed that.
Maybe my Apple guy, or yours, was incorrect. Who knows?!
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