[jasonford1]

To continue your thought, this was the most brilliant move Jobs made by moving the consumption off the machine that produced. Now jobs can control the distribution from the machine that produces content to the machine that consumes content. He plays middle man, owns the vertical, and collects 30% every time a purchase is made. I wonder how much this strategy evolved from the early days or if the idea of separating content and owning the distribution channels was the strategy from day one. Either way it is clear in hind sight that the play payed off.

On a side note I saw a statistic earlier (reference has been lost) which said Apple sells 10% of consumer computers but captures over 50% of the industry profit. I would search for the reference in a different tab, but I'm on my iPad and can't. Thanks Steve.

[fleitz]

I believe the 50% profit figure is for "smart phones". I think DHH mentioned it in a video. Not sure what the primary source is. http://techcrunch.com/2009/11/11/while-rivals-jockey-for-mar...

This is the best reference I can find for it.