Apple: Keeping toll

Is the iPod a Trojan horse in Apple’s quest for digital music domination? It may seem an odd question. Music only accounted for about 6% of sales last year. Its music service, called iTunes, is barely profitable. But profits from music could eventually swamp those of hardware. For now, Apple should maximise iPod sales. Many people still don’t have one. While 14m of the devices were sold in the past quarter, only 40m have been sold so far. And the devices earn more than a 10% operating margin. M...