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Apple’s Transformation: 
Role of iTunes & iOS 
Professor N. Venkat Venkatraman 
Boston University School of Management 
IS714: Fall 2014 
@NVenkatraman
Music in the 1990s
Music in the 1990s
Consumer 
Experience 
Channel 
Content 
Hardware 
Music in the 1990s: Analog Era 
Distinct Layers 
and 
Standard Linkages
Consumer 
Experience 
Channel 
Content 
Hardware 
Digital Transformation in Music 
Software [1] 
[2] 
[3]
Making iTunes Windows-Compatible 
January 2001 October 16, 2003 September 2013
Capitalizing on the network effects of 
Windows PCs and Laptops in 2003 
‘Open’ ‘Closed’
Apple & Digital Transformation in Music 
Consumer 
Experience 
Channel 
Content 
Software 
Hardware
Digital > Physical 
in 2012 
(USA) 
1. Who’s dictating the 
‘rules’ now? 
2. What are alternative 
revenue models?
iPod to iPhone 
Role of iTunes
iPhone OS iPhone OS 2.0 
SDK 
AppStore 
iPhone OS 3.0 iOS 4.0 
Copy/cut/paste 
Video recording 
Facetime | Folders 
iBooks, Multitasking 
2007 July 2008 2009 April 2010
iOS 5 iOS 6 iOS 7 
Computer-Free Set up 
OTA Software Refresh 
Maps | Passbook 
Enhanced Siri & LTE 
Auto Update | M7 Chip 
iRadio | iBeacon 
iCloud | Siri 
2011 2012 2013
900000 
675000 
450000 
225000 
0 
#Apps Downloads (Million) 
July 2008 July 2009 June 2010 July 2011 June 2012 June 2013
What Next for Apple? 
2014
Apple’s Transformation: Role of iTunes & iOS
Apple’s Transformation: Role of iTunes & iOS

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Apple’s Transformation: Role of iTunes & iOS