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What’s Apple up to? Dennis Sellers has some thoughts:

“Although the music store and iPods may be a way to entice more people to the Mac platform, there may be an even more important piece in the puzzle… Analyst Charles Wolf of Needham & Co. estimates that once Apple has the Windows version of iTunes in place, the store could capture 20 percent of the pay-per-download market. This could translate to $600 million in annual revenue and $50 million to $60 million in operating income, nearly equal to Apple’s $65 million in profit for the 2002 fiscal year, Zeiler notes. And that’s not even counting the increased iPod sales that should be generated.”

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