Apple: Beware back to school blues

$0.99 for each song downloaded, iTune on apple.com counts for 38 percent of Apple's total sales, up from 16 percent a year ago. When i see this number, I couldn't believe it. I did expect the music downloading could be so huge. So I think the music on iTune is elastic. But if it increase its price for one more cent, it will decrease the quantity demanded dramatically. And it will affect the total revenue which will decrease.

Apple sold 6.2 million iPods for the second quarter. i think the music for downloading and the iPod is complements. When the quantity demanded for Ipod goes up, the quantity demanded for music must go up because each 20 giga bytes harddrive can download approximately 2000 songs. And downloading from peer to peer software is illegal, so people would go to iTune to download legal music.

anybody have any idea? or anybody know the elasticity for music online? i mean the exact number.