1. Assumes life cycle revenues and profit margins typical for the industry. See Aaron Smith, “Merck’s Other Big Problem: Zocor,”, January 30, 2006,

2. See Dan Moren, “Analysis: Inside Apple’s iPod Sales Figures,”, January 31, 2008, for sales data; R&D data and spending levels of Apple’s competitors are based on the authors’ research.

3. “Ritz Roulette £1.3m Win Scam,”, December 7, 2004,

4. The iPod also relied on the iTunes desktop music management software, itself an existing technology ...

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