- Goldman Sachs analysts are predicting Apple’s iPad will be a huge success and the main beneficiary of the transition to tablets. Their explanation is summed up in five bullet points: consumption (iPad is made for light tasks), content (tight integration with content sources), connected (Apple ensures device is always connected), constant operation (battery life is 2-5 times that of a notebook) and commerce (iTunes registration means users are ready to buy). Goldman isn’t necessarily saying the iPad will outnumber netbooks and notebooks, although it does predict 40% of tablet sales will be cannibalistic. In two graphs they show how profitability – and thus stock price – can surge through small market share. The iPhone has amassed more earnings before interest and taxes than the handsets of RIM, Motorola, Nokia, HTC and Sony Ericsson, according to Goldman estimates. But as the next graph shows, this dominating profit has been achieved through less than 3% of handset market share. Goldman predicts Apple will sell 26 million iPads in 2011, comprising 6% of PC units.

The report lists winners and losers from consumers’ transition to tablets. Winners include Apple, chip maker ARM, and iPad vendors such as Samsung, Infineon, Broadcom and Linear. Microsoft is labeled as the primary loser due to “lost Windows sales and its lack of a competitive tablet response.” Goldman believes Intel and AMD are also losers because of volume lost to ARM-based competitors.
(Financial Times)


-- Bandcamp, one of Billboard’s five hot digital music companies to watch, has announced a revenue share model that will go into effect in August. The company will take 15% of each transaction. Its take drops to 10% after the artist’s all-time sales exceed $5,000. The basic service is free. So, no revenue means no revenue share. (Bandcamp blog)


-- Digital distributor and artist services company TuneCore continues to upgrade its services to stay ahead of the growing competition. One is bulk uploads to allow artists to send up to 20 songs at once. Another is an improved delivery system that TuneCore says will delivers music to iTunes, Amazon MP3 and others in about five minutes or less. And now there are additional genre categories as well – heavy metal, J-Pop, K-Pop and big band, among others.


-- ReverbNation has improved its Facebook app by giving it a new layout and adding some features: customizable banner, a handy tour map with links to ticket purchases, an enhanced music player, the ability to capture an email address in exchange for a free download, direct integration with the Reverb Store and an improved photo gallery. MySpace never looked so bad in comparison. (ReverbNation blog)


-- Officials in Sacramento voted to open negotiations with developers that would remake a few blocks of a downtown pedestrian mall. But the plan chosen is not the one that includes a Knitting Factory venue. Instead, the chosen redevelopment plan may include a smaller music venue run by a local bar. (Sacramento Bee)


Assorted Links
-- A live blog from a panel on cloud services. Long but worth reading. (MusicAlly)
-- EMI defends the Duran Duran remasters that have angered some fans. (The Guardian)
-- Are “Tik Tok” and “California Gurls” the same song? (Elitaste, via Daily Swarm)