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"Its becoming a very meaningful portion of what we do. "We expect this business will continue to grow" even if Apple sells fewer devices in a particular quarter, Chief Financial Officer Luca Maestri told The Associated Press. But some analysts are warning of tepid sales even then, citing industry rumors that Apple may wait until 2017, the tenth anniversary of the iPhones release, before making dramatic improvements to its signature smartphone. Most experts predict iPhone sales will pick up this fall, when Apple is expected to release new models. An electric company, by comparison, would need massive scale to achieve enough efficiency to allow for profits, said Stephen Margolis, an economist and anti-trust expert at North Carolina State University. There is one thing that Apple has the potential to excel at with an automobile: using hardware, software and services to personalize the driving experience. The ability to have the driver and passenger compartment adapt to ones lifestyle and personality is something that the world has never seen or even thought about. Apples iCloud storage service, meanwhile, has a host of online competitors. Some of Apples online ventures are facing challenges, however. Music sales in the iTunes store are being undercut by the growing popularity of streaming apps like Spotify. Apples own streaming music service is growing, Maestri said, but it still lags Spotify in paying subscribers. However, he said, the school system is not responsible for turning students in to the police. "They threatened that if I didnt delete the offending music websites, then they would shut down our Internet. Daniel Arsura, a Hidden Valley freshman, never thought he would get caught with illegal music. But one day, his mom got an email from his Internet provider. " It was enough, Daniel said, to learn his lesson. "They said that they didnt appreciate when I download music," he said. Many teens agree that they dont think about the consequences when they illegally download music. Now he pays for his new music on iTunes. The challenge for new startups, however, is that leading companies subsidize their drivers and passengers as they prioritize gaining market share over profit. Both Uber and Lyft have spent heavily on driver bonuses and rider discounts and promotional credits. Teslas approach is largely confined within a legacy industry which represents its biggest challenge. While Tesla clearly has a lead in terms of software compared to other automakers, there are doubts that the company has enough resources to truly move beyond just performance-based metrics and begin to create an overall personal transportation experience. The frustration with parking, maintenance, and the actual act of driving has its limitations. Uber is currently at the forefront of offering convenient personal transport. Using a smartphone (or Watch) to indicate demand for an automobile and then track the approaching vehicle on a map in real-time goes a long way in turning the vehicle into a commodity. Uber begins to question whether car ownership is the most convenient way of getting from Point A to Point B. In fact, artists are losing money from people who download music illegally. The illegal music websites, on the other hand, have a larger database and variety of material, because no one regulates what material goes on the site. The Recording Industry Association of America estimates revenue from artists who sell music online. Companies born in a mobile era such as Uber and Lyft are best positioned because they can extract value from a sea of commodity, where all of the cars are the same in and out. I have little confidence that the current fleet of automakers will be able to compete in an industry built on a different value proposition. Mobile companies wouldnt be limited by car manufacturing which will represent a ball and chain. This is the primary reason why I fear Tesla, a pioneer in electric vehicles, may remain a pioneer because of its manufacturing facility. There is now a certain level of disdain in the automobile buying market. If Ubers success and popularity arent enough evidence that the world is ready for a new way of personal transport, consider the complete destruction of car culture in the U. , where most of todays car loyalists still look at the 1950s and 1960s as the pinnacle of car fandom. Today people buy vehicles because they need to. However, there was one thing that he did not expe