SWOT Analysis of Apple's Strengths.• Apple is a very successful company. Sales of its iPod music player had boosted second-quarter profits to $320 (June 2005). Favorable brand perception had also increased sales of Macintosh computers. So the iPod gives the company access to a whole new set of segments that buy other parts of the Apple brand. Sales of its notebook products are also very strong and represent a huge contribution to Apple's revenue. • Branding is critically important. Apple is one of the most established and healthy IT brands in the world and has a very loyal set of enthusiastic customers who support the brand. Such powerful loyalty means that Ample not only recruits new customers, but retains them, that is, they return for more products and services from Apple, and the company also has the opportunity to offer them new products, for example the iPod. It has been reported that the Apple iPod Nano may have a faulty screen. The company commented that a batch of its product has screens that crack under impact and the company is replacing all defective items. Added to this are problems with early iPods that had faulty batteries, resulting in the company offering customers free battery cases. • There is pressure on Apple from the music industry itself to increase the price of its music files for download. Many of these companies make more money from iTunes (i.e. downloadable music files) than from sales of the original CDs. Apple has sold approximately 22 million iPod digital music players and more than 500 million songs through its iTunes music store. It represents 82% of all music downloaded legally in the United States. The company is steadfast, but if it gives in to music producers, it could be perceived as commercial weakness.