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With sales of its splendid new G4 laptops gaining pace after the phenomenal five-year run of the iMac, Apple Computer Inc.'s shareholders should be beaming. Apple chief executive Steve Jobs, wearing his trademark black mock turtleneck and blue jeans, certainly hoped so when in late April he unveiled the company's much anticipated iTunes software, which allows users to purchase music online legally and affordably.
Most Apple shareholders, however, aren't applauding Jobs' sudden infatuation with the music industry. Nor are they particularly pleased with the company's otherwise moribund business strategy or a stock price that has stagnated for the past year.
What's the problem? Apple has failed to rebuild its flagging software and hardware businesses despite its brilliant marketing campaigns. And now the company's strategic direction appears more desperate than ever as it ponders whether to deploy its $4.5 billion cash hoard to buy and resurrect Universal Music Group, the world's largest music label.
Shareholders reacted to news of Apple's informal negotiations for Universal with ailing French conglomerate Vivendi Universal SA