Fact: Apple doesn’t make (much) money on selling songs through iTunes.
See here if you don't believe it...
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/04/14/APPLE.TMP&type=tech
"Even though Apple's iTunes Music Store made only a slight profit, the combination of the iPods and iTunes now represents about 38 percent of Apple's revenue, said Chief Financial Officer Peter Oppenheimer."
Fact: Apple doesn't make (much) money on selling songs through iTunes.
Seriously, Apple's cut is so small it only just covers their costs (bandwidth, marketing etc.). They see iTMS as support for their iPod players, and they make their money selling those.
Certain people (http://www.downhillbattle.org/itunes/) say that artists make very little money on songs sold on iTMS, and blame Apple for screwing the artists, but it is the record companies that are doing this.
Apple are the fighting the greedy record labels to keep prices on iTMS from going up, because Apple is looking out for it's consumers. But the artist will have to fight their own battle which is against the labels, not Apple.
iTunes Inspires Changes in Music Industry
iTunes Inspires Changes in Music Industry