Are the iPod's days numbered?
By Jason Buckland, Sympatico / MSN Finance
There’s a certain level of arrogance we’ve come to accept with Apple.
Their prices are insane, their ads are snarky and their products are often exasperating. (Seriously, why shouldn’t I be able to copy songs from an iPod to my computer?)
Remember David Chase, The Sopranos’ creator, who got so sure of himself he kept shoving those awful Tony dream sequences down our throats no matter how unwatchable they were? That’s Apple right now.
And sure, there may be a teensy bit of prejudice on the subject here judging by the banner at the top of this screen, but know this: all is not well with the mighty Macintosh.
Hidden in the midst of Apple’s back-patting over its latest impressive quarter is a good level of concern about the company’s once-major cash cow, the iPod.
The popular MP3 player – arguably responsible for Apple’s leap into a modern mega company – appears on the rocks as business dips with no end in sight.
IPod sales were down 11.1% in the fiscal-third quarter this year, 7% from the second and another 7% year over year. Apple CFO Peter Oppenheimer even admits the trend will continue as features of the iPod are “cannibalized” by the iPhone, which has just about pulled a 2001 Tom Brady to the iPod’s Drew Bledsoe by now.
So what does this tell us about the iPod? Well, likely that its days are numbered, as the folks over at MSN Money think. But it also paints a bigger picture on the stake of Apple as a company.
Revenue from Mac’s desktop computers also plummeted 17.8% in the third quarter, compared to a 1.7% dip for laptops. Mix that up with the near-death of the iPod and MSN’s Charley Blaine believes “if Apple didn’t have the iPhone and its iTunes business, investors would be complaining about stagnant sales.”
Now, is this to suggest Apple is caving in on itself? No, not by a long shot. It’s still an overwhelming company responsible for about a quarter of the world’s cool, hip mass-produced technology.
But it is significant to note a changing of the guard is taking place here. The iPhone has not-so-slowly ripped market share away from the iPod and, with iPhone prices likely to keep falling, the thing’s retail tag will probably soon be cheaper than an iPod anyway.
Consider that, then, the answer to any Why would anyone still buy an iPod? questions floating around out there, and don’t be surprised if we’re writing the pop culture icon’s obituary within a few years.
Posted by: rick | Jul 24, 2021 9:46:22 PM
First of all margins very between companies, 2nd its called supply and demand, not everyones going to buy a new computer every 6mths supply has caught up with demand, 3rd in a recession people tighten up belts hold onto things longer. 4th and final with all the manufacturing being done in Asia and Mexico its no wonder there are no jobs in the U.S and Canada, without those jobs as a basis for the economy your at the mercy of every other nation.
Posted by: cindy | Jul 24, 2021 10:44:38 PM
Hey losers at sympatico/msn/ctv news! What do you mean by "conflict led to family tragedy" in your headline? It was the usual muslims killing their own children! Re: the four MURDERED women (3 of them teenaged girls in the Kingston canal) Call it what it is and give up the lame ass, inaccurate, so-called "news" stories on your pathetic homepage. Chicken-sh$t cowards.
Posted by: Educated | Jul 24, 2021 10:50:08 PM
cindy, you need to get a brain. looser
Posted by: Ann | Jul 25, 2021 1:05:32 AM
@ cleebie: Dear Lord. Please learn the meanings of "former" and "latter."
Posted by: cleebie | Jul 25, 2021 1:52:44 AM
iAnn i read what you typed "With the former, one company does both" Apple only makes the operating systems, not hardware just like Microsoftsoft only makes an operating system
Posted by: Mark | Jul 25, 2021 10:18:55 AM
Microsoft could only hope Apple would out design itself. Afraid not. They keep thinking outside the "xbox" and apparently don't shoot themselves in the foot designing OS that are so riddled with problems that it feeds the competition. Now if Apple ever decides to slash its premium price, their market share would explode and Microsoft would be off the radar. I own Microsoft XP and vista. XP is awesome, Vista sucks and I have lost all faith in Microsoft. Yet I really can't justify paying double just to get the system I want. Microsoft better hope Apple doesn't think outside the price box but I wish they would.
Posted by: Ann | Jul 25, 2021 1:24:27 PM
@ cleebie: Obviously, you didn't because you thought I said MS designs both hardware and software. Also, I didn't use the word "make." There's a huge difference between "make" and "design."
Okay, I have to stop because an intelligent debate isn't happening and I have a life to get back to.
Posted by: blai | Jul 25, 2021 4:18:34 PM
I agree with you Mark. Apple has a great OS which I would gladly use.... if they didn't charge double on their hardware.
As for my remark to Ann, I was merely saying that setting a price point at $1000 or above as "the premium market" and then combining that with Apple owning 91% of the market at or above this price is misleading. Most pre-built Windows desktops that are sold in stores are at $999 or below which obviously means that 1$ difference could very well skew the results. As well, people in the so-called "premium market" usually build their computers at those prices which further misleads the general populations.
Clearly, Windows has numerous issues with their OS but I'd rather pay less for hardware while learning how to deal with OS problems than paying more to not learn how to problem solve.
Posted by: cleebie | Jul 25, 2021 5:26:08 PM
@ Ann: Both Apple aand Microsoft only design's Operating systems, Microsoft or Apple do not design any hardware. which was the point I was trying to make.
Posted by: J.S | Jul 26, 2021 3:43:43 PM
Yes, their days are numbered, but this can be said about everyone and everything.
Posted by: Mike | Jul 26, 2021 6:16:36 PM
I'm sure an analysis of electronic sales would reveal a drop for most products in the last year - it's been a pretty huge economic crisis, especially in the States. None of this data is Earth shattering. The iphone may be taking away some sales from the ipod but the ipod's not going anyway anytime soon. Iphones are still more costly and the charges for running an iphone's features are pretty steap for most people. I have a 30 GB ipod and just ordered a 120 gb ipod because I'm running out of room. Until iphones are equally large in storage and cost less to buy and operate, ipods will be sticking around, especially the shuffle and nano for the younger crowd (cost wise that is).
Posted by: DrVex007 | Jul 26, 2021 11:56:21 PM
Death of the iPod?? Yet it is true that many people are upgrading to the iPhone, so Apple was stupid for canniblizing their own product right? Or did they see that it only made sense to combine a cell phoen with an iPod before someone else did it first. Yes there were MP3 phones, but no one wanted them anyway. Okay now for the virus arguement regarding Macs. The viruses are rare for Macs, but not because of their market share. Virus programmers are an egotistical bunch and all of the talk for years now was regarding Macs being bulletproof. Don't you think that that is enough of a challenge to get one of them to write some viruses? Of course they have, but Macs are just so much stronger than a PC. Windows has been and always shall be garbage, and I am a PC user. It isn't just the viruses, it is the constant conflictions and how everything just doesn't work right on a PC.
My next PC is going to be a MAC and likely a desktop because I just do not need a portable Mac. Buy a netbook and when you get home, let it talk to your Mac.
Go iPhone, Go iPod and Go Mac. These devices are revolutionary for a reason. Apple doesn;t bump the market, it changes the world.
But as my friend put it to me. I will always buy a PC because I don't like to pay for software. I would rather buy software that works properly, than pirate the best PC software that sucks anyway.
Posted by: Jdpraise | Jul 31, 2021 6:58:22 PM
Well, the article that this is based on is a farce. It does not include direct mail computers, that would mean Dell, Lenove and to some extent HP. Its also based on averages.. So if as a computer manufacturer I sold 10 premium priced computers to Apple's 10 and I also sold 25 net books my average price no longer sits within the premium price position when the average is used..
The article is misleading and several people (Ann) while intelligent seem very uninformed. If people haven't caught on yet, all media is skewed. You need to dig a little deeper if you want the truth.