iPod Troubles

An analyst tells Barron’s that, based on some proprietary web-scraped data, iPod sales in the second quarter are looking like they’ll come in well below Street expectations:

Speaking of consumer devices, you’ve also done work on Apple’s iPod. What are you finding?

In the first quarter and continuing in the second quarter, we saw a pretty significant downturn in interest in the MP3 category as a whole, as well as in the iPod. iPod sales are tracking around 7.3 million for the quarter while the Street is expecting closer to 8.5 million.


  1. I wonder how this trend corresponds with consumer electronic purchases during this period. I suspect that despite slow iPod sales Apple should have no problem exceeding analyst estimates given projections regarding Macbook adoption rates.

  2. It’s been a while since the last release of new iPod models. Perhaps people are anticipating new iPods, and so are delaying their purchases.

  3. It’s amazing how Apple has been able to hold the pricing on iPods. The Nano is selling for the same price it was 9 months ago… how many other companies have that kind of pricing power? Jon is right though, at this point in the Nano cycle, I can see a lot of people holding off.

  4. Anyone really think Apple is going to dominate the digital content revolution? I mean it’s a freakin MP3 player. It’s the first wave of massive innovation in the digital content revolution. People will look back on this day-likely in the not too distant future-and chuckle that such a rudimentary device was the marvel of consumer technology and the ultimate in hip. (Btw, I love the Apple experience so don’t get me wrong.)
    Apple’s days are numbered. They are too small and too niche to dominate the content space the way they have in the first wave. They could be a player but nothing like today.