Comments on: Apple's incredible shrinking iPod

By: Philip, Belfast, Northern Ireland

Philip, Belfast, Northern Ireland — Sat, 01 Nov 2008 21:21:28 +0000

Has anyone tried to work out through the increase of revenue the approximation of numbers of iPod Touches sold per quarter, especially since Apple never give those details out?

By: G, the netherlands

G, the netherlands — Thu, 30 Oct 2008 14:55:49 +0000

Well said Garrett, you gave the nail in the head. This is what EVERY greedy bussines man does EVERYWHERE. They live by the numbers and the worst of it is that the make everybody else's life go round the numbers as well. This is the world we live in. This is why we have this huge global economic situation. Because a bunch of greedy guys are scared about losing 1 cent more.

By: Krishna, Banhgalore, karnataka

Krishna, Banhgalore, karnataka — Wed, 29 Oct 2008 11:30:49 +0000

Hi All,

Went through the article as well as the comments. I feel the iPod is still one of the hottest selling Apple product. But the difference in the share of revenue it has might be low as the price of an average iPod keeps decreasing from one quarter to quarter. Eg: last quarter Apple sold 1million iPods at say $35, and this quarter the price has come down to $25 and had sales of a little higher than 1.5million. But the total share of revenue will definitely be less due to the price reduction and that doesn't mean the demand for iPods have come down.

By: Seb, Fairbanks, Alaska

Seb, Fairbanks, Alaska — Tue, 28 Oct 2008 21:31:24 +0000

The maths:

iPod = 55% of revenue in 2006 (doesn't say which Quarter so we'll have to assume each quarter).

Take Q4 2006:

$4,837m x 55.6% = $2,689m

Now Q4 2008:

$11,682m x 14.2% = $822m

That's quite a drop for the pure mp3 player. Looks like the future is mobile phones that play music.

[ex ped: Not sure about your maths. Here's what I've got, direct from Gene Munster's spreadsheets:

iPod sales q4 2006: $1,559 million (8,729 million units)

iPod sales q4 2008: $1,660 million (11,052 million units)

In other words, iPod revenue is basically flat; although sales are up, ASP is down. Meanwhile, Apple's total revenue has grown sharply, thanks to the Mac and the iPhone.]

By: Michael, Washington, DC

Michael, Washington, DC — Tue, 28 Oct 2008 12:54:13 +0000

Garrett W -

If you are so smart, you'd calm down. This is business – just an analysis of sales. Don't turn it into a middle school drama.

By: Mark. Portsmouth UK

Mark. Portsmouth UK — Tue, 28 Oct 2008 10:00:49 +0000

Forget the Apple name. We have a company that have just had an astronomic gain in market share and profit with an admirable cash mountain during a time of economic crisis. It has a number of product lines, all growing in sales and market share. One line is reaching maturity and not growing as fast as it was, and it now has a new line which has proved more popular than anyone predicted. And the share value drops faster than Ford and GM -who are losing $1bn a month.

Daft

By: Garrett W., Las Vegas Nevada

Garrett W., Las Vegas Nevada — Tue, 28 Oct 2008 06:35:53 +0000

I'm sick of people bashing Apple. If the bashers are so G*d D*#n smart, why don't they come out with the iPod or iPhone killer? In other words invent something that changes the way we listen to music now or come up with their next generation "iPhone" that's better. Then have the balls to sit on as much cash as Apple has for R&D and help a company make it through the mess the wall street has created for itself. Did I mention that Wall Street is the bashers?

My suggestion to Steve Jobs….. Split the stock to put main stream private investors in your corner and quit trying to please wall street. Your fan base of consumers is growing and we are loyal.

You could not give me anything but Apple Products!

By: Rob, Sydney, Australia

Rob, Sydney, Australia — Tue, 28 Oct 2008 00:54:07 +0000

"Unless Apple finds some way to make the iPod stand out amongst all the other MP3 players out there this source of revenue will just grow smaller. "

Jason,

iPods don't stand out from the vast majority of MP3 players, because the vast majority are iPods. As a source of revenue it is growing but as a reported source of revenue it is growing relatively slower than iphone as Iphone is new and its accounting treatment is different.

"A good idea for this would be allow iPod users to ditch the bloat called iTunes and sync with whatever program they would like."

The vast majority of users prefer itunes & ipods integration to other products.

Anyway Jason, I hope that your Zune works for you.

By: judas, Phoenix Arizona

judas, Phoenix Arizona — Tue, 28 Oct 2008 00:06:34 +0000

During the original release of the iPhone Apple called it their best iPod ever…

By: Ken C, Gardiner, Maine

Ken C, Gardiner, Maine — Mon, 27 Oct 2008 23:55:43 +0000

Uhm, iPhones ARE iPods. When Steve Jobs announced the iPhone back at MWSF07, he specifically stated that the iPhone was also the very best iPod. And, guess what, when I bought my iPhone, it was a choice between that and the iPod Touch, so it very clearly is a choice.

Interestingly, Zaky's non-GAAP numbers almost match my own that I calculated on the back of an envelope, back in April, when there was alot less info to work from. I was stressing that Wall Street was missing out on Apple's deferred revenues. I posted then that Xmas last year was $10.5B non-GAAP and not $9.6B, and $8B in the following quarter, not $7.5B. In each case, Zaky differs from my own estimate by $0.1B. Not bad for an envelope calculation.

If you want to read what I wrote on this topic in April, you only need go to Macdailynews' Opinion page. It's been sitting there since April.