Is an iPod slump on the way?
p2pnet.net News:- With the mainstream media continuing to hype the wonders of iPod, it seems the company is nonetheless gently readying itself to see sales drop off at Apple stores around the world, implying in that event, Mac could take up the slack.
Speaking at the Goldman Sachs Technology Investment Symposium, recently, Apple cfo Peter Oppenheime said the Apple retail segment has seen a steady 25% growth and that Apple is "very happy" with its sales of Macs at these stores, says a Macworld story, going on:
"Accordingly, the company doesn’t feel it will have overextended its reach if iPod sales at the stores suddenly drop off."
The iPod’s "Halo" effect was another topic.
This is not, of course, an award it’s received for being a good cyber-citizen. With its propensity to sue supporters and its involvement with the RIAA during a marketing campaign, it certainly isn’t that.
It is, however, an example of what can be achieved through clever PR, media handling and marketing, backed by having the right product at the right time.
Will the sales of iPods to Windows PC eventually translate into increased Mac sales? “Although Apple’s marketshare hasn’t moved significantly yet, Oppenheimer said there is anecdotal evidence to suggest that things are moving in that direction, including a steady stream (in the range of low to mid 40 percent) of first-time Mac buyers at the Apple retail stores and increased uptake of iBook and PowerBook systems by high school and college students who have already bought iPods – an assertion supported by college student market research firm Student Monitor, continues Macworld.
On the iPod, cell phones and satellite radio, the company now sells iPod hardware in prices ranging from $99 to $449, the exception of the 60GB iPod photo, which is $100 more than its 30GB sibling, says the story. With pricing so close , might some models “cannibalize sales of others”? – asks Macworld. Oppenheimer said the company is taking a wait-and-see approach. As to Apple’s deal with Motorola to develop an "iTunes mobile music player" for cell phones, it’s still hedging its bet on the iPod, states the report, quoting Oppenheimer as saying his company hasn’t seen much customer demand for iPod integration with satellite radio.
Asked about lower iPod margins, Oppenheimer said the drop, last year, from 27 to about 20% was down to increased production of the iPod mini, its own price cuts,and an increase in its production of iPods sold to Hewlett-Packard. "Oppenheimer noted that margins on the iPod shuffle are "below the aggregate" of the margin for Apple’s hard drive-based players," says Macworld.. "That contradicts a recent IDC report that suggested Apple’s margin on the iPod shuffle is 35 to 40 percent."
February 27th, 2005 at 6:42 pm
This doesn’t make sense. These so called analyst are saying that because of other factors such as the Ipod mini, its own price cuts and increase production of iPods from Hewlettt Packard. If so, then its should not be construed as a slump. Ipod is an Ipod whether its sold by Hewlett Parkard or its an Ipod Mini. The article does not make sense at all.
February 27th, 2005 at 7:57 pm
Agreed, it’s fundamentally contradictory.
February 27th, 2005 at 10:48 pm
the answer to the question is no, there wont be an iPod slump anytime in ‘05. The mini now gets around 20 hrs. battery life vs. dell pocket dj at 10 hrs and the zen micro at 12. As for the article, it looks like just another media bash job by someone who doesn’t write well.
February 27th, 2005 at 11:13 pm
Very poorly written article. The quote from another article, not a direct quote from apple was:” Retail opportunities. Oppenheimer said that Apple should exit its fiscal year with approximately 125 retail stores open around the world. Apple retail segment has seen 25 percent growth year over year, and Oppenheimer said that Apple is “very happy” with its sales of Macs at these stores. Accordingly, the company doesn’t feel it will have overextended its reach if iPod sales at the stores suddenly drop off.”
The jist is whether or not Apple was putting in too many stores, not the cfo barking about iPod sales slumping. This is shoddy journalism at best, and personal vendetta at worst.