Apple retains +70% of MP3 player share, 50% of iPod buyers new
Apple announced a year over year decline in its sales of 10.2 million iPods, but noted that the company continues to maintain a greater than 70% share of the MP3 player market. It also stated that 50% of its traditional MP3 player buyers are new to the iPod.
Ever since the iPod's runaway success earlier this decade helped Apple to turn itself around and launch its successful retail efforts, iPod sales have defined the company's success. Now however, the iPod segment which Apple refers to internally as its 'traditional MP3 players,' including the iPod shuffle, nano, and classic, is seeing a decline that has made the iPhone and Mac segments bigger earners in comparison.
Apple is even promoting the shift, making entry level iPhones a tempting alternative for new iPod buyers and positioning the iPhone-derived iPod touch as a high end alternative. Despite the global economy, sales of the pricier iPod touch are up 130% year over year, indicating Apple isn't at all stuck with a star product that has nowhere to go.
Even so, Apple isn't giving up its lead in the traditional MP3 player market. Despite experiencing less growth than in previous years, the company is holding on to its majority market share in MP3 players and is "gaining share in every country" outside the US as well.
Assisting the company's strength in music players is the phenomenal success of iTunes, which Apple just announced has passed the 8 billion milestone in song downloads. The popularity of iTunes attracts new users to the iPod, creating a situation where half of new iPod buyers are new customers, not just previous buyers upgrading to the latest model.
"Despite the decline in our sales, our research shows that about 50 percent of our recent traditional iPod purchasers are buying their first iPod," Apple stated in its earnings conference call.
Ever since the iPod's runaway success earlier this decade helped Apple to turn itself around and launch its successful retail efforts, iPod sales have defined the company's success. Now however, the iPod segment which Apple refers to internally as its 'traditional MP3 players,' including the iPod shuffle, nano, and classic, is seeing a decline that has made the iPhone and Mac segments bigger earners in comparison.
Apple is even promoting the shift, making entry level iPhones a tempting alternative for new iPod buyers and positioning the iPhone-derived iPod touch as a high end alternative. Despite the global economy, sales of the pricier iPod touch are up 130% year over year, indicating Apple isn't at all stuck with a star product that has nowhere to go.
Even so, Apple isn't giving up its lead in the traditional MP3 player market. Despite experiencing less growth than in previous years, the company is holding on to its majority market share in MP3 players and is "gaining share in every country" outside the US as well.
Assisting the company's strength in music players is the phenomenal success of iTunes, which Apple just announced has passed the 8 billion milestone in song downloads. The popularity of iTunes attracts new users to the iPod, creating a situation where half of new iPod buyers are new customers, not just previous buyers upgrading to the latest model.
"Despite the decline in our sales, our research shows that about 50 percent of our recent traditional iPod purchasers are buying their first iPod," Apple stated in its earnings conference call.
Comments
Interesting. Schiller announced they have just crossed the 6 billion song line on 6th of January 2009 during Macworld. Two billion songs in 6 months? Boom?
5 Billion song on 19 June, so that only 1 billion in 6 months.
Still a big boom though.
In order to start another upgrade cycle and bring new users, Apple needs to add more features... not another minimal iPod Shuffle. We got to have value... so I can ditch the regular digital camera, camcorder, GPS, etc. Most important, I do not want to get tied to a telco like ATT. I got WiFi at home, work and other places where I hang out.
ATT would get pissed... but Apple should NOT limit itself. The company got to add compelling reasons for folks to upgrade or even new customers.
5 Billion song on 19 June, so that only 1 billion in 6 months.
Still a big boom though.
Those Michael Jackson songs are selling like hotcakes!
The iPod Touch needs to have hi quality camera that has zoom and hi resolution CCD with flash... good for hi quality photos and video. Yes, it will make the iPod thicker like the iPhone, but the extra thickness can be used to pack more battery and memory, microphone for VoIP and front camera. Add a robust GPS capability. WiFi-N. Text message capability.
In order to start another upgrade cycle and bring new users, Apple needs to add more features... not another minimal iPod Shuffle. We got to have value... so I can ditch the regular digital camera, camcorder, GPS, etc. Most important, I do not want to get tied to a telco like ATT. I got WiFi at home, work and other places where I hang out.
ATT would get pissed... but Apple should NOT limit itself. The company got to add compelling reasons for folks to upgrade or even new customers.
Agreed .
In fact all the models should have some ipodtouch tech inside of it
I would even suggest making the 120g classic with a full touch screem on the back of it I would call it the classic ipod-touch .
The iPod Touch needs to have hi quality camera that has zoom and hi resolution CCD with flash... good for hi quality photos and video. Yes, it will make the iPod thicker like the iPhone, but the extra thickness can be used to pack more battery and memory, microphone for VoIP and front camera. Add a robust GPS capability. WiFi-N. Text message capability.
In order to start another upgrade cycle and bring new users, Apple needs to add more features... not another minimal iPod Shuffle. We got to have value... so I can ditch the regular digital camera, camcorder, GPS, etc. Most important, I do not want to get tied to a telco like ATT. I got WiFi at home, work and other places where I hang out.
ATT would get pissed... but Apple should NOT limit itself. The company got to add compelling reasons for folks to upgrade or even new customers.
Why should Apple add features now that can be postponed for future model releases? As long as a product sells well with great profit margins, Apple would be foolish to add features even though sales and profits keep humming along. Ultimately, your wishes will come true but you have to be patient. Naturally, by that time, you will ask for new features that are the rage then...
The iPod Touch needs to have hi quality camera that has zoom and hi resolution CCD with flash... good for hi quality photos and video. Yes, it will make the iPod thicker like the iPhone, but the extra thickness can be used to pack more battery and memory, microphone for VoIP and front camera. Add a robust GPS capability. WiFi-N. Text message capability.
In order to start another upgrade cycle and bring new users, Apple needs to add more features... not another minimal iPod Shuffle. We got to have value... so I can ditch the regular digital camera, camcorder, GPS, etc. Most important, I do not want to get tied to a telco like ATT. I got WiFi at home, work and other places where I hang out.
ATT would get pissed... but Apple should NOT limit itself. The company got to add compelling reasons for folks to upgrade or even new customers.
high quality zooming camera? for what? i bought an ipod touch, not a camera phone. i don't want to get rid of my cheaper, higher quality camera. if you have an ipod touch, it's assumed that you are using something else as a phone, so therefore that phone already has your camera.
more battery? not needed if it means more thickness. same battery life as iphone, 20 hours of music, more than enough.
a real GPS unit would suck the battery dry and take up space, the iphone doesn't even use a full GPS unit, but one that depends on cell towers. so in essence the ipod touch would need a full GPS like one in a traditional unit. again people who need gps capability can get that on most phones these days, and with the ipod touch it's assumed again that you still need a separate phone and probably have one.
what use is N wireless? the range is kinda better but on a mobile internet device there's no way you could notice any speed or connection difference. extra chip, extra power usage, but probably it will be easy to add soon.
ipod touches can sent text messages through email. almost all phone carriers can send texts to and from phones to email addresses. once again your logic makes no sense, ANY digital phone can text, and it's again assumed that you have some other phone since you bought the ipod touch.
the only thing apple needs to do to improve their ipod touch/iphone situation is to get rid of the at&t exclusivity. once apple does that basically all of the points you made are worthless and are you being too cheap to get an iphone even though you apparently want all the features of one on your ipod.
Agreed .
In fact all the models should have some ipodtouch tech inside of it
I would even suggest making the 120g classic with a full touch screen on the back of it I would call it the classic ipod-touch .
huh? why would it have a screen on the back and front? why not just a thicker touch with a hard drive?
what use is N wireless? the range is kinda better but on a mobile internet device there's no way you could notice any speed or connection difference. extra chip, extra power usage, but probably it will be easy to add soon.
While I do agree that there would be little speed difference on a mobile device, N wireless would be nice so it can connect to my N network at home without slowing the whole network down.
a real GPS unit would suck the battery dry and take up space, the iphone doesn't even use a full GPS unit, but one that depends on cell towers.
Actually, you're wrong. The iPhone has a full GPS unit. It can also get data over the cell network in order to speed up the GPS location finding ? but it'll still work without any phone signal.
The iPod Touch needs to have hi quality camera that has zoom and hi resolution CCD with flash... good for hi quality photos and video. Yes, it will make the iPod thicker like the iPhone, but the extra thickness can be used to pack more battery and memory, microphone for VoIP and front camera. Add a robust GPS capability. WiFi-N. Text message capability....
....and the kitchen sink.