Fifth-generation iPod sales strong, outselling nano at some stores?
Sales of Apple Computer's new fifth-generation video iPod are coming in ahead of expectations, and in some cases appear to be outselling the very popular iPod nano, says one Wall Street analyst.
In a research note released to clients on Thursday, American Technology Research analyst Shaw Wu said recent proprietary checks with industry and channel sources show sales of the video iPod to be stronger than expected.
"In some cases, in Apple's own channels, including its physical stores and online store, we believe video iPods are surprisingly outselling even the very popular iPod nano," the analyst wrote. "We believe video iPod buyers are mostly installed base users attracted to its high storage capacity, video capability, and reasonable price points, while nanos are attracting more mainstream MP3 users.
On the other hand, Wu acknowledged that this trend is not true for all of Apple's distribution channels, like Amazon.com and Best Buy, where iPod nanos remain the best seller. "We nevertheless view this trend as favorable for revenue and operating income as video iPods have higher ASPs (average selling price) and operating expenses similar to the nano," he added.
For Apple's December quarter, AmTech Research is raising its estimates to 4.8 billion in revenue and 52 cents in earnings per share (EPS), which is up from $4.7 billion and 49 cents per share.
The firm made no changes to its iPod unit forecast for the quarter, which remains at 9.4 million units, but continues to rate Apple a 'Buy' with a new price target of $66.
In a research note released to clients on Thursday, American Technology Research analyst Shaw Wu said recent proprietary checks with industry and channel sources show sales of the video iPod to be stronger than expected.
"In some cases, in Apple's own channels, including its physical stores and online store, we believe video iPods are surprisingly outselling even the very popular iPod nano," the analyst wrote. "We believe video iPod buyers are mostly installed base users attracted to its high storage capacity, video capability, and reasonable price points, while nanos are attracting more mainstream MP3 users.
On the other hand, Wu acknowledged that this trend is not true for all of Apple's distribution channels, like Amazon.com and Best Buy, where iPod nanos remain the best seller. "We nevertheless view this trend as favorable for revenue and operating income as video iPods have higher ASPs (average selling price) and operating expenses similar to the nano," he added.
For Apple's December quarter, AmTech Research is raising its estimates to 4.8 billion in revenue and 52 cents in earnings per share (EPS), which is up from $4.7 billion and 49 cents per share.
The firm made no changes to its iPod unit forecast for the quarter, which remains at 9.4 million units, but continues to rate Apple a 'Buy' with a new price target of $66.
Comments
New player buyers vs. upgraders. Low cost vs. high. Low capacity vs. high. Amazon vs. Apple Stores.
Originally posted by nagromme
Makes sense that the two models would be going to two different groups of people.
New player buyers vs. upgraders. Low cost vs. high. Low capacity vs. high. Amazon vs. Apple Stores.
Amazingly small vs. Amazingly smaller
Originally posted by AppleInsider
The firm made no changes to its iPod unit for cast for the quarter, which remains at 9.4 million units, but continues to rate Apple a 'Buy' with a new price target of $66.
[ View this article at AppleInsider.com ]
Oh my. It's "forecast" not "for cast"
Originally posted by DeaPeaJay
Oh my. It's "forecast" not "for cast"
OK who stole his "e". Fess up...
e
I'm sorry. I'll go to my room and think about what I've done.
Originally posted by fahlman
Here it is.
e
I'm sorry. I'll go to my room and think about what I've done.
Nobody warn you about the dangers of drugs? Taking e is illegal as well, and it's a slippery slope.
I've been mostly listening to podcasts since January, and I don't need to have much of my song library, I just rotate through both over time, and wanted the very compact size and very light weight to save pocket space. The fact that it has a reasonably large capacity yet based on solid state storage is a plus for reliability.
Video is nifty, but I don't really have much time away from home where I can sit down and watch something.
I think it also makes sense that the slightly newer player might edge out the one that's been out for a month, the initial peak demand for nano might be down a bit and now we have the initial peak demand for the 5G just starting up.
Just saw this in my mail.
It will help Apple continue its iPod and music sales.
http://www.forbes.com/feeds/ap/2005/...ap2315440.html
1GB shuffle: $129/MB
2GB nano: $100/GB
4GB nano: $62/GB
30GB iPod: $10/GB
60GB iPod: $7/GB
The nano is around 10 times more expensive for the storage than the regular ipod. If you don't have that much music, then it's fine. But if storage is important to you, the iPod is so much of a better deal.
Originally posted by BRussell
The nano is around 10 times more expensive for the storage than the regular ipod. If you don't have that much music, then it's fine. But if storage is important to you, the iPod is so much of a better deal.
It's not necessarily about "not having that much music". My audio library is 25GB yet I own a nano. I don't need to have all of my audio with me at any given point in time. As it is, nano can hold as much 10x as much audio as it can play on a charge, and the files on it can be changed while charging.
Even though it is among the smallest device in its class, the standard iPod is still pretty large and heavy, not to mention using mechanical storage. 2GB and 4GB is plenty and large fragments of a much larger audio library can be rotated to the device with ease simply by changing the synch settings between any one of multiple playlists. There are other simple means of changing what is on the device as well.
Originally posted by JeffDM
It's not necessarily about "not having that much music". My audio library is 25GB yet I own a nano. I don't need to have all of my audio with me at any given point in time. As it is, nano can hold as much 10x as much audio as it can play on a charge, and the files on it can be changed while charging.
Even though it is among the smallest device in its class, the standard iPod is still pretty large and heavy, not to mention using mechanical storage. 2GB and 4GB is plenty and large fragments of a much larger audio library can be rotated to the device with ease simply by changing the synch settings between any one of multiple playlists. There are other simple means of changing what is on the device as well.
So, apparently you are not one of those nutcases like me, who say, 'Why do I want to (carry all my music with me)? Because I can'.
Originally posted by noirdesir
So, apparently you are not one of those nutcases like me, who say, 'Why do I want to (carry all my music with me)? Because I can'.
I don't think that position is necessarily crazy, just that there are other considerations as well. I want the full size iPod for that reason, and I want it for video capabilities too, but I'm pretty sure I won't use it enough.
Originally posted by JeffDM
It's not necessarily about "not having that much music".
No, I get ya. What I was thinking of was a survey I read that said most people only have a few hundred MB of music on their computers. Most of us here on AI probably have a lot more than that, but most normal people probably don't need the multi-gigabyte hard drive iPods.
Originally posted by BRussell
a survey I read that said most people only have a few hundred MB of music on their computers. Most of us here on AI probably have a lot more than that, but most normal people probably don't need the multi-gigabyte hard drive iPods.
My iTunes collection weighs in at just a sliver under 100gb, so it was the Nano for me! My first iPod of any kind ... the physical size of the thing just rocked me, though I kind of distract from the look with a big pair of Sony cans plugged into it with a connector rivalling the size of the player!
If I want to watch videos, I whip out my PowerBook.
Solid state storage is too neat by the way. When are the iBooks/PowerBooks moving on to it?
Originally posted by fuyutsuki
My iTunes collection weighs in at just a sliver under 100gb, so it was the Nano for me! My first iPod of any kind ... the physical size of the thing just rocked me, though I kind of distract from the look with a big pair of Sony cans plugged into it with a connector rivalling the size of the player!
If I want to watch videos, I whip out my PowerBook.
Solid state storage is too neat by the way. When are the iBooks/PowerBooks moving on to it?
When the price drops to about 20% of what it is now per GB, and the capacity goes up to at least 60GB.
The 5G must be selling well, even my wife is thinking of getting one, and if you knew my wife, you would know how big a thing that is!
Just saw this in my mail. It will help Apple continue its iPod and music sales.
http://www.forbes.com/feeds/ap/2005/...ap2315440.html
heh. mel, don't forget video sales