iTunes a quarter of music sales; Apple a third of Wi-Fi use

Posted:
in General Discussion edited January 2014
Two studies released Tuesday show Apple's growing share of separate markets, with iTunes capturing 25 percent of all retail music sales, and Apple products representing 32 percent of Wi-Fi use.



Meraki Wi-Fi study



The first-ever census from network equipment manufacturer Meraki shows Apple's massive growth in the wireless device market. In the past year, the use of Apple devices on the company's networks has had a 221 percent increase, bolstered by new Wi-Fi devices like the iPod touch and iPhone.



While Apple held just 14 percent of the market share a year ago, the 2009 numbers show the hardware maker with 32 percent of the Wi-Fi capable devices observed. That success is undoubtedly driven by the popularity of the iPhone, which has been said to control most of the market for mobile Web use.



Year over year, the total number of Wi-Fi capable devices accessed grew significantly as well. In 2008, 149,687 total devices were seen, while a year later there were 41 percent more, hitting 211,190.



Compared to a year prior, the share of Intel devices dipped from 24 percent to 19 percent. Other hardware makers, too, lost share to Apple, with all other devices dropping from 62 percent to 49 percent. But Apple handset competitors Research in Motion and Nokia also saw their market share expand during the same frame. The BlackBerry maker controlled 8 percent of the Wi-Fi market in 2009, and Nokia took 2 percent.



"The growth in devices overall is impressive, but the growth for Apple, Nokia and RIM devices is stunning," said Sanjit Biswas, CEO and co-founder of Meraki. "It paints a vivid picture about how people now access the Internet, and the trends we can expect for years to come."







NPD: iTunes a quarter of U.S. music sales



New sales data from The NPD Group shows that Apple's iTunes has a 25 percent market share of U.S. music sales. That's well ahead of the number two overall seller of music, Walmart, which has 14 percent.



In all, online digital downloads make up 35 percent of music sales. In that category alone, iTunes is the undisputed leader, representing 69 percent of the market. The next closest seller is Amazon, which sells 8 percent of all paid downloads.



It's been a short road to the top for Apple, which just entered the top 10 music sellers in late 2005. In 2008, iTunes took the top spot, ousting Walmart.



CDs still take the lion's share, with 65 percent of overall sales. In that category, Walmart is the leader, selling 20 percent of the physical medium, followed by Best Buy (16 percent), Target (10 percent), and Amazon (10 percent).



"The growth of legal digital music downloads, and Apple's success in holding that market, has increased iTunes's overall strength in the retail music category," said Russ Crupnick, entertainment industry analyst for The NPD Group. "But the importance of the big box retailers shouldn't be dismissed, as long as the majority of music consumers continue to buy CDs."
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Comments

  • Reply 1 of 41
    Good for Apple. I love seeing Walmart get pummeled.
  • Reply 2 of 41
    MacProMacPro Posts: 18,161member
    This doesn't seem to show the massive sales by RIM is to users that actually access the net from their smart phones via wi-fi ... or am I misinterpreting the data?
  • Reply 3 of 41
    al_bundyal_bundy Posts: 1,525member
    Quote:
    Originally Posted by digitalclips View Post


    This doesn't seem to show the massive sales by RIM is to users that actually access the net from their smart phones via wi-fi ... or am I misinterpreting the data?



    RIM gained market share probably because more of their phones now have wifi as they are expanding out from their core business market
  • Reply 4 of 41
    roos24roos24 Posts: 170member
    I am not sure how to read the graph. Macs are Intel based, where do they fit in? Or are these not considered to be wireless devices?
  • Reply 5 of 41
    teckstudteckstud Posts: 6,476member
    I wonder how much of that percentage is iPhone/iTouch users?
  • Reply 6 of 41
    teckstudteckstud Posts: 6,476member
    So much for CDs becoming extinct. Who would have thought they would still hold 65 % at mid 2009?
  • Reply 7 of 41
    galleygalley Posts: 971member
    You crazy kids and your "digital downloads".
  • Reply 8 of 41
    jazzgurujazzguru Posts: 6,435member
    Quote:
    Originally Posted by teckstud View Post


    So much for CDs becoming extinct. Who would have thought they would still hold 65 % at mid 2009?



    I personally still prefer CDs to downloads. I like to have a tangible "original" copy.
  • Reply 9 of 41
    tenobelltenobell Posts: 7,014member
    Who has ever said no one would use CD's by 2009?



    Digital download sales are projected to over take CD sales next year. CD's have such a large installed base they are expected to continue to be in use for many years.



    Quote:
    Originally Posted by teckstud View Post


    So much for CDs becoming extinct. Who would have thought they would still hold 65 % at mid 2009?



  • Reply 10 of 41
    rokkenrokken Posts: 236member
    I don't know how much of a CD costs in the U.S, but here in Norway, a CD album is more than twice as expensive as the same album sold in iTunes store ( usually 199 kr vs 80 kr) so I expect iTunes store taking a larger portion here.
  • Reply 11 of 41
    jazzgurujazzguru Posts: 6,435member
    Quote:
    Originally Posted by Rokken View Post


    I don't know how much of a CD costs in the U.S, but here in Norway, a CD album is more than twice as expensive as the same album sold in iTunes store ( usually 199 kr vs 80 kr) so I expect iTunes store taking a larger portion here.



    I usually go to places that sell used CDs and get them for considerably less than they would cost brand new.
  • Reply 12 of 41
    Quote:
    Originally Posted by Rokken View Post


    I don't know how much of a CD costs in the U.S, but here in Norway, a CD album is more than twice as expensive as the same album sold in iTunes store ( usually 199 kr vs 80 kr) so I expect iTunes store taking a larger portion here.



    Depending where you look, often iTunes is cheaper in Canada: 10 CND instead of 15 (for new releases)
  • Reply 13 of 41
    jeffdmjeffdm Posts: 12,946member
    Quote:
    Originally Posted by Roos24 View Post


    I am not sure how to read the graph. Macs are Intel based, where do they fit in? Or are these not considered to be wireless devices?



    I think they mean using the Intel wireless chips. Apple doesn't use them at all that I recall, I remember seeing Broadcom, Aetheros (sp?) and other names instead. 10% is still a surprisingly low number, I expected that most computers would have Intel wireless chips in them. But then, I've never heard of this wireless manufacturer, Meraki. It's interesting information, I don't know if I would put weight behind it until I hear of thoughrough third party examination of the data and report.



    Quote:
    Originally Posted by TenoBell View Post


    Who has ever said no one would use CD's by 2009?



    Digital download sales are projected to over take CD sales next year. CD's have such a large installed base they are expected to continue to be in use for many years.



    I don't think anyone said that no one said no one would use CDs by now, but there is a major difference between no one and 65%. As you said, there will be holdouts for a long time, but I think a lot of people expected downloads to outsell optical media like two years ago already.
  • Reply 14 of 41
    Quote:
    Originally Posted by Roos24 View Post


    I am not sure how to read the graph. Macs are Intel based, where do they fit in? Or are these not considered to be wireless devices?



    Quote:
    Originally Posted by Meraki Press Release


    The number of client devices, such as laptops and handheld devices, observed by the same set of Meraki access points grew dramatically by 41% from 149,687 devices in 2008 to 211,190 in 2009. The number of Apple devices observed, including laptops, iPhones and iPods, grew by an impressive 221%. Apple devices now represent 32% of all the devices seen by this set of Meraki networks in North America, compared to just 14% in 2008.



    The stats include iPhones, iPods and MacBooks.
  • Reply 15 of 41
    rokkenrokken Posts: 236member
    Quote:
    Originally Posted by joelsalt View Post


    Depending where you look, often iTunes is cheaper in Canada: 10 CND instead of 15 (for new releases)



    The difference is rather minimal in North America compared to what we have and that's why I really hope Apple will bring movie rentals and TV shows to here.
  • Reply 16 of 41
    tenobelltenobell Posts: 7,014member
    That can also depend on how you are looking at the numbers. Music sales are plummeting in general.



    What is really happening is that CD sales are falling faster than digital downloads are growing. CD sales will fall past digital download sales. but digital downloads are not really making up for the loss.





    Quote:
    Originally Posted by JeffDM View Post


    I don't think anyone said that no one said no one would use CDs by now, but there is a major difference between no one and 65%. As you said, there will be holdouts for a long time, but I think a lot of people expected downloads to outsell optical media like two years ago already.



  • Reply 17 of 41
    boogabooga Posts: 1,077member
    Quote:
    Originally Posted by jazzguru View Post


    I personally still prefer CDs to downloads. I like to have a tangible "original" copy.



    I'm the opposite. I keep CDs around as a backup, but will probably be dumping them in a landfill soon (there's no legal way to resell them considering I want to keep the electronic copy). I wish there was a viable way for me to do the same with my DVDs.
  • Reply 18 of 41
    jazzgurujazzguru Posts: 6,435member
    Quote:
    Originally Posted by Booga View Post


    I'm the opposite. I keep CDs around as a backup, but will probably be dumping them in a landfill soon (there's no legal way to resell them considering I want to keep the electronic copy). I wish there was a viable way for me to do the same with my DVDs.



    Oh I have all my albums saved on my archaic MP3 player - a 30 GB Creative Nomad Jukebox Zen Xtra (which is essentially a laptop hard drive in a stainless steel case with a cheap LCD display and proprietary firmware).



    But I take comfort in knowing that if my MP3 player goes kablooie or gets lost/stolen, I still have tangible copies of all my tunes. And there are times when I like to listen to my music in CD quality. I notice a difference.
  • Reply 19 of 41
    Quote:
    Originally Posted by Booga View Post


    I wish there was a viable way for me to do the same with my DVDs.



    Viable, yes. Legal, questionable. I back up my personal DVDs with Handbrake.
  • Reply 20 of 41
    al_bundyal_bundy Posts: 1,525member
    Quote:
    Originally Posted by Rokken View Post


    I don't know how much of a CD costs in the U.S, but here in Norway, a CD album is more than twice as expensive as the same album sold in iTunes store ( usually 199 kr vs 80 kr) so I expect iTunes store taking a larger portion here.



    you can get CD's for as low as $10 on amazon. new release stuff too, not ancient catalog CD's.
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