I liked the article despite the typos. I would have preferred it if the author would have delineated the percentages of revenue coming from all of the Apple products.
The iPod can't and won't die. Such things break and get lost. The technological innovation will continue and more iPods will be sold as long as people listen to music and watch videos on portable devices.
I'm hoping for a smaller iPad or a bigger iPod Touch to come out. I really want such a device with a six or seven inch screen.
As far as TV devices go, the internet is where I watch video shows. Maybe there is a market for TV devices. Right now my computer does everything I need it to do for video content. I don't feel the need for a specialized video device.
If by "iPod era" one means Apple's unhealthy reliance on a single device for its well-being, then, yes, the iPod era is over. Citing a chart of declining iPod revenue *percentage* as a symptom of decline is entirely misleading, though. IPod sales remain quite strong even as Apple's product line has expanded into other mobile devices; indeed, earnings from iPods are increasing as the product mix skews more to the high-end iPod Touch. Given the iPod-like capabilities of other iOS devices, which are sufficient for the music needs of some users, the influence of the iPod ecosystem has actually increased. The author paints Apple's product diversification as a negative, but the evidence is quite the opposite, even within the bounds of the iPod world.
An iPhone won't be a tiny bit more -- especially not after AT&T is through with him. The appropriate recommendation is an iPod Touch: most of the iPhone's goodies without the monthly bill.
I like, "not after AT&T is through with him."
Agreed, owning an iPhone is expensive. But I do like only having one item to carry around. And now the iPhone 4 has a better camera with flash. With the iPhone I don't have to carry a phone, iPod, camera, GPS, Guitar tuner, calculater, video camera, voice recorder, maps, phone book around anymore.
I take your point though, when business is good I don't mind ATT as much, but when it is slow that $120 bill sure comes around quick every month.
I just got an iPhone 4, but it's still more convenient for me to keep an iPod Nano permanently plugged into the car's USB port than to try and listen to music from the phone over Bluetooth.
I have to admit, I just skimmed the article, but it seemed to say at one point the ipod now accounts for around 1 fifth of Apple's revenue, or at least as of holiday sales.
This is rather simplistic thinking, but looking at Apple's product offering category wise, they have:
Laptops
Consumer Desktop
Pro Desktop
iPad
iPhone
iPod
iTV
Software
That is 8 device/product categories, not counting accessories and 3rd party sales.
Of those 8 categories, 1 category represents 1 fifth of revenue. Some how that doesn't seem irrelevant to me.
I just got an iPhone 4, but it's still more convenient for me to keep an iPod Nano permanently plugged into the car's USB port than to try and listen to music from the phone over Bluetooth.
This might be a little off topic but interesting for people discussing the iPod UI in the car. I've been test driving new cars recently, and all have some way to port the iPod to the car's internal stereo with some kind of USB/Aux Jack then the Car's stereo UI takes over.
Honda's USB link
Mini's Proprietary USB link and alternate Aux jack
VW's Aux Jack
Toyota has some kind of Aux jack as well.
Out of all these cars, the VW got it right. The Aux Jack is the best way to control your ipod in the car. By using the ipod itself. None of these other cars got it right. The proprietary UI in most cars is so abysmal that it's just better to control from the ipod. At least Mini offers both the USB option (for $250 more, for a freekin cord) or just the Aux jack.
This is how accountants defraud people. They show charts and graphs based on arbitrary definitions and half-truths to lie without actually lying.
iPhones ARE iPods. iPads are less so, although they do have iPods built in to them.
Considering iPod hardware as a standalone entity is also kind of crazy. The real success was the iPod/iTunes Store ecosystem that really made Apple's solution much more compelling than any of the myriad combinations of me-too hardware and clunky online distribution networks. The iTunes Store is doing brilliantly.
The fact that products that are only iPods are fading is in no way, shape or form that it is dying. It is merely testament that Apple has pushed iPod-related technologies so far that the extended functionality of making phone calls or of being put into a tablet with no moving parts have become the successful children of the venerable device.
Yea. I'm talking about how Apple defines what an iPod is on their income statement. This isn't a bad thing. The iPod's revenue is still very strong, it just doesn't make up quite that big of a portion anymore.
The advent of the iPhone changes the equation entirely: my SO switched from Palm on Verizon to iPhone in Feb when her iPod got wonky. She realized that she could replace her iPod w/ an new one - w/ 2x storage - and get the phone part for free....
I don't predict the end of the non-touch/non-phone iPod quite yet, though: shuffles and nanos and classics are still more compelling for some than the "new iPod + free fone", and this will remain so (though tailing off) for the next 3-5 years.
Like plenty of folx I'm a bit disappointed that iP4 didn't jump to 64/128, but that turns out to be a limitation of the current A4. It will no doubt change soon enough. iP4 will be my first iPhone (and my 3rd & most capacious iPod), and I'll be very surprised if my next has less than 128.
Sir, I must point out the flaw in your argument that the 64/128 is a limitation of the A4 chip. Actually, that is a completely baseless statement.
The truth is, most people would never pay for a 64GB iPhone, let alone a 128GB one. According to http://dramexchange.com/, the flash contract price for 8GB is ~16.20. For 64GB that would be $130 or thereabouts. That's about $65 more than the 32GB just in pure cost. Granted, these quoted prices may be higher but that is just cost to Apple. They cannot sell you that at cost. With margins, that additional 32GB pricing puts things beyond the iPhone's reasonable price range.
This might be a little off topic but interesting for people discussing the iPod UI in the car. I've been test driving new cars recently, and all have some way to port the iPod to the car's internal stereo with some kind of USB/Aux Jack then the Car's stereo UI takes over.
Honda's USB link
Mini's Proprietary USB link and alternate Aux jack
VW's Aux Jack
Toyota has some kind of Aux jack as well.
Out of all these cars, the VW got it right. The Aux Jack is the best way to control your ipod in the car. By using the ipod itself. None of these other cars got it right. The proprietary UI in most cars is so abysmal that it's just better to control from the ipod. At least Mini offers both the USB option (for $250 more, for a freekin cord) or just the Aux jack.
Yeah i agree. My Mazda UI just views all the tracks in Alphabetical order. I can view by artist as well. Sometimes i'm halfway to work by the time i find my mood track. Meanwhile i've mowed down thirteen pedestrians, twenty cats and set off three speeding cameras.
This might be a little off topic but interesting for people discussing the iPod UI in the car. I've been test driving new cars recently, and all have some way to port the iPod to the car's internal stereo with some kind of USB/Aux Jack then the Car's stereo UI takes over.
Honda's USB link
Mini's Proprietary USB link and alternate Aux jack
VW's Aux Jack
Toyota has some kind of Aux jack as well.
Out of all these cars, the VW got it right. The Aux Jack is the best way to control your ipod in the car. By using the ipod itself. None of these other cars got it right. The proprietary UI in most cars is so abysmal that it's just better to control from the ipod. At least Mini offers both the USB option (for $250 more, for a freekin cord) or just the Aux jack.
Continuing to derail the thread a bit. I've developed an almost unhealthy tendency to accumulate music. I have music I don't listen to on a regular basis but love the variety of keeping an ipod full with the entire collection (over 4000) songs and just letting it go on shuffle. It's great to hear the occasional odd tune for the sake of variety. I have an after market JVC car stereo+ ipod controller that works well for playing on shuffle or getting to a particular playlist, genre etc (although drilling down to a particular song takes a lot of effort). It keeps the iPod charged. Getting to the point, if the 64 bit iTouch is attractive enough to me to spring for it, it would be very convenient to leave my iPod classic dedicated to my car. Until now, I always disconnect my iPod, except for spring and fall (mild temperatures). Does anyone have any thoughts about just leaving an iPod in the glove compartment always connected re: hot summer and cold winter temperature extremes?
I would like to point out that I haven't said anything about iPod sales going down. in fact, I make it clear that iPod sales have remained flat to slightly up. The only thing this article is intended to point out, but I guess I didn't do a clear enough job, is that Apple is no longer relying on iPod sales for a main source of revenue. iPod is plainly defined by Apple to include the iPod Classic, iPod Touch, iPod Nano and iPod Shuffle. Everything that has the word iPod in it. I thought this much was obvious.
Again, this article relates an idea that isn't a bad thing for investors. Its a very good thing. So to take this article as being negative would definitely miss the point entirely. The point, once again, is that Apple no longer really relies on the iPod, and its importance as a revenue driver has completely diminish. Again, I'm not saying REVENUE has diminished. This is a positive because it shows Apple's ability to innovate and find other sources of revenue in the face of slower growth. And the iPod has been showing very slow growth between 2006 and 2010.
Remember, that some people will sit here and say that the iPhone is an iPod and that the iPod has done well all along. This argument is in fact, VERY counter productive to investors. You want to see companies come out and innovate and find new sources of revenue. If the iPhone is just another iPod, then guess what, Apple hasn't found a new source of revenue. All they've done is expanded their product line. That isn't nearly as impressive as creating a whole category of revenue by a new and different product. Shit if one considers an iPhone an iPod, then why would one consider an iPad any different? So iPhones, iPads and iPods are all iPods now and Apple has only two sources of revenue? That's not a very good way to look at the company.
The End of the iPod Era is supposed to signify that its reign at the throne of Apple's main source of revenue has ended. Its Era as reigning champion has ended. Who can argue with that when on Apple's income statement its reports $13.5 billion and only $1.5 of that is iPod sales?
Yeah i agree. My Mazda UI just views all the tracks in Alphabetical order. I can view by artist as well. Sometimes i'm halfway to work by the time i find my mood track. Meanwhile i've mowed down thirteen pedestrians, twenty cats and set off three speeding cameras.
I think that's the funniest post i've seen on AI since i joined! Thanks!
Continuing to derail the thread a bit. I've developed an almost unhealthy tendency to accumulate music. I have music I don't listen to on a regular basis but love the variety of keeping an ipod full with the entire collection (over 4000) songs and just letting it go on shuffle. It's great to hear the occasional odd tune for the sake of variety. I have an after market JVC car stereo+ ipod controller that works well for playing on shuffle or getting to a particular playlist, genre etc (although drilling down to a particular song takes a lot of effort). It keeps the iPod charged. Getting to the point, if the 64 bit iTouch is attractive enough to me to spring for it, it would be very convenient to leave my iPod classic dedicated to my car. Until now, I always disconnect my iPod, except for spring and fall (mild temperatures). Does anyone have any thoughts about just leaving an iPod in the glove compartment always connected re: hot summer and cold winter temperature extremes?
.
I can't say i have a solution for you. I use my iPod Classic at work. I listen to a lot of podcasts and, for reason's i've stated above in this post, i take it out all the time. I'm pretty addicted to my Classic. I even have an iHome Shower player that i keep next to the shower on the window sill so i can listen to my classic for the 15 mintues of prepwork in the day. It replaced a radio i kept in there, but that's probably TMI for most.
I generally agree with your point, but I have to ask: Do your figures and charts above include the iPod TOUCH as well as the iPod Classic, Nano and Shuffle?
I ask because I'm pretty sure that the iPod Touch makes up a huge portion of the iOS-based device revenue, and that Touch sales are through the roof.
The article's definition of "iPod" is the same one Apple uses in its quarterly financial reports. That includes the iPod Shuffle, Nano, Classic and Touch. It does not include the iPhone or iPad, which Apple reports as separate items.
Overall iPod unit sales are declining, but the average price per iPod is increasing: people are buying fewer cheap iPods, but in money terms, the increased sales of iPod Touch is mostly making up for it.
Quote:
Originally Posted by BlueDjinn
Now, if you're talking about the NON-iOS based iPods, I agree 100%, but I'd be very surprised if iPod Touch sales/revenue are becoming "irrelevant", as this article would seem to imply. Just wondering..
As a proportion of Apple's total revenue, iPod sales (including Touch) are becoming less significant, mainly because the iPhone is going through the roof, with the iPad hot on its heels.
Echoing what others have said above: iPhones are iPods.
It's going to get harder and harder to calculate how much this device or that device impacts Apple's revenue because those devices are merging as technology advances.
I just got my first ever iPod last week. I bought an iPhone 4.
Comments
The iPod can't and won't die. Such things break and get lost. The technological innovation will continue and more iPods will be sold as long as people listen to music and watch videos on portable devices.
I'm hoping for a smaller iPad or a bigger iPod Touch to come out. I really want such a device with a six or seven inch screen.
As far as TV devices go, the internet is where I watch video shows. Maybe there is a market for TV devices. Right now my computer does everything I need it to do for video content. I don't feel the need for a specialized video device.
Always define your terms.
An iPhone won't be a tiny bit more -- especially not after AT&T is through with him. The appropriate recommendation is an iPod Touch: most of the iPhone's goodies without the monthly bill.
I like, "not after AT&T is through with him."
Agreed, owning an iPhone is expensive. But I do like only having one item to carry around. And now the iPhone 4 has a better camera with flash. With the iPhone I don't have to carry a phone, iPod, camera, GPS, Guitar tuner, calculater, video camera, voice recorder, maps, phone book around anymore.
I take your point though, when business is good I don't mind ATT as much, but when it is slow that $120 bill sure comes around quick every month.
Best
This is rather simplistic thinking, but looking at Apple's product offering category wise, they have:
Laptops
Consumer Desktop
Pro Desktop
iPad
iPhone
iPod
iTV
Software
That is 8 device/product categories, not counting accessories and 3rd party sales.
Of those 8 categories, 1 category represents 1 fifth of revenue. Some how that doesn't seem irrelevant to me.
I just got an iPhone 4, but it's still more convenient for me to keep an iPod Nano permanently plugged into the car's USB port than to try and listen to music from the phone over Bluetooth.
This might be a little off topic but interesting for people discussing the iPod UI in the car. I've been test driving new cars recently, and all have some way to port the iPod to the car's internal stereo with some kind of USB/Aux Jack then the Car's stereo UI takes over.
Honda's USB link
Mini's Proprietary USB link and alternate Aux jack
VW's Aux Jack
Toyota has some kind of Aux jack as well.
Out of all these cars, the VW got it right. The Aux Jack is the best way to control your ipod in the car. By using the ipod itself. None of these other cars got it right. The proprietary UI in most cars is so abysmal that it's just better to control from the ipod. At least Mini offers both the USB option (for $250 more, for a freekin cord) or just the Aux jack.
This is how accountants defraud people. They show charts and graphs based on arbitrary definitions and half-truths to lie without actually lying.
iPhones ARE iPods. iPads are less so, although they do have iPods built in to them.
Considering iPod hardware as a standalone entity is also kind of crazy. The real success was the iPod/iTunes Store ecosystem that really made Apple's solution much more compelling than any of the myriad combinations of me-too hardware and clunky online distribution networks. The iTunes Store is doing brilliantly.
The fact that products that are only iPods are fading is in no way, shape or form that it is dying. It is merely testament that Apple has pushed iPod-related technologies so far that the extended functionality of making phone calls or of being put into a tablet with no moving parts have become the successful children of the venerable device.
Yea. I'm talking about how Apple defines what an iPod is on their income statement. This isn't a bad thing. The iPod's revenue is still very strong, it just doesn't make up quite that big of a portion anymore.
A friend asked me if he should get a iPod nano. I told him spend a tiny bit more and get an iPhone 4.
What!! With all the problems they have? Some friend you are.
Sorry i couldn't resist
The advent of the iPhone changes the equation entirely: my SO switched from Palm on Verizon to iPhone in Feb when her iPod got wonky. She realized that she could replace her iPod w/ an new one - w/ 2x storage - and get the phone part for free....
I don't predict the end of the non-touch/non-phone iPod quite yet, though: shuffles and nanos and classics are still more compelling for some than the "new iPod + free fone", and this will remain so (though tailing off) for the next 3-5 years.
Like plenty of folx I'm a bit disappointed that iP4 didn't jump to 64/128, but that turns out to be a limitation of the current A4. It will no doubt change soon enough. iP4 will be my first iPhone (and my 3rd & most capacious iPod), and I'll be very surprised if my next has less than 128.
Sir, I must point out the flaw in your argument that the 64/128 is a limitation of the A4 chip. Actually, that is a completely baseless statement.
The truth is, most people would never pay for a 64GB iPhone, let alone a 128GB one. According to http://dramexchange.com/, the flash contract price for 8GB is ~16.20. For 64GB that would be $130 or thereabouts. That's about $65 more than the 32GB just in pure cost. Granted, these quoted prices may be higher but that is just cost to Apple. They cannot sell you that at cost. With margins, that additional 32GB pricing puts things beyond the iPhone's reasonable price range.
This might be a little off topic but interesting for people discussing the iPod UI in the car. I've been test driving new cars recently, and all have some way to port the iPod to the car's internal stereo with some kind of USB/Aux Jack then the Car's stereo UI takes over.
Honda's USB link
Mini's Proprietary USB link and alternate Aux jack
VW's Aux Jack
Toyota has some kind of Aux jack as well.
Out of all these cars, the VW got it right. The Aux Jack is the best way to control your ipod in the car. By using the ipod itself. None of these other cars got it right. The proprietary UI in most cars is so abysmal that it's just better to control from the ipod. At least Mini offers both the USB option (for $250 more, for a freekin cord) or just the Aux jack.
Yeah i agree. My Mazda UI just views all the tracks in Alphabetical order. I can view by artist as well. Sometimes i'm halfway to work by the time i find my mood track. Meanwhile i've mowed down thirteen pedestrians, twenty cats and set off three speeding cameras.
This might be a little off topic but interesting for people discussing the iPod UI in the car. I've been test driving new cars recently, and all have some way to port the iPod to the car's internal stereo with some kind of USB/Aux Jack then the Car's stereo UI takes over.
Honda's USB link
Mini's Proprietary USB link and alternate Aux jack
VW's Aux Jack
Toyota has some kind of Aux jack as well.
Out of all these cars, the VW got it right. The Aux Jack is the best way to control your ipod in the car. By using the ipod itself. None of these other cars got it right. The proprietary UI in most cars is so abysmal that it's just better to control from the ipod. At least Mini offers both the USB option (for $250 more, for a freekin cord) or just the Aux jack.
Continuing to derail the thread a bit. I've developed an almost unhealthy tendency to accumulate music. I have music I don't listen to on a regular basis but love the variety of keeping an ipod full with the entire collection (over 4000) songs and just letting it go on shuffle. It's great to hear the occasional odd tune for the sake of variety. I have an after market JVC car stereo+ ipod controller that works well for playing on shuffle or getting to a particular playlist, genre etc (although drilling down to a particular song takes a lot of effort). It keeps the iPod charged. Getting to the point, if the 64 bit iTouch is attractive enough to me to spring for it, it would be very convenient to leave my iPod classic dedicated to my car. Until now, I always disconnect my iPod, except for spring and fall (mild temperatures). Does anyone have any thoughts about just leaving an iPod in the glove compartment always connected re: hot summer and cold winter temperature extremes?
.
Again, this article relates an idea that isn't a bad thing for investors. Its a very good thing. So to take this article as being negative would definitely miss the point entirely. The point, once again, is that Apple no longer really relies on the iPod, and its importance as a revenue driver has completely diminish. Again, I'm not saying REVENUE has diminished. This is a positive because it shows Apple's ability to innovate and find other sources of revenue in the face of slower growth. And the iPod has been showing very slow growth between 2006 and 2010.
Remember, that some people will sit here and say that the iPhone is an iPod and that the iPod has done well all along. This argument is in fact, VERY counter productive to investors. You want to see companies come out and innovate and find new sources of revenue. If the iPhone is just another iPod, then guess what, Apple hasn't found a new source of revenue. All they've done is expanded their product line. That isn't nearly as impressive as creating a whole category of revenue by a new and different product. Shit if one considers an iPhone an iPod, then why would one consider an iPad any different? So iPhones, iPads and iPods are all iPods now and Apple has only two sources of revenue? That's not a very good way to look at the company.
The End of the iPod Era is supposed to signify that its reign at the throne of Apple's main source of revenue has ended. Its Era as reigning champion has ended. Who can argue with that when on Apple's income statement its reports $13.5 billion and only $1.5 of that is iPod sales?
Yeah i agree. My Mazda UI just views all the tracks in Alphabetical order. I can view by artist as well. Sometimes i'm halfway to work by the time i find my mood track. Meanwhile i've mowed down thirteen pedestrians, twenty cats and set off three speeding cameras.
I think that's the funniest post i've seen on AI since i joined! Thanks!
Continuing to derail the thread a bit. I've developed an almost unhealthy tendency to accumulate music. I have music I don't listen to on a regular basis but love the variety of keeping an ipod full with the entire collection (over 4000) songs and just letting it go on shuffle. It's great to hear the occasional odd tune for the sake of variety. I have an after market JVC car stereo+ ipod controller that works well for playing on shuffle or getting to a particular playlist, genre etc (although drilling down to a particular song takes a lot of effort). It keeps the iPod charged. Getting to the point, if the 64 bit iTouch is attractive enough to me to spring for it, it would be very convenient to leave my iPod classic dedicated to my car. Until now, I always disconnect my iPod, except for spring and fall (mild temperatures). Does anyone have any thoughts about just leaving an iPod in the glove compartment always connected re: hot summer and cold winter temperature extremes?
.
I can't say i have a solution for you. I use my iPod Classic at work. I listen to a lot of podcasts and, for reason's i've stated above in this post, i take it out all the time. I'm pretty addicted to my Classic. I even have an iHome Shower player that i keep next to the shower on the window sill so i can listen to my classic for the 15 mintues of prepwork in the day. It replaced a radio i kept in there, but that's probably TMI for most.
I generally agree with your point, but I have to ask: Do your figures and charts above include the iPod TOUCH as well as the iPod Classic, Nano and Shuffle?
I ask because I'm pretty sure that the iPod Touch makes up a huge portion of the iOS-based device revenue, and that Touch sales are through the roof.
The article's definition of "iPod" is the same one Apple uses in its quarterly financial reports. That includes the iPod Shuffle, Nano, Classic and Touch. It does not include the iPhone or iPad, which Apple reports as separate items.
Overall iPod unit sales are declining, but the average price per iPod is increasing: people are buying fewer cheap iPods, but in money terms, the increased sales of iPod Touch is mostly making up for it.
Now, if you're talking about the NON-iOS based iPods, I agree 100%, but I'd be very surprised if iPod Touch sales/revenue are becoming "irrelevant", as this article would seem to imply. Just wondering..
As a proportion of Apple's total revenue, iPod sales (including Touch) are becoming less significant, mainly because the iPhone is going through the roof, with the iPad hot on its heels.
It's going to get harder and harder to calculate how much this device or that device impacts Apple's revenue because those devices are merging as technology advances.
I just got my first ever iPod last week. I bought an iPhone 4.