iPod shuffle sales, marketshare fall

Posted:
in iPod + iTunes + AppleTV edited January 2014
Apple Computer's share of the flash-based digital music player market in the US has declined in recent weeks as lackluster sales of iPod shuffles are also threatening to drive down flash memory prices by as much as 40 percent.



Weaker than expected sales of the shuffles has market sources wondering what Samsung Electronics will do with the large proportion of NAND flash chips it has allotted for Apple, according to DigiTimes.



The overseas publication, which keeps a close eye on Apple's Taiwanese component suppliers and manufacturing partners, cites unnamed sources who say sales of the digital music player are not justifying the supply forecasts for NAND flash that Apple has secured from Samsung.



If Apple is forced to cancel or reduce orders, Samsung may release even more NAND flash chips into a market already being affected by an influx of new NAND flash producers, the report adds.



As a result, flash prices may drop by up to 40 percent in the future, according to Peter Shu, chairman of Transcend Information.



Meanwhile, slowing sales of iPod shuffles are also having an adverse affect on Apple's share of the flash-based digital music player market, notes Macworld UK.



According to new data from NPD Techworld, Apple's share of flash players in the US, which stood at 58.2 per cent in March, declined to 52 per cent in May. June data is not readily available.



The slowing in demand for Apple's iPod players, specifically the iPod shuffle, can be attributed to a number of factors sources say, including: seasonality, more efficient production methods and a lack of new offerings.



However, sources close to Apple say it is only a matter of weeks before the company begins to introduce its summer hardware line, which is expected to include updates to at least one family of iPods.



In recent months, Wall Street analysts have been abuzz over reports of new iPod shuffles, which will reportedly pack 2GB of storage space and possibly a small display screen.



In the meantime, it appears that Apple has dropped its payload of existing shuffles on its reseller channels in hopes of depleting inventory before introducing new models.

Comments

  • Reply 1 of 13
    louzerlouzer Posts: 1,054member
    Well, anyone could've told you the shuffle was going to be a flop. Overpriced. No screen. No FM tuner (so you can let professionals build your playlist, not you), no timer, no way to use with your favorite subscription-based service. I mean, its lame city. Plus, for just another $250, you can get an iPod photo.
  • Reply 2 of 13
    nagrommenagromme Posts: 2,834member
    Apple had better act fast... all other flash players combined are selling nearly as well as the Shuffle alone
  • Reply 3 of 13
    nagrommenagromme Posts: 2,834member
    Quote:

    Originally posted by Louzer

    Well, anyone could've told you the shuffle was going to be a flop. Overpriced. No screen. No FM tuner (so you can let professionals build your playlist, not you), no timer, no way to use with your favorite subscription-based service. I mean, its lame city. Plus, for just another $250, you can get an iPod photo.



  • Reply 4 of 13
    jimdreamworxjimdreamworx Posts: 1,064member
    A drop in flash RAM prices is bad how?
  • Reply 5 of 13
    rokrok Posts: 3,519member
    wait, so i assume that shuffle sales would be better if the price were cheaper, right? so the weak sales in shuffles means the entire flash memory market will see price drops as there is more supply than demand. doesn't that mean the shuffle's price is bound to go down, regaining sales initially lost due to the higher price, thus getting us back to an equilibrium state?



    or am i just being naive here?
  • Reply 6 of 13
    Quote:

    Originally posted by Louzer

    Well, anyone could've told you the shuffle was going to be a flop. Overpriced. No screen. No FM tuner (so you can let professionals build your playlist, not you), no timer, no way to use with your favorite subscription-based service. I mean, its lame city. Plus, for just another $250, you can get an iPod photo.



    or.. for 50$ more they can get 3 more GB's for a 4GB mini w/ a display screen, fm port, vol and such and a timer, and if they wanted the 6GB, it would be 100$ more... so they really get the better deal for an extra 50$... or 100$ for the 6GB...
  • Reply 7 of 13
    chris vchris v Posts: 460member
    Quote:

    Originally posted by Louzer

    Well, anyone could've told you the shuffle was going to be a flop. Overpriced. No screen. No FM tuner (so you can let professionals build your playlist, not you), no timer, no way to use with your favorite subscription-based service. I mean, its lame city. Plus, for just another $250, you can get an iPod photo.



    Yeah, any electronic device that can only scratch its way to 52% marketshare in the entire 5 months since its release is obviously destined for the dust heap of history. Poor, beleaguered Apple. When will they ever learn? It's time to ditch the outmoded profit-based model and give the entitlement kids what they think they deserve for free!
  • Reply 8 of 13
    scavangerscavanger Posts: 286member
    The 1 gig shuffle are actually a really good deal when you account for the cost of 1 gig thumb drives, then also have an mp3 player. The prices were better then competitors.
  • Reply 9 of 13
    Quote:

    Originally posted by scavanger

    The 1 gig shuffle are actually a really good deal when you account for the cost of 1 gig thumb drives, then also have an mp3 player. The prices were better then competitors.



    true.. but i think people wanted them more for then just flash drives.. i think they wanted it for souly music... so thats why people left the shuffle in the dust.. and went w/ minis for that extra 50$
  • Reply 10 of 13
    macgregormacgregor Posts: 1,434member
    This kind of news is "a concern" for investors in the flash memory stock market, not the real world.



    But it means don't buy any of those things, just wait to get free ones when buying a new printer or iMac from resellers....or free with a 64 ounce Big Gulp.
  • Reply 11 of 13
    Quote:

    Originally posted by MacGregor

    This kind of news is "a concern" for investors in the flash memory stock market, not the real world.



    But it means don't buy any of those things, just wait to get free ones when buying a new printer or iMac from resellers....or free with a 64 ounce Big Gulp.




    sounds nifty... but that seems like a good plan...
  • Reply 12 of 13
    rickagrickag Posts: 1,626member
    Quote:

    Originally posted by nagromme

    Apple had better act fast... all other flash players combined are selling nearly as well as the Shuffle alone



    post of the day. Thank you.
  • Reply 13 of 13
    hobbeshobbes Posts: 1,252member
    Hmm, anyone notice that the iPod shuffle has completely -- and I mean completely -- vanished from Apple.com's "Top Sellers" list?



    Not a good sign...



    I think Apple is quickly reaching a saturation point for iPod sales -- I'm not expecting a massive decline in sales, but the end of the explosion (it had to happen at some point).



    Let's see what they do next to refresh the line.
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