Apple's second-gen iPod nano off to slow start?
Citing initial channel checks, analysts at Baird U.S. Equity Research are reporting that there appears to be muted demand for Apple Computer's second-generation iPod nano so far, which could have negative implications for NAND flash pricing.
"We believe Apple did not meet its NAND flash order schedule this month," analyst Tristan Gerra wrote in a note to SanDisk investors on Monday.
"While it is difficult to assess the performance of the new nano product family as Apple retailers have been directed to not comment about the iPod's sales performance, the initial feedback we are receiving from industry sources suggests nano volumes are not as strong as in the same period a year ago, which we do not view as a surprise given the new nano offering's lack of new feature set besides higher density."
Gerra further stated that he expects the mix of the black 8GB iPod nano to represent significantly less than 50 percent of iPod maker's total iPod nano units in during the fourth calendar quarter of the year, which could hold negative implications for NAND flash pricing.
"These two dynamics lead us to believe NAND spot flash pricing could peak in October, earlier than expected," he added.
Still, it should be noted that Gerra's previous reports on Apple and its plans for the iPod nano were not particularly accurate.
In July, the analyst backed other Wall Street analysts in saying Apple's second-generation iPod nano would see an approximate 2-month delay that would prevent the players from making their way to market until some time this November.
For its part, AppleInsider was unable to confirm any such delays and maintained that Apple would ship its next-generation iPod nano during the second half of September.
On September 12, Apple introduced the metal-clad iPod nano revision and began shipping units immediately.
"We believe Apple did not meet its NAND flash order schedule this month," analyst Tristan Gerra wrote in a note to SanDisk investors on Monday.
"While it is difficult to assess the performance of the new nano product family as Apple retailers have been directed to not comment about the iPod's sales performance, the initial feedback we are receiving from industry sources suggests nano volumes are not as strong as in the same period a year ago, which we do not view as a surprise given the new nano offering's lack of new feature set besides higher density."
Gerra further stated that he expects the mix of the black 8GB iPod nano to represent significantly less than 50 percent of iPod maker's total iPod nano units in during the fourth calendar quarter of the year, which could hold negative implications for NAND flash pricing.
"These two dynamics lead us to believe NAND spot flash pricing could peak in October, earlier than expected," he added.
Still, it should be noted that Gerra's previous reports on Apple and its plans for the iPod nano were not particularly accurate.
In July, the analyst backed other Wall Street analysts in saying Apple's second-generation iPod nano would see an approximate 2-month delay that would prevent the players from making their way to market until some time this November.
For its part, AppleInsider was unable to confirm any such delays and maintained that Apple would ship its next-generation iPod nano during the second half of September.
On September 12, Apple introduced the metal-clad iPod nano revision and began shipping units immediately.
Comments
It seems that everybody at work has *at least* one (if not several) small MP3 player of some kind.
To be honest, I saw some of the new Nanos the other day, and I really didn't like them. They just felt too feminine, and the bright colours made them look like pre-school toys. The older Nano looked better crafted IMO.
I agree, and many of my friends agree as well.
The colors are rather gaudy for most men (and a lot of women as well). I think they need to rethink their color palate.
I know a few people that have already bought them as well. I also feel it's much better for execise with the aluminum enclosure. I feel this nano was for everyone that doesn't have a nano or has a broken nano.
I LOVE blue in general. And I'm not a fan of the blue color they offered on the iPod nano. I kinda agree the colors are a little too pastel looking for me. But I like the looks of the black and silver ones.
Oh well, IMO the new Nano is a big improvement on the 1st Gen.
If Apple really wanted to make a splash with this, they would have come up with a new design and picked some new colors -- as it is, it just seems like "been there, done that," especially when having an iPod is already old hat.
I wonder if nano sales are a bit lower just because more people are going with the pricier ones instead? And don't forget, Apple just did a big promotion for students that just ended, along with discontinuing EDU pricing on iPods.
So now after a brief period of black and white, highly scratchable plastic enclosures, these colors are "too feminine"? Wow, that whole male anxiety thing is a moving target, ain't it?
I think the new Nanos are incredibly appealing, given their larger capacity, robust enclosures, brighter screens, improved battery life and added navigation niceties. It's hard to imagine that any of this would negatively impact sales.
My only complaint is that I would like to have silver and black in whatever model I'd like. If sales data suggests that that feeling is wide-spread, Apple can easily address this-- like, overnight.
I guess the lower production could cause a higher cost of production per product?
This makes no sense... higher prices? It would seem to be that if Apple's order drops lower than expected their would be SURPLUS NAND flash. surplus = liquidation = lower prices? no?
I guess the lower production could cause a higher cost of production per product?
Apple contracts for huge amounts of NAND storage in order to get the lowest possible price. If their orders fall below contract levels it triggers price increases.
Although I don't have much faith in this analyist.
Why don't you go buy a brown Zune then?
Real men buy pink iPods
... or 80 Gig ones...
-Clive
I agree, and many of my friends agree as well.
The colors are rather gaudy for most men (and a lot of women as well). I think they need to rethink their color palate.
That's exactly it. I saw them in a store the other day and didn't like any of the colors, so thought I'd get the black, but it was too expensive.
It's like when you go to a community centre, and all the walls are painted these awful gaudy colors, because they had to buy the cheap paint.
They've since changed the iTunes ad to the Bob Dylan one, which doesn't show the new iPod.
also
There's like a 10er difference over here between the 8GB Black Nano and the 30GB iPod 5G. So if I want a 8GB one I might as well get the video one.
And I'm not sure how much more masculine you can get than black and silver. Maybe the should have a shade called "Youthful Testosterone Blue" ? or just name a color "Manly" and be done with it.
Bought a 8 gb to run with and use the Nike + and I'm very pleased.
I think when Nike introduces its 2nd gen accessories and the Holiday season kicks in to full gear sales will pick up.
I do think Apple made a big mistake in not getting the 2nd gen nano out in time for back to school, though Apple made sure it was widely available day one.
I wonder if the iTunes 7 problems are having an effect on sales. Or put differently, if iTunes 7 was a flawless, smash hit, would they sell more?
- 2nd gen iPod nanos, battery + functionality improved, colourful, aluminum-enclosed, more scratch resistant ipod nanos: too colourful, too aluminum, too feminine (
- 3 months without new products: too slow, too un-innovating, too what's-the-heck-I'm-in-panic-without-new-products-I'm-lost-oh-my-God-stocks-are-falling-down-analyst (real gods on earth)-predicting-dark-future.......... TOO.
- iPhone: IT'SARRIVINGIT'SARRIVINGIT'SARRIVINGJUSTNOWIT'S it's.... ehm.... it.... TOO.
....and sooo many other examples.
So I jump back to the title: when we'll be REALLY happy?
Evan
This kind of article sounds so familiar, I had to dig up AppleInsider's previous article when the first generation ipod nano's went on sale. Here's their September 2005 on the very same subject: http://www.appleinsider.com/article.php?id=1270
Evan
they sold a million in the first 17 days of it being avaliable, th first gen that is. i wouldnt call that slow.
This kind of article sounds so familiar, I had to dig up AppleInsider's previous article when the first generation ipod nano's went on sale. Here's their September 2005 on the very same subject: http://www.appleinsider.com/article.php?id=1270
Evan
And that proved to be totally wrong. That Nano turned out to be the best selling iPod!