Analyst: Apple must upgrade iPod line
Posted by Dennis Sellers 
Jan 23, 2008 at 12:12pm
American Technology Research analyst Shaw Wu says Apple need to upgrade its iPod line. Revenue growth from iPods was 17 percent in the last quarter, but Apple “only” sold approximately 22 million iPods, when consensus views were predicting 24 to 25 million.
Wu says this is an unimpressive five percent growth rate of year-over-year, even though Apple introduced the iPod touch and the third generation iPod nano with video capabilities. In a note to clients, Wu say Apple must up the value of the iPod line because of possible cannibalization from cellphones and saturation of the market. However, Wu notes that “disappointing” iPod growth may be offset by high iPhone sales, which have doubled sequentially to 2.3 million.
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
Andrew T Says:
I hope this individual is held accountable for the money lost by his clients when they make decisions based on his personal opinon. How difficult is it to sell new versions of iPods to a market already dominated by iPods? I’d say that the constant growth in sales and market share percentage by Apple is proof enough that this company isn’t going in the hole any time soon. I’d invest in the stock while the price is this low before Apple drops a bomb that puts stock costs out of reach for the average investor.
Posted on January 23, 2008