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Apple: 50% of our traditional MP3 buyers new to iPod

Apple announced a year over year decline in its sales of 10.2 million iPods, but noted that the company continues to maintain a greater than 70% share of the MP3 player market. It also stated that 50% of its traditional MP3 player buyers are new to the iPod.

Ever since the iPod's runaway success earlier this decade helped Apple to turn itself around and launch its successful retail efforts, iPod sales have defined the company's success. Now however, the iPod segment which Apple refers to internally as its 'traditional MP3 players,' including the iPod shuffle, nano, and classic, is seeing a decline that has made the iPhone and Mac segments bigger earners in comparison.

Apple is even promoting the shift, making entry level iPhones a tempting alternative for new iPod buyers and positioning the iPhone-derived iPod touch as a high end alternative. Despite the global economy, sales of the pricier iPod touch are up 130% year over year, indicating Apple isn't at all stuck with a star product that has nowhere to go.

Even so, Apple isn't giving up its lead in the traditional MP3 player market. Despite experiencing less growth than in previous years, the company is holding on to its majority market share in MP3 players and is "gaining share in every country" outside the US as well.

Assisting the company's strength in music players is the phenomenal success of iTunes, which Apple just announced has passed the 8 billion milestone in song downloads. The popularity of iTunes attracts new users to the iPod, creating a situation where half of new iPod buyers are new customers, not just previous buyers upgrading to the latest model.

"Despite the decline in our sales, our research shows that about 50 percent of our recent traditional iPod purchasers are buying their first iPod," Apple stated in its earnings conference call.



11 Comments

dreyfus2 18 Years · 1069 comments

Interesting. Schiller announced they have just crossed the 6 billion song line on 6th of January 2009 during Macworld. Two billion songs in 6 months? Boom?

chris_ca 19 Years · 2540 comments

Quote:
Originally Posted by dreyfus2

Interesting. Schiller announced they have just crossed the 6 billion song line on 6th of January 2009 during Macworld. Two billion songs in 6 months? Boom?

5 Billion song on 19 June, so that only 1 billion in 6 months.
Still a big boom though.

ajitmd 17 Years · 365 comments

The iPod Touch needs to have hi quality camera that has zoom and hi resolution CCD with flash... good for hi quality photos and video. Yes, it will make the iPod thicker like the iPhone, but the extra thickness can be used to pack more battery and memory, microphone for VoIP and front camera. Add a robust GPS capability. WiFi-N. Text message capability.

In order to start another upgrade cycle and bring new users, Apple needs to add more features... not another minimal iPod Shuffle. We got to have value... so I can ditch the regular digital camera, camcorder, GPS, etc. Most important, I do not want to get tied to a telco like ATT. I got WiFi at home, work and other places where I hang out.

ATT would get pissed... but Apple should NOT limit itself. The company got to add compelling reasons for folks to upgrade or even new customers.

leonard 23 Years · 527 comments

Quote:
Originally Posted by Chris_CA

5 Billion song on 19 June, so that only 1 billion in 6 months.
Still a big boom though.

Those Michael Jackson songs are selling like hotcakes!

brucep 18 Years · 2800 comments

Quote:
Originally Posted by AjitMD

The iPod Touch needs to have hi quality camera that has zoom and hi resolution CCD with flash... good for hi quality photos and video. Yes, it will make the iPod thicker like the iPhone, but the extra thickness can be used to pack more battery and memory, microphone for VoIP and front camera. Add a robust GPS capability. WiFi-N. Text message capability.

In order to start another upgrade cycle and bring new users, Apple needs to add more features... not another minimal iPod Shuffle. We got to have value... so I can ditch the regular digital camera, camcorder, GPS, etc. Most important, I do not want to get tied to a telco like ATT. I got WiFi at home, work and other places where I hang out.

ATT would get pissed... but Apple should NOT limit itself. The company got to add compelling reasons for folks to upgrade or even new customers.

Agreed .

In fact all the models should have some ipodtouch tech inside of it
I would even suggest making the 120g classic with a full touch screem on the back of it I would call it the classic ipod-touch .