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Are iPod sales successful?

From October to December 2007, Apple sold more iPods than in any quarter since the appearance of the player over the past six years. Quarterly sales record (22.1 million iPods) helped Apple get $ 9.6 billion in revenue and $ 1.5 billion in profits. But then Apple shares fell on the stock exchange, partly because Apple announced sales plans for the second quarter, which were significantly lower. than expected on Wall Street, but also because the iPod sales record did not meet expectations. The press widely reported that the data on the number of sales is a wake-up call for investors and that the company's heyday has ended.

Why did stocks fall if iPod sales exceeded all previous quarters? "Apple's results are pretty good compared to the rest of the market," said Ross Rubin, director of market research at the NPD Group . After selling more than 22 million iPods last quarter, Apple securely holds the top spot on the music player market with a 67% share of NPD data for December. The fall in stocks was due to a slowdown in growth compared with the previous year. In the first fiscal quarter of 2007, Apple sold 21 million iPods, that is, over the year, sales grew by only 5% - this is still a growth, but not such a significant one that was expected on Wall Street. for the quarters in which there were holidays. The number of iPods sold in the first quarter of 2007 increased by 50% compared with the first quarter of the previous year. In the first quarter of 2006, iPod sales grew by 207 percent, compared to the same period in 2005. Although sales of players in the last quarter were higher than in the first quarter in 2006, but in terms of growth, this is a fall. But still, growth slowdown is not surprising. If iPod sales grew at the pace shown in the first quarter of 2005, then 28 million players in the first quarter of 2006 would have been sold, more than 174 million in the same quarter of 2007, and as many as 1 billion iPods in the last quarter. It should be borne in mind that by April 2007, Apple had sold its $ 100 million iPod. Obviously, the growth had to slow down gradually; it was only when and how much. Even though sales growth figures slowed down, Apple’s prospects are not in doubt. For one reason, Apple reported that the average price of an iPod sold during the previous quarter was $ 181. This is the highest price in the previous year and a half. To a large extent, this figure has grown due to the release of the iPod Touch player, which is available for $ 299 or $ 399. Also, the influence of the iPod Touch can be seen in Apple's revenue growth from the sale of music and iPods - more than 147% in the first quarter of 2008 compared with the previous quarter. This figure is only 120% in the first quarter of 2007 compared with the last quarter of 2006. “Consumers are well aware of what Apple is offering in the iPod line,” said Tim Boyarin, head of consulting firm Creative Strategies . “They are waiting for a new level of innovation. Nano and shuffle still have a market, but there could be more significant demand for touch. ”This is the direction Apple is going to promote the iPod line, which heralds the company's continued success in the music player market.


This article is part of my blog Haywired.ru . By and large, this is a blog about everything that happens in the world of Apple, but we are not limited to this. Subscribe to the RSS feed .

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Source: https://habr.com/ru/post/23240/


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