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Touch is proof positive that Apple's iPod is evolving?

Added 11-01-2010

The iPod is without doubt the cash cow of Apple, responsible for over 40% of Apple's total revenue stream. Therefore it must come as a concern to the company when their own cofounder and analysts are predicting the doom of the device.

It appear Apple have accepted and taken on board concerns that the iPod could be left behind by general advances in global communications devices like mobile phones. The iPhone and Touch are proof positive that Apple have noted that a stand alone mp3 player is not enough.

The Classic and Nano have expanded their capabilities in recent years, with video playback. But the iPhone and Touch have pushed the bar to new heights, highlighting that the iPod is indeed evolving with the times. The Touch is an obvious attempt to aim a device at users no longer content with a sole portable audio player.

Apple's market share has remained steady, showing that their huge marketing machine and subtle technological improvement have prevented a dip in sales revenue. In fact iPods are selling at an all time high during 2007 and 2008. But, it does appear sales have leveled off, with the huge boom no longer to be expected.

Steve Jobs has declared that the iPhone and Touch are essential components in the evolution of the iPod brand. Whether the iPhone will exclusively replace the iPod is unlikely. Apple tend to prefer an integrated range of products, each offering a specific advantage to users.

With mobile phones sales reaching four billion worldwide, in comparison to total iPod sales of 160 million. It's obvious that morphing the iPod into a total entertainment and communications device could be very profitable. Likewise the handset manufacturers are trying to morph their communications devices into the entertainment sector.