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iPod Sales Growth Slowing

Added 11-09-2008

It appears the sales of iPods has hit near saturation point, with those who want an iPod already owning one. Apple's founder Steve Jobs used to make a song and dance about the amazing sales growth of the iPods. He's now tended to focus on the market share Apple has, due to overall sales per quarter tending to level off. For example, first quarter sales of iPods was as follows; 2006 - 14043; 2007 - 21066; 2008 - 22121. As you can see, there was an increase of 7000 sales between 2006-2007, but only 1000 between 2007-2008.

In a vain hope of improving sales for existing iPod owners, Apple have announced minor alterations to iPod models, such as new colours. Unsurprisingly this has coincided with the Christmas holiday period. Therefore, in the future, expect more minor updates to iPods so that people will consider replacing their old model.

The changes to both the Touch and Nano, announced in Sept 08 has failed to wet the appetites of analysts. Market predictions are for insignificant holiday sales growth. Analysts do predict a 9% increase - better than last years 5% increase - but, down on the 50% increase of two years ago. The fact Apple's shares dropped 4% on the day of announcement, shows investors do not expect a big leap in sales.