Technology news and Jobs 
Information Technology News Apple to sell 12 million iPhones in 2008 at reduced price: analyst
Information Technology News Apple to sell 12 million iPhones in 2008 at reduced price: analyst | Apple to sell 12 million iPhones in 2008 at reduced price: analyst |
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| by Stan Beer | |
| Friday, 19 January 2007 | |
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According to TBR, the iPod market is slowing rapidly as it matures and hints that the iPhone may be a response by providing an upgrade path. "Apple’s iPod sales for the quarter totaled a record 21 million in 4Q06 as the music player became a top-selling retail item on Amazon during the holiday season. However, obscured by the record unit shipment numbers in 4Q06 was the ongoing slowdown in iPod growth and the potential market saturation. iPod revenue and unit shipment growth for 4Q06 came in at 17.9% and 50%, respectively. While robust growth results, these figures were much lower than the 4Q05 levels of 140% revenue growth and 206.6% unit growth, and a far cry from the respective revenue and unit growth rates of 284.1% and 524.8% recorded in 4Q04," the report states. "The slowdown in iPod revenues and shipment growth signals a maturing market where most of the demand will be driven by replacement sales. Replacement sales are driven by device wear and the upgrade cycles. To shorten the iPod upgrade cycle, the company will need to bring new devices to market more quickly and incorporate added-value functionalities such as wireless networking/synching, improved visual display and extended battery life." TBR also points to many challenges facing Apple's the iPhone in both the consumer and corporate spaces. |
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