updated 12:10 pm EDT, Mon October 17, 2005
Video iPod: evolutionary
Banc of America Securities Chief Financial Analyst Keith Bachman today said "we continue to believe that Apple's iPod video will be , not revolutionary," while maintaining a "buy" rating with $52 price target. After testing the video downloading features of iTunes 6, the firm concluded that "Apple had more content and more competitive advantage in the music market as compared to the video market," Bachman said. After downloading a Madonna video and an episode of Desperate Housewives, Bachman concluded that while consumers would be satisfied with the download speed, more content will be necessary to make the iPod video appeal to a mass audience, according to a report from Forbes.com. "We suspect we will see strong sales in the fourth quarter, given the buzz over the product, and follow-on sales will depend on the breadth of content," Bachman continued. Bachman estimates that Apple will sell 9.3 million iPod units in the fourth quarter and 29 million units in fiscal 2006, according to the report. Bachman noted "we think Apple is in the early phases of a long term plan to grab a strategic position on the distribution of mobile video content."