Apple 60GB iPod \'at risk\'

Apple may be preparing to replace its high-end 60GB iPod with a new model, according to several reports, including a new research note from American Technology Research. The firm said that Apple earlier this month notified its resellers and distributors that the high-end video-capable 60GB iPod was "at risk," meaning that Apple could discontinue the product and/or replace the product at any time through the end of April. "Timing is not certain to us, but we believe a new widescreen video iPod with Bluetooth headphones could be ready as early as the June quarter," analyst Shaw Wu of told clients. The note also mentioned the near completion of the transition to Intel-based iMacs, as Apple finally removed the 20-inch iMac from its online store, improving supply of the MacBook Pro, "lukewarm" sales of the Intel-based Mac mini, and a strong seasonal decline in iPod nano sales.

"The $299 30GB vPod continues to sell well, down modestly from high December quarter levels. The most interesting development here is that Apple has notified its distributors that its high-end $399 60GB video iPod is 'at risk' until the end of April, meaning it could be discontinued and/or replaced around that time frame," Wu wrote in his note. "As we have mentioned before, our checks indicate that Apple has been working on a wide-screen video Pod (we believe now likely with Bluetooth headphone capability)."

Mac mini, iPod nano sales slow

Despite more features, the analyst said that the Mac mini's higher price points has been causing hesitation among some buyers and that the iPod nano appears to be experiencing the greatest seasonal decline within the iPod family; however, Wu said that the low-end 1GB iPod nano model has been selling well.

"We believe Apple may need to increase storage capacities and/or cut prices to re-generate interest. Declining prices in NAND flash and additional capacity coming onboard should help Apple facilitate these moves," Wu said.

The company did not change its March quarter estimates of $4.43 billion in revenue and $0.43 in EPS, above Apple's guidance of $4.3 billion and $0.38 per share profit, but emphasized that consensus revenue and iPod unit forcasts may be unrealistically high.

by MacNN Staff