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Analyst expects slower iPod growth rate

updated 05:05 pm EDT, Fri April 7, 2006

Slower iPod growth rate?

Banc of America today cut its price target on Apple shares from $82 to $77, causing the stock to drop two percent. The firm cited Apple's lower forecasts for iPod and Mac sales as the cause, and said that iPod sales will remain strong with a slightly less substantial growth rate. BofA also believes that Apple's market share gains will be less than expected, according to Reuters. Apple shares had gained 15 percent over the past two days following the company's announcement of its Boot Camp software. By unveiling free software that will allow Intel Macs to run Windows XP, Apple hopes to broaden its market share by offering Mac users access to previously unusable Windows applications. The company has struggled with growth in the past -- especially in the enterprise market -- as businesses were hesitant to purchase Macs, mostly due to software limitations.




by MacNN Staff

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  1. brondee73

    Joined: Dec 1969

    0

    analyst MOTO statement

    MOTO = Master Of The Obvious

    After the last few years of phenomenal growth with the iPod due to growing popularity, it would be expected at some point that it reaches a saturation point in the market. No company can continue to grow their market by 2x to 3x year over year forever. iPod continues to sell very well though as they continue to innovate (i.e. the video iPod .. I upgrade my 3rd generation for it). Last time I went to the Apple Store the check out line was all the way to the door. It must be really bad if sales are that poor.

    As for not growing Apple's market share, I think the analyst must be smoking crack. But that is just my opinion. Boot camp for the switchers, and secure/mature OS X for windows users tired of viruses and spyware. Move on. Pay no attention to Bank of America on this topic.

  1. jarod

    Joined: Dec 1969

    0

    Never

    listen to analysts when it comes to Apple. These guys, with the exception of UBS, know jack s*** 99.9% of the time. Heck I can even be an analysts. Let see...umm I predict that one day, Apple will release an iPod with a bigger hard drive!!

  1. slboett

    Joined: Dec 1969

    0

    Ugh...

    Agreed. This stuff gets to be ridiculous after a while. These analysts would have had no audience before the WWW. They should have none now.

    Scott

  1. Paul Huang

    Joined: Dec 1969

    0

    self-fulfilling prophesy

    The broader market was leading the market. I certainly wouldn't attribute the 2% downward move to Banc of America's statement, althought they would like to take all the credit.

    Aside from that, the drop is a result of 15% rise in just two days. It's called greed or "natural forces".

    Banc of America can just kiss my arse.

  1. kw99

    Joined: Dec 1969

    0

    After rising

    about $10 in the previous two days, Apple drops $1.50 and it's because of this analyst's statement? Yeah, right...

    There is one limitation to iPod use; the user must have a personal computer with Mac OS X or a recent Windows. That will limit future growth more than any competitor. Back in the days of the Sony Walkman, the user did not need anything except the device and media (casette tapes). So what Apple needs to continue its growth is a small, relatively inexpensive (when compare to a computer) and simple (when compare to a computer) device that does everything iTunes does for the iPod. That is, rip music CDs, archive music collection, create playlists, and connect to iTMS via phone line (or Internet connection if available). They could even create a version that is built into a special iPod Hi-Fi.

    As earlier comments say, Apple will reach a "saturation" point with it current market. To increase iPod sales, it needs to increase the potential number of customers. If the goal is to continue the growth in iPod sales, Apple should create such an "iPod access device" and sell it at cost. If Apple does not do it, I think it would be an opportunity for a third party like Belkin or Griffin to step in (although a non-Apple device would lack iTMS access).

  1. msuper69

    Joined: Dec 1969

    0

    Could be correct or not..

    He's got a 1/3 chance of being correct.

    Might go down. Might go up. Might remain the same.

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