View this article at: http://www.macnn.com/articles/05/01/14/apple.after.ipod/
Friday, Jan 14, 2005 11:55am
Forbes: When iPod Sales Run Out Of Steam
With all of the attention on Apple's success, Forbes' Arik Hesseldahl wonders what happens "When IPod Sales Run Out Of Steam." While the MP3 player market penetration is still relatively low--near 15% of US households--Apple may be too heavily relying on the consumer electronic device, according to the author: "Sure Apple can innovate by adding features like video and maybe wireless connectivity. But even for a company as innovative as Apple, that well can run dry, leaving it to compete on price alone. That's a scary thought when you consider that 34% of Apple's revenue last quarter was derived from iPod sales. A sudden, unexpected shift in consumer tastes--they are a fickle bunch after all--could feel like a nasty punch in the nose."