[Kerrigan]

The iPod, the digital music player beloved of everyone from Coldplay's Chris Martin to President George Bush, is in danger of losing its sheen. Sales are declining at an unprecedented rate. Industry experts talk of a 'backlash' and of the iPod 'wilting away before our eyes'. Most disastrously, Apple's signature pocket device with white earphones may simply have become too common to be cool.
...
Analysts warn that the iPod has passed its peak. From its launch five years ago its sales graph showed a consistent upward curve, culminating in a period around last Christmas that saw a record 14 million sold. But sales fell to 8.5 million in the following quarter, and down to 8.1 million in the most recent three-month period. Wall Street is reportedly starting to worry that the bubble will burst.
The Observer | UK News | Why the iPod is losing its cool
_________________________________________________

Of course iPod sales are falling; Apple haven't updated the line for 12 months. I think Apple have done the right thing in spacing a huge gap between updates, in order to avoid total overexposure, and on the 12th, we'll be seeing a renewed interest in the iPod.

[RAILhead]

Hasn't, even.

[Wiskedjak]

If on the 12th Apple only releases a Gen 5.5 model, I doubt we'll see much renewed interest. Some, certainly, but I suspect a significant chunk of people are waiting for something more than just increased capacity.

It's possible that, rather than a backlash, we are simply seeing saturation, where everyone who might want an iPod has an iPod (or two, or three). Personally, I'm sticking with my Gen 3 until the real video iPod emerges.

[EmmEff]

I also don't think it's backlash, it's market saturation. I also don't think people are waiting for the nextgen. Teenagers don't wait for the next big thing. I have a 4th gen 20GB and continue to use it regularly regardless of whether it's "cool" or not.

[Dakar]

Too common to be cool? How about just common.

[Hawkeye_a]

Too common, yes. market saturation, yes.

uncool ?....compared to the fugly competition ? seriously..have you seen the crappy zen from creative ? it's 30GB is thicker than the 60GB iPod, and looks like its made of plastic(probably is)

[demograph68]

I remember the days I could use an iPod without people knowing what they were.... "Is that a cassette player?" ahhh, those were the days.....

Those darn whipper snappers and their Verizon Chocolate dohickeys.

[xi_hyperon]

Apple will likely intro something cool to renew the s-curve of demand. It's only a matter of time.

[JoshuaZ]

They have overseas markets to keep selling too. Japan seems to be a super good market (seeing how they've outsold Sony in their own backyard). They just need a new toy for the back to school and holiday seasons.

[Oversoul]

Agreed. If new sales are declining, it's more likely due to market saturation than backlash.

To say there's been a backlash suggests Apple's done something bad, or that the iPod's image is somehow now perceived negatively. Neither is the case. If the article suggests the iPod is "too common to be cool" then the reporter really doesn't have an understanding of the iPod's lukewarm competition.

The slowing sales, again, is likely due to market saturation. The iPod lines sorely need an update and speculation on updates have dominated the rumor mill all summer. Those who only fill their iPod with a few songs at a time already have a Shuffle or Nano. Those who want larger libraries or video functionality probably have video iPods. And some people have both. People are waiting to buy the next hot thing, and it'll take more than larger storage to prompt that.

[C.A.T.S. CEO]

Countdown to Sept. 12: 3 days

[rickey939]

Originally Posted by C.A.T.S. CEO

Countdown to Sept. 12: 3 days

Bingo, that is the day Apple officially goes out of business.

[C.A.T.S. CEO]

Originally Posted by rickey939

Bingo, that is the day Apple officially goes out of business.

[Kerrigan]

It's a joke, son, a joke!

[C.A.T.S. CEO]

Originally Posted by Kerrigan

It's a joke, son, a joke!

k

[rickey939]

Originally Posted by C.A.T.S. CEO

[turtle777]

Originally Posted by C.A.T.S. CEO

-t

[Kerrigan]

[freudling]

Why does everyone worry about stuff like this. Market analysts always do this with their worrying. The iPod is pretty good. With iTunes, they have a great product. No worries. And if sales really do halt, then iPod owners will be cool since less and less people will have them.

[harrisjamieh]

Personally, I am dissapointned that Apple has left it so long to update the iPod lines. A year is just way to long, especially in the tech world. IMO, they need upgrading to a .5 rev every 4 months (ie capacity increase), and need a next gen every 8-9 months.

I will be very dissapointed if the 5 gen only gets a .5 update.... it needs something new and innoative to stay 'the gadget to have'.

[©öñFü$íóÑ]

lol..... my bet is on an even thinner iPod model... the first ever portable digital music and video playback device to fit nicely..... in your wallet.

It's like everyone in my school has one.... except for me. I was almost... ALMOST ready to get me an iPod Nano.... but my hard disk failed on me and i had no choice to replace it. Guess i'll just wait for the next model.

[Mastrap]

Originally Posted by Kerrigan

It's a joke, son, a joke!

"Did ya see that hawk after those hens? He scared 'em! That Rhode Island Red turned white, then blue. Rhode Island, red white and blue! That's a joke, son, a flag-waver! You're built too low. The fast ones go over your head. Ya got a hole in your glove. I keep pitchin' 'em and you keep missin' 'em! Ya gotta keep your eye on the ball! Eye. Ball. Eyeball! I almost had a gag, son--a joke, that is!"

[Big Mac]

Uh, they claim iPod sales fell in the most recent quarter, but that's just not true - that quarter saw a significant YOY increase in sales. And of course the holiday quarter would see the biggest sales - it's the holidays. I wonder if The Observer will eat its words if Apple exceeds previous holiday sales this year.

[andreas_g4]

^^ True, true.

[Zeeb]

I think people get bored with even very well designed products after a number of years. I hope Apple decides to release a mp3 cell phone soon--and in more color choices than black and white. I don't want to carry 2 devices anymore and a good cell phone mp3 player would be perfect.

One can debate whether or how much the ipod's popularity/sales might be suffering but the fact is that people will get tired of it eventually.

[Eriamjh]

I say "meh".

[hayesk]

Originally Posted by harrisjamieh

Personally, I am dissapointned that Apple has left it so long to update the iPod lines. A year is just way to long, especially in the tech world. IMO, they need upgrading to a .5 rev every 4 months (ie capacity increase), and need a next gen every 8-9 months.

Why do you care how often iPods are updated? Do you buy a new iPod every 8-9 months?

Apple updates iPods when the technology and time is right. That isn't necessarily a regular schedule.

[Kerrigan]

The Financial Times, a much more reputable paper in almost all aspects, has this to say:

First, consider the source of Apple’s strength. Its execution of its digital music strategy has been a textbook example of how to consolidate an early market advantage. It has extended its product range and segmented the market, moving into lower-priced devices and up into video. It has poured money into advertising, turning the iPod into one of the fetishistic objects of the age.

...

History shows that technology leaders, once established, are seldom dethroned by direct competition. It usually takes a shift in business model, or in a technology paradigm, before that happens.

FT.com / Comment & analysis / Comment - Apple’s sound strategy for the iPod

[ironknee]

my opinion is that ipods are not like computers and need less of an upgrade cycle. and that's the beauty of it

also, i don't think most people are watching apple as closely as most of us are on here. i bet most people don't know apple has an announment on the 12th

btw anyone know how many songs the itunes store has sold so far?

[C.A.T.S. CEO]

Countdown to Sept. 12: 2 days

[turtle777]

Originally Posted by C.A.T.S. CEO

Countdown to Sept. 12: 2 days

Only 1 day in Europe

-t

[Velocity211]

Yeah the sales are going down, but down enough for some other company to take apple's place as 1st in the mp3 player market? zune... people are gonna buy it just to be different.

Originally Posted by what_the_heck

Only 1 day in Europe

-t

i hope you're not serious.

[SirCastor]

I hope that when Zune comes out Microsoft doesn't somehow attribute the lower iPod sales to it's "miracle device".

[©öñFü$íóÑ]

Originally Posted by SirCastor

I hope that when Zune comes out Microsoft doesn't somehow attribute the lower iPod sales to it's "miracle device".

nah.... it's more likely Chocolate from Verizon/LG

[Hawkeye_a]

Tablet PCs...."Origami"....Zune....

Thats my prediction anway. Microsoft's track record for "new devices" suck.