The iPod is on life support
Summary: The iPod might not be dead, but it's certainly dying, a victim of its own popularity and convergence devices.
When you think about Apple, you think iPhone, iPad or maybe even Mac. However, if you go back a decade, one product the company was well known for that has now sunk below the radar is the iPod. In recent years sales of this once flagship product have been eclipsed by the iPhone and the iPad.
Are the days of the iPod numbered?
Last quarter Apple sold 6 million iPods. Not a shabby number compared to Mac sales of 4 million, but a drop in the ocean compared to iPhone sales of 26 million and iPad sales of 17 million. Also, bear in mind that the cheapest Mac -- the Mac mini -- starts at $599, while the cheapest iPod -- the diminutive Shuffle -- is an absolute bargain at $49.
Apart from a spike in sales during the holiday season, iPod sales have been slowly declining for over three years now. Once Apple could count on about 10 million iPod sales a quarter, and double that over the holidays, but now that number has been cut by a third, and continues to fall.
Two things killed the iPod. First, there's an awful lot of them out there. Apple has sold a shade over 350 million iPods since its debut in 2001. That's a lot of iPods, and I can tell you as having owned quite a few over the years, they're incredibly long-lived bits of kit. Everyone who wanted an iPod more than likely has several laying about the place already.
The market is literally saturated with iPods.
Another nail in the -- tiny -- iPod coffin are smartphones and tablets, convergence devices powered by both iOS and Android that do what the iPod did, plus a lot more besides. Why carry an iPod and a cellphone when you can carry a single device?
The next chart clearly shows the how iPod sales first flat-lined and then started taking a dive. This dive steepened into a nose-dive as soon as the iPad came on the scene.
The decline is smooth and, so far at any rate, quite predictable. In a few quarters sales of the iPod will be below that of Mac sales -- which have themselves flat-lined -- and the era of the iPod will be truly over.
The iPod's job is done. It encouraged people to buy other Apple products. And it's a strategy that worked well.
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Talkback
Good reflection by Adrian
I think the rumored 5th iPod touch needs to have some form of data, even if it's just 3G, or it won't succeed. iPod touches are no longer iPods per se -- you don't just use them for music. iPods have to move beyond that. the iPod touch is doing that, but with wifi data only it's very hard for it to reach its full potential.
For me, it's either that or the iPod line will eventually be killed.
Theres no point in a 3G ipod. Thats what an iphone is for. A 3G ipod would
Then why...
There really is no justification for 3G/4G data charges. How many people spend a majority of their time away from WiFi connections these days? And please don't say in the car; if your alone, well that should be obvious, and if you're not, how about being social instead of staring at your phone?
If you're away from the big city centres
Pricing
So you want
Yes
It's just like the transistion from cell phone to smartphone
Ipod dying?
With the rumored lower cost iPad Mini, this trend will accelerate
IMO, the iPod family of products still have about five more years of useful life yet before technology passes this ground breaking product line by. I suspect that I shall have the same fond nostalgic memories for this line of products as I do for my first ever home PC - the Apple II plus - when time eventually catches up to Apple's little music box.
Change in functionality, perhaps?
As Adrian points out, iPhones, Androids and other smartphones can now easily fill this niche for the large majority of people.
So, what remains? Well, at least in my case, the iPod shuffle is still an invaluable tool for exercise. It's small, light, and clips onto my clothing. I can adjust it and switch songs effortlessly, and without the need to look at the device. It distinguishes itself from the iPhone through its design and functionality.
Other than that, it's difficult to see the point of most iPods. It might be the case that, in addition to the iPod Shuffle, an iPod touch with 250GB+ storage could be a niche product for those individuals with particularly large music collections.
IPhone and iPad don't work for exercising
I work out using my iPhone to stream music
Having said that I've been on the lookout for an inexpensive iPod nano to take to the gym and/or a 3rd or 4th gen iPod to have a playlist that I can plug into a dock at a party and not have to worry about someone playing with my iPhone.
Music players are a legitimate market (imagine!)
The same morons who are trying to use their iPad for everything else it is ill suited to perhaps? Seriously though, I'd be willing to bet that it has already been done. I can well imagine someone perching their iPad on the handle bars - hell, someone probably even has a bespoke attachment iGym(tm) iPad holding device for this very purpose.
On the mp3 player side of things, I think there will always be a market for dedicated music players. I can think of several reasons:
1) you don't want to give your kid/teenager a phone capable device
2) better battery life
3) no screen required (i.e. physical input)
4) durability
5) you just want to listen to music
So many reasons. .
I own a Nexus S, Iphone 4, Shuffle, Ipod Touch, Nexus 7.
Each have their own unique purpose. We'll other than the two phones . . . If you were wondering, I prefer the Nexus :)
The shuffle for it's size and relative value. I can risk damaging it while out in my rzr or dirt bike. It has dedicated buttons to change songs and the battery will last a camping trip.
While I do consume some media on my phone, I leave most of that to the ipods. I am away from the house for days and have a job that doesn't allow me to charge my devices. There is a bit of battery anxiety.
The touch is used the most. I play games and consume all types of media gleefully dismissing the 20% warning. With this holding most my media, i dont need to spend the extra money on a 32 or 64GB phone. It also takes all the abuse of my physical, care free lifestyle saving me larger bills with things break.
The Nexus 7: well, it's just awesome. Dog catcher, beautiful games, books. Or if im too lazy to power up the laptop to check stocks, email, Google something to prove my friends wrong.
Please dont kill the stand alone music player. I need it.
I guess I am a moron
I make do with what I have
And in one quarter, the iPod outsold
Waiting for Gango
Bott's LAw invoked.