Will the iPhone Cannibalize iPod Sales?
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As the engine of iPhone hype gears up for its final power thrust, discussions about the new device range from how many units it will sell to how developers can cash in with widgets to how its iPod-like features might cannibalize iPod sales.
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New iPods are expected to be the major news next Wednesday, but Apple will also announce a deal to let iPhone users buy ringtones through the iTunes Store, according to reports.
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On the Seeking Alpha blog, Paul Carton (ChangeWave Alliance) waxes bullish about the forthcoming iPhone. âItâs not often that we say âit rocksâ when analyzing a consumer device trend. But the findings of our latest ChangeWave cell phone survey invite extremes to describe the startling impact the Apple iPhone is having on the cellular industry.â One reason for the excitement: in a recent member survey, ânearly one-in-10 respondents (9%) say they are likely to buy the new iPhone once it becomes available in June.â
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A New York Times story published yesterday cited a report from Forrester Research analyst Josh Bernoff, which inferred that since the ratio of iTunes songs sold per iPod sold has been steadily rising, a disconnect could be occurring between the two products in a changing portable media market.
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Blog: Apple has held iPod events in early September for two straight years. Is it about to extend that streak?
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Forrester Research alarms journalists with a report concluding that Apple has sold only 22 songs through iTunes per iPod sold. People are eating it up -- but it misses the point. iTunes isn't meant to make money -- it's a security blanket  for users and record labels.
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Are Apple sales in trouble? Two research analysts have reported in recent days that Apple is aggressively cutting back production on iPods and iPhones, while increasing production on Mac computers.
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SAN FRANCISCO -- Apple Inc.'s price cut of its iPhone and new lineup of iPod players are expected to ring in healthy holiday sales, but Wall Street investors accustomed to Apple's meaty profit margins appear a bit disappointed.
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The number of iPhones manufactured by Apple may not be enough to meet customer demand when the smart phone goes on sale tomorrow, CEO Steve Jobs said.
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The music industry has long hoped  mobile phones will help turn around weak music sales, but music  executives privately fear the most obvious contender, the  iPhone, may give too much clout to Apple Inc., in shaping the  future of the fledgling mobile music market.
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Apple and U2 will reportedly team up to sell a special edition iPod promoting the band&#39;s forthcoming album. The publication cites sources close to U2 and says &quot;the digital music player will come preloaded
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Digg.com founder cites 'solid' source Apple's upcoming iPhone will go on sale next month with two memory capacities and no ties to a specific network, it has been claimed. The 'small as s**t' handset is based on a slider form-factor, it's said - presumably to better match the iPod design ethos.â¦
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Apple Inc.  will start  selling its iPhone on June 29, a debut that will test whether  the company's design success with Mac computers and iPod media  players can carry over into mobile handsets.
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Apple Computer Inc. (AAPL.O: Quote, Profile, Research) could decide to sell a lower-priced of its Macintosh computer to attract consumers already enamored of its iPod music player
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(InfoWorld) - Sales ofÂ Apple's iPhoneÂ and new iPods slated for release later this year will mark the end of cheap flash memory for a time, and that means users may see fewer bargains on older digital music players or bundled flash memory cards. The iPhone took off to a stellar start in its first weekend, asÂ users braved long linesÂ and the weather for a chance to buy one of the smartphones. Estimates vary, but at least one investment house, Goldman Sachs Group, believes sales the first weekend reached an astounding 700,000 units, and mainly on iPhones with 8GB of NAND flash memory on board for data storage. That's a lot more flash memory than the average handset, which normally comes with just 60MB on board and a slot for flash memory cards. The NAND flash memory market could see even more pressure later this year if Apple chooses to use the chips instead of hard disc drives in its new lineup of iPods. Apple is expected to release new iPods later this year, including one that can download songs wirelessly using Wi-Fi, and has a touchscreen system similar to the iPhone, analysts say. Such new devices will not only likely attract buying from Apple's usual fan base, but could also put pressure on the NAND flash memory chip market. The market for NAND Flash memory chips, which store songs, pictures, and other data in consumer electronics devices even when power is turned off, is in oversupply right now, so prices are relatively low and users can still find good deals on flash memory cards and see the usual price declines for older digital music players. If prices for NAND flash riseÂ later this year, it will indirectly affect users. Most likely, users might not see as many bargains on digital music players or mobile phones with built-in memory in the final months of the year, or perhaps fewer offers for free flash cards with the purchase of a new digital camera or other product. For example, if iPhone sales hit 5 million by the end of the year, with an average of 6GB per phone, that would be 30 million extra gigabytes of demand, said Mark Leatham, director for flash marketing at Kingston Technology Company, a flash product maker. Currently, the average mobile phone ships with around 60MB of flash on-board, so that 30 million is equivalent to around an extra 500 million phones hitting the market. NAND Flash prices are already rising, this just adds to the demand, he said. In fact, iPhone sales kicked off with such a bang that the handset itself could move NAND flash memory prices higher. iSuppli believes strong sales of the handset will continue, and the market researcher estimates iPhone shipments to exceed 4.5 million units this year, and then go on to reach more than 30 million by 2011, according to Tina Teng, wireless communications analyst at the company. Other market watchers, such as Goldman Sachs, have even more bullish shipment estimates for the iPhone. The investment banking firm forecasts iPhone sales could reach 5.25 million by the end of this year. The key for the flash industry is iPod sales, in addition to mobile phone sales, according to DRAMeXchange Technology. The fourth quarter is usually the strongest time of year for handset and iPod sales due to the holiday season, and Apple will need to start stocking up on flash memory in the third quarter to make sure its ready for such heavy demand. If, on top of expected iPhone and iPod demand, Apple puts out new iPods that use only flash memory, Apple could account for 25 percent of quarterly flash memory output, the industry researcher says. That kind of demand could really solve the glut problem in the industry and send flash memory prices higher. What's more troubling for users is this may be the start of a longer term trend with regard to higher NAND flash memory prices. Many analysts expect the iPhone to cause a few changes in the mobile phone industry, including the use of more multimedia applications on handsets, hence the need for more NAND flash memory for the storage of pictures, songs, video clips and other data. The amount of NAND flash memory used in handsets is expected to grow dramatically, according to the Semiconductor Industry Association, by a compound annual rate of more than 200 percent through 2010. NAND flash memory prices have been relatively tame for the past several months due to a glut in the industry. The iPhone, upcoming iPod products and the continued popularity of the chips as the storage of choice for digital cameras and other devices will likely ensure users don't see as many bargains in the future. Most analysts estimate that prices will start rising in the third quarter, which is now, and when companies start making such purchases in the memory chip industry, it only takes a few weeks to a month for the impact to trickle down through the market to end users. Â
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Apple is already selling iPod like hot cake. Now, the latest news in is that they have now sold more than 200 million songs on their iTunes digital music store!
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Apple Inc. will start selling its  iPhone on June 29, a debut that will test whether the company's  design success with Mac computers and iPod media players can  carry over into mobile handsets.