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pgrote

Wow. This stood out:

"Apple sold 7.7 million iPods, a 15 percent unit decline from the year-ago quarter."

I wonder why the decline and if there is a concern?

Everyone that wants one has one? More competitors? Everyone who has an iPod transitioning to the iPhone?

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iPod sales have been declining year over year for several years now: http://cdnmo.coveritlive.com/media/image/201204/php3nZ4YDapp...

Apple has repeatedly said they are not worried about this on their conference calls. The consensus is that the iPhone has been cannibalizing sales since its release.

See: http://blog.fraserkelton.com/2011/09/24/cannibalize-yourself...

where Steve Jobs is quoted as saying if there’s going to be cannibalization of Apple, they want it to be by Apple.

Not really a concern. Apple planned on the iPhone/iPod Touch/iPad cannibalizing their iPod line. This is how Apple has stayed ahead. It's better to disrupt your product than have a competitor do it to you.

This is why its important to fund R&D at companies. It enables exploration and innovation, to create the next disruption and/or continuous innovative use of products.

Anecdotally - none of my friends (or myself) carry iPods anymore. Nearly everyone I know uses their smart phone. I think most iPod sales are now sold to children as stand-ins until they have a smartphone of their own.

Or people who refuse to pay exorbitant rates (in comparison) for internet access to communications companies who on one hand claim the last mile is the bottleneck and expensive, yet refuse to invest in infrastructure for their wireless towers. AT&T and Verizon in particular.

you don't have to get a dumbphone just because you don't want to get a data plan. wifi is pretty ubiquitous, and if you don't have a data plan your smartphone will still work as an mp3 player and do a bunch of other cool stuff.

I think the parent was suggesting there are a lot of people who are happy to purchase an iPod Touch for much less than the cost of an unlocked iPhone- the iPod Touch has most of the functionality of an iPhone minus the cellular capability. In fact, add skype+wiFi, and it makes a pretty good phone as well.

FWIW signing on to either AT&T or Verizon's network with any recent iPhone will "automatically" enroll you in a data plan if you don't have one. There really is no way to have a data-free iPhone, I've tried.

Pay cash and use it on T-Mobile? That's what I did. AT&T or any other GSM prepaid should also work.

I think the 35.1 million iPhone activations had something to do with that. The iPod touch is simply a gateway drug to the iPhone.

> Everyone who has an iPod transitioning to the iPhone?

Bingo, although I think it's more like "everyone who has an iPhone (or any smartphone, really) doesn't feel the need to also have an iPod".

Anecdotally: My wife recently wanted to buy an iPod to replace her old MP3 player. For 100€ more you get an iPod with phone capabilities called iPhone 3GS. So she got one of those instead and replaced her old phone as well.

I'd bet on a transition to the iphone

could be saturation, but i also think ipads might be taking some of those sales.

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