Proving that some research firms actually know what they're talking about, Apple reported that holiday unit sales of the iPod rose marginally when compared to the same period the year prior.
Apple iPod holiday-quarter shipments came in at 22.1 million units - that's up about 5 percent from a year earlier. But that came in shy of forecasts by three analysts that Reuters tracks (which ranged from 22.4 million to 25 million). Sales of the iPhone reached 2.3 million, in line with most Wall Street estimates.
Revenue on the other hand is a different matter.
Apple said iPod revenue rose 17% from a year earlier - that's the strongest growth in a year, according to Apple execs. Much of this growth in revenue can be attributed to the debut of the $400 iPod Touch model which lifted average selling prices.
"This was the most expensive iPod we've introduced in some time," said Peter Oppenheimer, Apple's CFO. Cupertino thinks the iPod Touch belongs in a separate category other than a portable music player, saying the iPod Touch has a chance to "become the first mainstream mobile Wi-Fi platform."
Of course, as Silicon Alley Insider points out, revenue is where it counts and in that case the iPhone is really what Apple wants to focus on. "With revenue coming from both phone sales and kickbacks from carriers, iPhone customers are a lot more valuable to Apple than iPod customers," writes SAI. "So while iPod growth slows, it looks like Apple's cellphone division will be able to drive gadget sales growth."
And with iPhone (and WiFi-enabled iPod Touch) leading the way for Apple, how long do you think it will take for over-the-air capabilities to become a priority?
Yeah, you know what, who cares if these analysts were right. Apple sold 22,000,000 iPods in the last QUARTER. Nobody else even came close. I would venture to say that Apple sold more iPods last quarter than some other MP3 makers have ever sold.
The iPod is the Wi-Fi platform, not in the future, but right now. It is sad for me to say this, but you will see an iPod model with an HD tuner built in. Apple will extend Internet radio to the Touch and to the iPhone and make tagging available for both so that music can be purchased from the iTMS. I would much prefer that Apple go with Sirius or XM but I can't see Steve wanting another deal with an outside company. He had no choice with the iPhone because there is no free alternative. For music, HD would be subscription free as would net radio. Much less messy for Apple.
Apple would do a deal with Sirius and XM that would add tagging to a boombox. The thing would have to be Wi-Fi enabled and be detectable by iTunes but I would bet that they would do it. It would be a start. Who knows where it could go long term but it would sure be nice to find out.
Sirius and XM need to get off the pot and approach Apple about similar capabilities or stand aside and watch HD steal all of the thunder.
The Apple IPod will go the HD radio route simply because HD is a free service. For Apple to tie into Sirius-XM they (Apple) would want too much of the pie (profit) from the satrad companies so as to not make it a profitable venture. Look at what Apple got out of the cell phone companies. Now if the merged Sirius-XM becomes a free service by way of becoming advertising supported then satrad would have a good chance at getting Apple on board. Over 130 stations in one tidy package would be very enticing to Apple, but ask them to pay for it and you can forget it. It's Apple's way or the highway!
I highly doubt that apple would go the HD radio route (at least not anytime soon) with their iPods for many reasons.
the money they expect to make from iTunes sales would potentially drop even with a tag and buy later feature.
HD radio reception is not that great, especially if you were going to have the device in your pocket/backpack etc. (where the tagging feature would not be used anyway)
Apple tends to add services right when the tech world is ready for them. They held off on the iPhone for a long time since they knew it would bomb years ago, they just realeased the macbook air with among other things no optical drive since most people rarely use it anymore for anything.
The iPod touch it merely just the beginning of ipods with internet connectivity. Once the price of solid state memory drops (possibly due to a large demand for ipods) and 20 or 40 gb is fairly cheap, you can bet that all ipods will lose the wheel and move over. With any luck, this will occur around the time that WiMax comes around and Apple's next step will be providing iTunes radio station with a feature to buy a song you hear instantly directly to the iPod.
Apple can easily open it's own iRadio station, team up with all the major labels, and if they get ahold of all the live sporting events and traffic-weather, kill off SDARS without an afterthought.
It's painful to write that, but it CAN happen (not saying it *will* happen, but *can*).
Never underestimate Apple. They're going after the cell phone market and WiFi, they can go after the live content and rule that sector as well.