iPods still a part of Apple's big picture

31.08.2010

But analysts suggest the habits of Colvin's airline seatmates may offer a clue about the future of Apple's iPod plans, with the touch established as the flagship of the product line while smaller, cheaper shuffles and nanos remain for entry-level consumers and "secondary" uses.

And what of the venerable iPod classic, the one remaining hard drive-based music player in Apple's lineup Observers point out that line is still profitable, but its days of growth are over. Everybody who wanted an iPod, it seems, has one by now.

"It's a nice business, and it's not going away," added Roger Kay, president of Endpoint Technologies Associates. "But if I was a manager at Apple and was told 'You've got the iPod business,' I don't know how happy I would be."

Apple has kept the traditional iPod fresh and in demand over the years by adding features and tweaking the design. Analysts say there is still work that can be done on that front: FM radios--added to the nano as part of last year's refresh--could be expanded to the entire line. Wi-fi capabilities could be added, both to offer iTunes sales directly to devices and to take advantage of Apple's purchase of cloud-music purveyor Lala. Television service is also a possibility.

"That's probably the next thing they'll do across the line, with the exception of the shuffle, is to integrate the TV experience into these devices," said Rob Enderle, principal analyst for the Enderle Group.

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