Momina

Analyzing Apple's iPod Business

Great article. I love the sheer volume of research you’ve put into it. The fact that the iPod market is now saturated is very true, but for the US. The global market isn't saturated. When Apple gave the software upgrade for the iPod Touch, Asian users didn't get the goods. With the price cuts, the iPod may find itself a new home while iPhone conquers the US and Europe. Considering that the iPhone is already giving RIM’s Blackberry a hard time Apple’s overall growth is obviously not at stake. Like you said, Apple keeps iPod and iPhone separate. But consumers simply don't. When the market is truly inelastic, price changes whether upwards or downwards, simply don't affect demand. In the iPod’s case, I honestly believe, and figures would support, that a lot of demand that may have been the iPod’s share is going to the iPhone. Sure Apple has brought variants, and users such as yourself may have more than one iPod, but when we aggregate on massive levels, I don't think a lot of users want a dozen devices. The upgrades to the existing iPod seem like the most viable solution to help iPod sales. But expecting users to own multiple iPods, well I just don't see that happening. If the average user liked having 2-3 devices, manufacturers wouldn't be trying to pair a digital camera in every ordinary cell phone that came off the conveyer belt.