One of the most glorious of all Apple Inc’s successes so far, has been its tablet device, the Apple iPad, so much so that, this incredibly useful gadget crossed the one million sales mark in the very first month of its launch. However, as the iPad sales surges to incredible figures and the company celebrates this success, there is now cause for concern in relation to the sales figures of the Apple iPod. As per recent numbers released by the NPD group, it has been found that, the success of the iPad sales has been at the cost of a declining iPod sales.
For the month of April, the iPod sales have dipped 17% as against the same time period, last year. This slump is even bitter than the 9% decrease predicted by Gene Munster of the financial think tank, Piper Jaffray. Furthermore, for the month of June the sales of the iPod have been predicted to be between a figure of 9 to 10 million, which amounts to a massive deficit of -12% to -2% for year-over-year declines. However, it seems that, things are after all balancing out for Apple Inc. as the sales of Macs is comparatively quite encouraging, with an increase of 39% being recorded for the month of April this year. Mr. Munster strongly believes that, the iPad is in fact the reason for the diminishing sales of the iPod. Yet, it doesn’t look like, Apple is worried in any manner, because the iPad sales are far more beneficial for the company than that of the iPod for the sole reason that, the iPad’s price tag is nearly four times than that of Apple iPod.
According to Mr. Munster,
“Given the ASP (4x) and margin profile of the iPad, we see this as a net positive for Apple’s business. We believe in the long run Mac cannibalization will exist, but will be minimal. Apple has successfully limited the iPad functionality to primarily content consumption, vs. content creation on a Mac. And relative to the iPod, the physical size of an iPad provides a meaningfully different value proposition (portability vs. screen size).”
Via Business Insider