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Article

Title: Keeping iPod Humming Along

Author: Wingfield, Nick Article Type: Product Analysis
Source: Wall Street Journal, v248 n12 pA2(1) Publication Date: Jul 15, 2006
  ISSN: 0193-2241
URL of Publication: http://www.wsj.com

Apple Computer, manufacturer of the portable music player iPod, is predicted to release either an iPod phone or a large-screen video iPod. Setting the trend in slim and sleek MP3 players, the device has dominated the industry, capturing over 70 percent of the United States market. The gadget has also served as Apples growth machine, accounting for 40 percent of the companys sales in the quarter ended April 1, 2006. IPods penetration of the market has been rapid and its growth has been so tremendous that the portable music segment is said to approach its point of saturation very soon. If this holds true then its sales is more likely to go down than up. It is a common behavior in the consumer market for a products sales to flatten out once a product goes into its maturity phase, and then slope downward afterwards. Market players are closely monitoring iPods sales activity for any sign of weakness, preparing for an attack. As a logical move, Apple may create a niche in the category such as an enhancement of an existing feature. The company can think of many ways to trigger a demand for a more novel version of the product. Forecasts have projected declining earnings, but an Apple spokesman has refused to comment on the issue. Chief Executive Steve Jobs is expected to unveil a new product at Apples annual developer conference.

Companies:
Apple Computer Inc

Products:
iPod

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