Apple Inc. (NASDAQ:AAPL)’s iPods were revolutionary in the early to mid 2000s when MP3s were just starting to replace compact discs. Now that it has been thirteen years since the iPod made its debut, it is evident Apple wants to replace the aging gadget with something fresh. Could that be the iWatch?
Analyst believes the end is near for the iPod
Christopher Caso, analyst for Susquehanna Financial Group, believes the highly anticipated iWatch will replace the iPod. He elaborated, “We, however, aren’t assuming a material impact to earnings from iWatch, since the iWatch would essentially replace the iPod in the consumer portion of Apple’s product lineup. While we don’t expect Apple Inc. (NASDAQ:AAPL) to discontinue iPod for some time, we also don’t expect an iPod refresh this year, and believe iPod could post year-over-year unit declines as a result as consumers purchasing iWatch as a substitute.”
For now, Apple Inc. (NASDAQ:AAPL) will continue to manufacture and sell iPods. The iWatch has yet to be confirmed but the device is likely to debut later this year. It is predicted many of the iWatch features will overlap with iPod features. Perhaps the biggest draw for the iWatch will be all the fitness and health features. Many fitness fans currently use iPods during their exercise routines, but it wouldn’t be surprising if they ditched the media players for a more fitness-oriented device.
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iPod sales see a downturn
Apple Inc. (NASDAQ:AAPL)’s chief executive officer Tim Cook claimed the iPod was a declining business and the sale numbers show he’s right. In 2008, Apple earned $8 billion from iPod sales but in 2013, that number decreased to $5 billion. Perhaps this decline has nothing to do with waning interest in MP3 players, maybe it is because Apple has not updated the iPod in nearly two years.
Whether or not Caso’s prediction comes true will remain to be seen. For now, Apple fans can rest assured that iPods are not going anywhere anytime soon.