News
58% of retailers recommend iPod; Sales to ‘reaccelerate’
Piper Jaffray analyst Gene Munster said on Friday that Apple “will likely not show significant upside for the iPod in the June quarter” with sales of 5.5 million units, but that the iPod business will “reaccelerate” in the seasonally strong September and December quarters.
Munster’s positive expectations are based on results from a recent survey of MP3 player sales reps at 100 U.S. retail stores (non-Apple), which on average 58% of recommended the purchase of an iPod over a competing device.
Munster said in a research note obtained by iLounge that 63% of sales reps recommend an iPod model in the 5GB or larger category, in most cases recommending the 6GB iPod mini or 20GB iPod. In the 5GB or less category, 52% of sales reps recommend an iPod (4GB iPod mini or iPod shuffle).
The analyst said that 32% of salespeople who recommend the iPod do so because of the device’s ease of use. Munster said that 21% see the “massive eco-system” of iPod accessories as the top reason to own an iPod.
Meanwhile, the top reason given by 25% of sales reps for recommending something other than an iPod was its lack of an FM receiver. Approximately 14% said its close integration with iTunes is too limiting, and an another 14% said there are some players that have a better design or are smaller than the iPod.
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1
These studies show either exact information to is what we are dealing with the ipods or just some stupid opinions of store owners and employees.
Posted by M Bargo in Chicago, IL on June 24, 2005 at 8:22 AM (PST)
2
I find that at big box retailers Future Shop (owned by Best Buy) and the life the iPod is hardly ever recomended first. I tend to hang around the iPod section a bit just to see how it goes and any time I’ve ever seen someone come in for an MP3 player they bring up some other brand.
My feeling is that the big box retailers make more in mark up on something like a Dell or Creative player than an iPod. Thus they tend to push the lower end players.
Posted by Jeffery Simpson on June 24, 2005 at 3:37 PM (PST)
3
Since the other brands are selling so shabby, they are probably pretty desperate in throwing a lot of behind the scenes marketing - many retailers will set up an incentive program for clerks and of course, have ‘mystery shoppers’ drop by anad ask why mp3 player is best - recommending X brand might earn them $10 bucks or something - earn enough sales and they might win an XBox. Or they have a “training session” where they pay them each clerk $25 to listen to their spiel and then a drawing for a computer or something afterwards. I’m sure Rio and Creative are employing these tactics while Apple could care less. It also costs serious money to be included in flyers and or store displays so when manufacturers pony up, store managers tell clerks they MUST push this product - as part of the deal - again, Apple could care less. The main reaon you buy an mp3 player is BECAUSE FM radio is crappy - why would you want a static filled replay of ads and idiotic banter? If the sales numbers are to be trusted, clearly, most consumers are smarter than clerks ...
Posted by jbelkin on June 24, 2005 at 5:53 PM (PST)
4
Nobody likes FM in the US!!! That’s the honest truth. FM is terrible.
Posted by minty on June 26, 2005 at 8:17 AM (PST)