Analyst: Apple still in ‘early stages’ of iPod expansion
An analyst with Credit Suisse believes future growth of the iPod looks strong. “We believe Apple is still in the early stages of its product expansion and that the company can grow its iPod units at least 20% for the foreseeable future,” analyst Robert Sempl said in a report to clients. The analyst’s prediction is based on the relatively low penetration rate for the iPod, estimated at about 10% of PC users, or an “active installed base” of about 40 million units worldwide. Sempl sees Europe as ripe for further growth. “Europe remains the biggest opportunity for Apple, in our opinion, based on its penetration rate of only 7.1% and similar demographics and buying patterns to the U.S.,” he said. “However, the company has only demonstrated a moderate inclination to compete in the region, having opened only six retail stores in the U.K. and nowhere else in the region, choosing instead to leverage reseller partners.”
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