Analyst: Early iPod nano sales ‘good, not great’ | iLounge News

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Analyst: Early iPod nano sales ‘good, not great’

Sales of Apple’s new iPod nano were lower than expected on the first weekend it was available, a Wall Street analyst said Tuesday. American Technology Research analyst Shaw Wu reported that a number of Apple retail stores only sold between 200 and 500 of their initial nano allocation of between 1,800 and 2,500 units.

“We believe iPod nano may cause sticker shock as consumers are not getting more storage for their dollar as they are accustomed to,” Wu said in a research report. “In contrast, iPod mini has superior storage capacity (4 gigabytes vs. 2 gigabytes at $199 and 6 gigabytes vs. 4 gigabytes at $249) and better battery life—18 hrs vs. 14 hours. We may be alone at this point, but we believe matching the super success of iPod mini may be a tough act for iPod nano to follow without some changes.”

Wu said Apple may need to increase the storage capacity of the nano or cut its price by $50. The analyst cautioned, however, that the iPod nano “has only started shipping since Sept. 7, and thus it may be difficult to draw a trend with only six days of data.”

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Comments

21

I, for one, agree that it is too early to tell.
However I will say that people are getting used to having ipods have competitive pricing, and they are used to getting more, not less, for their money as time goes on.  Apple has to sell this a little more on the coolness factor than on the good deal factor (even though $250 is a steal for 4gigs of flash, but most of the public probably doesnt even know what flash is).  They have to sell the nano on cooler design and not better specs to get the $$$.

I personally think they are sweet but since I have a 1gig shuffle (no, I dont need a screen for jogging/biking) and a 4th gen 20gig B&W for everything else ( and no, I dont need a color screen, besides I like my super slim ipod)

my two cents

Posted by thebrain on September 13, 2005 at 11:31 PM (CDT)

22

Not entirely true, Eric J. When I was at the Apple Store near my house, I saw that many people were buying the 2GB nanos, just because they were the only ones in stock. Although people don’t favor them, they still are selling them either way.

Posted by M Bargo in Chicago, IL on September 13, 2005 at 11:33 PM (CDT)

23

The 4GB one is selling…The Apple site use to list 1-3 business days for both, now it’s 24 hours for the 2 GB one and 5-7 business days for the 4GB version.  With just a $50 difference for twice the capacity, it’s hard not to see why.

And I look at these analysts numbers with a grain of salt, he may just surveyed one or two Apple stores and tried to interpelate his data from there…  Probably not representative of the nationwide picture, and there had been such report too before a quarter or two ago, only to see Apple blows away all numbers when it releases its quarterly report.  So I’ll wait for Apple’s own numbers before making judgment if the Nano is selling good or great.

And finally, it’s also possible that someone is trying to take away some wind out of Apple’s sail.  Many nalayst are known to be funded by competing companies, so I would not believe in it 100%.

Posted by WilliamC in Philippines on September 13, 2005 at 11:39 PM (CDT)

24

Most Apple stores don’t have full nano posters, the TV ads are not in wide circulation, the availability of 4G models is extremely limitted…most people will begin to find out about the nano through the glowing tech reviews in time for the holidays, when all the accessories are available.

The price for 4G of flash mem and a color screen is quite aggresive, and once all the skins are available for the kids the sleek appeal will begin to cross to the younger sector. The monochrome mini definitely is sturdier and holds up to fingerprints better, but the older kids will desire the nano’s more adult appeal and the color picture capabilities.

The nano looks to be another winner for Apple….this analyst is nuts!

Posted by Thomas Affinito on September 14, 2005 at 12:02 AM (CDT)

25

Well it is too little a sample if he only went to a couple of Apple stores.

But I’ve seen those ads everywhere so they are spending money for TV air time right now.

As the Street.com story alluded to, there could be other factors, like high gas prices making people spend less this Holiday season and competing must-have gifts this Xmas like the PSP and the Xbox 360.

If gas prices were the same as they were a year ago, then a lot more people would be able to buy all these things.  As it is, a lot of people may be forced to choose only one.

Posted by wco81 on September 14, 2005 at 12:49 AM (CDT)

26

I was in my local Apple store on Saturday and you had to get in line to hold one of the eight or so Nanos on display.  And they were completely sold out of everything except the 2GB models.  He said the 4GB models sold out within 3 hours of them arriving.

Posted by Jon on September 14, 2005 at 1:23 AM (CDT)

27

on saturday september 10 - right after the Nano launch - I waited in line for 30 minutes only to find out that they are all sold out of the 4g iPod Nano in both stores in the Seattle area… and this is microsoft country!

Posted by seattlite on September 14, 2005 at 1:26 AM (CDT)

28

Good thing i got mine the next @ the apple store… but the color black is a hot seller which is leading sales to a hault till they come back

Posted by AZ on September 14, 2005 at 1:57 AM (CDT)

29

We bought the 4GB white on Friday evening (9th) at one of the local Apple stores, two days after the official introduction. The black 4GB was already sold out, but there were a sizable number of black 2GB units still on the shelf behind the register that day, and almost twice as many white 2GB units, with about a dozen white 4GBs left. After playing with my wife’s white nano for a couple of hours, I ordered the black 4GB later that night from the online store, and went ahead and paid for second-day service; according to FedEx it should be in hand tomorrow, er, I mean today, the 14th.

seattlite: there are four stores in the immediate Seattle area. According to the staffer at the University Village store, the black 4GB was all gone by 6PM Friday at all four locations.

Posted by flatline response on September 14, 2005 at 3:09 AM (CDT)

30

Apple should have known about white versus black!  I was checking the trade-in value of my car the other day on the Edmunds site.  The value was reduced $75 for being white!  I bought a black 4G for my wife.

My only thought is how is the black going to look with one of the colored silicone cases.  I think apple will start pitching these together to clear the white stock.

At my apple store, there were NO nanos on display on Sept. 8th.  They were all at the back of the store.  Let’s face it, the introduction was not widespread.  Even if it was, and I have seen the commercials, pictures and video do not compare to holding one.  It is every bit the sensation of holding one of those large matchbooks.  As word filters out about this, and more people hold one, sales will take off.

This will be THE gotta have gift this holiday - for better or worse.  Expect to hear stories of people trampling over one another - hey they already did it for 4 year-old Mac laptops.

Posted by rochester on September 14, 2005 at 8:04 AM (CDT)

31

The mini is the most popular mp3 player in the world that is available everyehere and people expect this to change in 4 days?

Give it time not everyone reads Apples sie religiously wait till it hits the street and word gets around it’ll outsell the mini.

The major problem is they really need to show that the thing wont snap if you sit on it because it really does look too fragile.

Posted by Sukotsu on September 14, 2005 at 8:27 AM (CDT)

32

some people just won’t accept it…
of course, the nano will outsell the mini…
apple discountinued the mini - what do you expect?

i say, GIVE us what we want and not TELL us want we want!!!!
:b

Posted by iJay on September 14, 2005 at 11:21 AM (CDT)

33

correction:
from: i say, GIVE us what we want and not TELL us want we want!!!!

to: i say, GIVE us what we want and not TELL us what we want!!!!

:b
:b

Posted by iJay on September 14, 2005 at 11:25 AM (CDT)

34

Wu, is a typical journalist who is intend on creating interest in his own analysis by acentuating certain fact while omitting others. Although he points out that the ipod mini has higher storage capacity and batt. life at the given price, he fails to mention that the ipod nano is less than half the size and weight of the mini and yet sports a colour display. He also decided to omit the fact that flash memory are more expensive than their hdd counterparts as well as being faster and more durable.

The wait times times for the 4GB nano have been extended to 5-7 now, compared to an initial wait time of 1-3 day. That should speak for itself. Also the Black nano climbed the amazon mp3 and digital audio charts to no. 8.

Stop with the suggestive journalism. Let’s wait and see what the general public thinks.

As far as the UK market is concern, we haven’t seen any tv ads yet.

Posted by James W on September 14, 2005 at 1:59 PM (CDT)

35

The irony is that I think Wu is one of the better analysts, not that that’s necessarily saying very much.

I believe the crux of the issue is that the nano didn’t hit the ground running like the Shuffle did when that iPod was initially released. The initial wait for that player was incredible, even with its limitations. But being Apple’s first flash-mem DAP people just had to have it.  This time around I’ve seen and read a fair bit of reluctance over the newest iPod. There’s been a lot of talk from consumers over the loss of 2GB of storage at the same price points against both Minis; when you get down to it, for many people when someone chops back a key specification by 1/2 and 1/3, respectively, that’s a lot of value no longer there that consumers are obviously going to openly question.

While I personally feel the nano isn’t really a direct replacement for the Mini, many others would disagree since it’s blatantly obvious which model line is no longer in Apple’s lineup with the introduction of the nano. But for me this player is the embodiment of the flash player that’s as close to perfect and better than anything that’s been sold previously in the flash mem side (aside from no FM and no user-replaceable battery), and that’s simply something the HD Mini can’t match.

Posted by flatline response on September 14, 2005 at 6:22 PM (CDT)

36

My neice just got a black nano. It’s *very* similar to the black irivers, very sleek.

I guess black is the new white, and the old dogma of ipod white purity is finally gone. The mini put it on life support and the black nano finally drives a stake through its heart.

Posted by Demosthenes on September 15, 2005 at 9:55 AM (CDT)

37

The black nano’s are out of stock at every store I went to, and the 4GB white ones are too. Target had about 50 white 2GB’s though.

Apple should have looked at the two together and would have immediately seen that the black would outsell.

Posted by iPodlover on September 24, 2005 at 11:18 PM (CDT)

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