Apple CFO: iPod prices to decline

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Apple CFO: iPod prices to decline

Apple said yesterday that the average selling price of iPods will likely decline in the current quarter. “We expect them to be down a little bit in the June quarter,” Apple chief financial officer Peter Oppenheimer said during the company’s second quarter earnings conference call. This suggests that Apple expects to sell more lower-priced iPods, such as the 1GB iPod nano and iPod shuffle, and that a new high-end video iPod will either not be introduced during the quarter, or not significantly offset sales of lower-end models.

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Comments

1

When does this business quarter officially end?

Posted by ort on April 20, 2006 at 8:13 AM (PDT)

2

We are in the “June quarter,” (April, May, June) meaning it ends June 30.

Posted by david on April 20, 2006 at 8:53 AM (PDT)

3

If Apple follows the calendar quarters, then this quarter ends June 30th but I’m not sure when their business quarter ends since each company follows (I work for Disney and we are well into Q3 for Fiscal 2006)

Posted by Robert Sanders on April 20, 2006 at 8:54 AM (PDT)

4

That just means that the average selling price will be lower next quarter b/c it will be the first FULL quarter where 1GB nanos and lower priced shuffles are sold. It does not mean that there will be new price cuts.

Posted by Scott Worthington on April 20, 2006 at 2:02 PM (PDT)

5

Depending on if the 5G’s go down (and by how much, if at all).....might look at adding another iPod to my family here.

Posted by Huskerz85 on April 20, 2006 at 2:49 PM (PDT)

6

All that this article is actually saying is that Apple expects to sell more of their lower end models this quarter, does anyone know why it is titled, “iPod prices to decline”? Hmmm…

Posted by coco2 in Mexico on April 20, 2006 at 11:01 PM (PDT)

7

if the prices were to come down in the same manor that they have done in the past, i.e. refurbished minis selling for $180, then there is nothing to get too excited about. It would be great for customers if a 512mb Shuffle went down to $50 and a 5G iPod went down into the low $200’s range. Apple has a real opportunity to close out the competition even further by attracting customers to lower priced items, especially inexpensive flash players so pre-teens could get into the mix without having to save for too long or wait for the Holiday season. It would benefit th company and their iPod monopoly to have an iPod in as many pockets as possible. Can’t wait for the 6th gen!!

Posted by andrew Chasnoff on April 24, 2006 at 10:57 AM (PDT)

8

apple follows “normal” quarters, so the June 2006 quarter includes April, May & June.

Posted by brett on April 26, 2006 at 3:35 PM (PDT)

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