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iPod sales to reach $1 billion this year

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By Dennis Lloyd

Publisher, iLounge
Published: Tuesday, March 2, 2004
News Categories: Apple

“In a research report Monday, he said the success of the iPod demonstrates Apple’s “tech know-how and strong brand” and could make the company “relevant again.”

And the iPod isn’t expected to be small business for Apple. Milunovich estimates iPod’s revenue to come in around $1 billion this year, contributing 15 cents to per-share earnings. By fiscal year 2006, the analyst said revenue for the iPod could double to $2 billion, adding 25 cents to the EPS.”

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Comments

1

I contributed my $399 to that total.

Posted by schaaking in Minneapolis on March 2, 2004 at 8:21 AM (PDT)

2

I love that line - “could make the company relevant again”.

Umm… I think Apple has been pretty damn relevant since the day the company was launched. When pinheads make asinine comments like that it makes you realize how truly lemming like the general public is.

Posted by Chris on March 2, 2004 at 9:32 AM (PDT)

3

Chris, in 1980 Apple was the #1 PC computer company in the world. It’s been a long, slow slide since then, and quite painful to watch. Selling cheap gadgets won’t rescue Apple from increasing irrelevance. They need a big hit with big iron with big fat profit margins.

“Today, more than a quarter-century after its founding, it commands just 2% of the $180 billion worldwide market for PCs.”

“If Apple is really the brains of the industry—if its products are so much better than Microsoft’s or Dell’s or IBM’s or Hewlett-Packard’s—then why is the company so damned small?”

“The father of the PC—and, remember, the industry’s number-one vendor in 1980—has since sunk to a lowly ninth, behind competitors Dell, Hewlett-Packard, and IBM, just for starters. Sadly, Apple is also behind such no-namers as Acer (seventh) and Legend (eighth). So much for innovation and creativity.”

Posted by pinheads a go go on March 2, 2004 at 10:40 AM (PDT)

4

I’ve kind of had a related question. If Mac OS is so much better than Windows, then why not port it to x86 architecture and let it compete? I’d use it, I don’t use a Mac now because I just don’t think Apple hardware is worth the premium that they charge.

Posted by ronco on March 2, 2004 at 11:13 AM (PDT)

5

Umm, pinheads a go go, almost 100% of the innovation in the PC world is attributed to Apple.  That has made them relevant and invaluable from day one.

I mean, look at the iPod—what you term as a “cheap gadget”—everyone is rushing to try to copy it or do better than it.  Every review of any other MP3 device must make mention of how it relates to the iPod. 

To say that a company is irrelevant based on its market share is silly.  It’s what the company contributes to its industry and the world.

P.S.—the last time my OS X - G4 mac crashed and I had to reboot it was…  Never.

Posted by dfd on March 2, 2004 at 11:30 AM (PDT)

6

As a lifelong PC user (well since 1984, anyway), and an owner of a 40GB iPod and a mini, I can appreciate Apple’s contribution to the world of computers. However, as long as I can build a PC that lays the smack down on a G5 for under $1000, the Apple will never suceed in the the numbers that the PC has. I even think that OSX.3 is nicer than my XPPro, but I cannot justify spending the extra cash. Now, just multiply this feeling by UNTOLD MILLION of computer users across the globe.

It’s all about economics, not to mention the INCREDIBLE leverage that the PC world has over the mac.

Open the platform. Make it so I can build my own Mac with ubiquitous componets, and I’ll do it in a second!

Posted by steve on March 2, 2004 at 12:19 PM (PDT)

7

People wonder how Apple succeeds.

They take the high-road, use the high quality stuff, and charge up the a$$ for it. THAT is why os X is money, because it runs on the best stuff. They make the biggest profit margins out of any company I’ve ever heard of (besides maybe anyone selling CDs). That’s how they succeed. They charge a buttload.

Don’t open it up, it’ll only screw things up. Just makes things a bit more affordable.

Gotta give ‘em credit on their laptops though. smile

Posted by Caleb on March 2, 2004 at 12:32 PM (PDT)

8

I look at it like this:

What do you think Ferrari’s market share is? Jaguar’s? Rolls Royce? Do you think that they freak out that those 3 companies combined don’t probably hold more than 1/4 of 1% of the autos sold in this world?

The Macintosh is an awesome platform. For all of you PC users that carp about price - I COULDN’T CARE LESS! I choose to buy a Mac because I believe in the axiom - “you get what you pay for”. Usually, when buying more expensive items there is a reason - and the same holds true for Macintosh. You pay for quality, innovation, and great design as well as incredible integration with it’s software.

For me, there is not one piece of software that I use that is not available for both Mac and PC’s. (aside from Final Cut Pro). I am a graphic artist, web designer, and musician. The Macintosh holds the market in all of those categories - and easily outdoes the PC in all of those categories. when it comes to any creative field - video, music, imaging, graphics - the Macintosh is not only the leader, it is THE industry standard.

The funny thing is that the only ones who seem to care so much about market share is everyone BUT Apple. Do you see Apple closing their doors? So WHO CARES if they only have 2% of the market - WHY THE F**K DOES THAT EVEN MATTER? As long as Apple is in business I will buying Macs. And for all of you that have sung their death song so many times - well, don’t you look STUPID!! You have NEVER, EVER been right!

Let me state one other thing - I use BOTH everyday. I love PC’s - for games and file sharing. I like XP, I like Windows 2k.

Posted by Chris on March 2, 2004 at 12:43 PM (PDT)

9

BTW - hey Steve, you wrote “However, as long as I can build a PC that lays the smack down on a G5 for under $1000”

Umm, you heard about the guy at Virginia tech that built the worlds number 3 supercomputer entirely on Macs right? You know he could have used anything he wanted but one of the reasons he chose Mac because of the cost/performance ratio? As in he couldn’t come close to the bang for his buck in the PC world as he did with the Mac?

here - read this: http://www.apple.com/education/science/profiles/vatech/

Posted by Chris on March 2, 2004 at 12:52 PM (PDT)

10

Heres a thought
I think Steves right, Im a diehard Apple fan, I love Apple to the core, up and downs you name it Amelio, sculley, Jobs every time I hear about market share I shake a little because even when people like Chris dont matter at all, it means something… it measures how many people are buying a PC box or choose the bright side and fight for a mac, lets say first time users, and I say fight for because its a fight (you know money dont fall from trees) Im a graphic artist aswell and I knew that the a pc wouldnt be the answer when you begin so I had to save, and work my ### off to get the Mac I wanted and Im proud about it because it was so hard to get. How many people you think will break their backs to get the tools they need to do things insanely great, when they can get cheap tools to do things ok well? (but not so fast cause the PC world now can do as much as the Macs, and its cheaper) and they wont switch now that they are used to it (even that they have to reinstall once and twice over and over again, and they dont care cause thats the way in PC, amazingly ther are used to it, they dont fight for the PC they fight the PC) now that I have grown professionally and now I can afford any Mac I want, I see that old Mac (still in use) that paid itself many times I understand the massive market cant afford Macs cause in simple terms are just expensive in the PC user mind you can buy 3 pcs insted a Mac for the professional job. I know that our market its small and its geting smaller as the world masses get poor and just some are wealthy enough to pay the price. it would be silly build your own Mac but how about build to order in your nearest Apple store

I think Apple should take the risk and be way more agrssive in their pricing to compete head to head with the PC world, I mean you have a world trusted brand, and confidence in your products, I would gladly buy 3 Macs instead of 3 PCs, wouldntyou Cris?

Posted by osmac on March 2, 2004 at 3:08 PM (PDT)

11

I can understand how some PC users feel frustrated that they are unable to build a mac with hardware components themselves.

But rather than look back - lets look forward. Can anyone tell me how many PC guys build their own laptops with their own hardware components??

If this is the year of the laptop - and laptop market share continues to mow down desktop sales, then won’t this become irrelevant 5 years down the tracK?

Does a Sony Viao or IBM ThinkPad give you the same hardware flexibilities as a desktop? Can you upgrade them when they are 3 years old? (this is a question).

I am wondering if evolution will bring Apple back into the game.

Mobility is going to be the biggest thing. Like iPods, our digital lifestyle is going to follow us around whereever we may be.

Have a think.

Posted by Stevo on March 3, 2004 at 12:13 AM (PDT)

12

I am a computer tech and have supported both Macintosh & Windows & Netware.  I was much happier as a Macintosh technician.  In fact I am leaving the computer industry because I hate Windows.

When I look into my crystal ball, I see rough waters for Windows in the years to come.  Why?  All of the non Micro$oft major players are unix based or soon will be.  Macintosh, Linux, and soon to be Netware.  I wouldn’t be surprised if software written forLlinux will one day easily port over to Mac OS X.x.

In fact I think Apple and Novell should get together and make easy porting a reality.  This would allow organizations to integrate Macs into their Linux shops with relative ease.  This would then allow the graphics people that need Macs to use them, and the business people who don’t to use a cheaper Linux machine.

In case you didn’t know, Novell has purchased multiple Linux companies and is readying a Linux desktop to compete with Windows.

Posted by jfk99 on May 18, 2004 at 8:55 AM (PDT)

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