Merrill Lynch: iPod shuffle could take top spot in flash market soon
In a research note to clients on Wednesday, Merrill Lynch analyst Steven Milunovich said Apple’s new iPod shuffle could take the top position in the flash-based MP3 player market in the next few quarters. “If Apple can ramp up production, Apple could take the No. 1 position in the flash market in the next couple of quarters. If Apple hits 5 percent share this quarter, that could be 300,000 units,” Milunovich said. “If it takes off, the number could be much higher, possibly passing the 1million mark.”
Milunovich pointed out that Apple currently has 65 percent of the total digital music player market, compared to flash’s 29 percent share. According to research from IDC, the flash player market has three times the units as the hard-disk drive-based (HDD) music player market, but about the same revenue ($2.3-2.5 billion). “Now that 4.5 million HDD iPods were sold last quarter (possibly 2 million in December), it was time for Apple to attack the next market with a lower cost flash-based iPod shuffle,” the analyst said.
Milunovich dismissed the notion that consumers will balk at the lack of a display on the iPod shuffle. “Some have indicated that the lack of a display will be an issue, but we are less concerned,” he said. “The $99 version holds 120 songs and the $149 holds 240—does one really need a display with that few songs? We believe this is a better option than a 60-song version with a display for $149. If a display is need then one needs to move up to he HDD iPods at $249+. We believe this also ensures that cannibalization will be limited while snaring more in the iTune/iPod net.”
- Apple to drop first-gen Apple TV, iPod classic support as of Sept 8th
- Apple releases iOS 8.4.1, iTunes 12.2.2
- Apple releases fifth iOS 9 beta to developers
- Apple releases second iOS 8.4.1 beta to developers
- Apple releases second iOS 9 public beta
- Home Sharing for Music returns in iOS 9 beta 4
- Report: New Apple TV will feature universal search, cost $149
- Retrial for damages in Apple patent case set for March or April
- Google omits HealthKit support from Android Wear iOS app
- Apple eyed Bill Simmons for exclusive podcast deal
- Amazon Video app update lets Prime users download movies, TV shows for offline viewing
- Report: Apple considering move into original programming
- Malware steals 225,000+ Apple account logins from jailbroken iPhones
- Apple announces partnership with Cisco for iOS business users
- Report: New Apple TV to support Bluetooth gaming controllers
- Google releases iOS app that links some Android Wear watches to newer iPhones
- Odoyo KickStand Charging Dock for Apple Watch
- Tech21 Evo Mesh Sport for iPhone 6 and Evo Elite for iPhone 6 Plus
- Thonet & Vander Koloss Bluetooth Speaker
- iHome iSP5 SmartPlug
- Spigen Apple Watch Nightstand S350
- DODOcase Lorna iPhone Wallet Case for iPhone 6 Plus
- SwitchEasy Blocks Customizable Dock Building Set for Apple Watch
- DODOcase Maritime Collection Multi-Angle Case for iPad Air 2
- Kanex iPhone ChargeSync Dock for iPhone 6 + iPhone 6 Plus
- Onanoff Sound Cover for iPad Air + iPad Air 2
- A First Look at iOS 9’s Transit in Apple Maps (Updated for watchOS 2)
- Instant Expert: Secrets & Features of iTunes 12.2
- Instant Expert: Secrets & Features of iOS 8.4 + Apple Music
- CE Week 2015: IK Multimedia, Monowear’s Apple Watch bands + More
- Live From CE Week 2015: Brand New iPad, iPhone + Mac Accessories!
- Opinion: The ‘Grand Experiment’ of shifting to Google Photos
- Will removing a credit card from Safari also remove it from Apple Pay?
- Can I mute Handoff calls coming into my Mac from my iPhone?
- How do I keep my iPhone calls from ringing on my Mac?
- Why doesn’t Traffic show up on my Today Notifications Screen?