Merrill Lynch: iPod shuffle demand will outstrip supply | iLounge News

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Merrill Lynch: iPod shuffle demand will outstrip supply

Like the iPod mini a year ago, Merrill Lynch analyst Steven Milunovich believes demand for Apple’s iPod shuffle will outstrip supply. In a research note to clients today, Milunovich said the iPod shuffle could even outsell Apple’s other iPod models this quarter—he said the company is expected to sell 500,000 to 1 million hard drive-based iPods (4G, photo, mini), while the iPod shuffle’s manufacturer is reportedly making 1.2 to 1.5 million units. The analyst said he can see all of those being bought up and more.

Milunovich said new iPod customers and digital music newbies will make up the majority of iPod shuffle buyers. “Our experiences with the shuffle suggests likely strong demand from novices and new-to-iPod users,” wrote Milunovich. “Existing iPod owners may prefer the larger capacity and display of existing iPods, which makes for good market segmentation on Apple’s part. New-to-iPod users tell us the price points ($99 and $149) and ease of use are attractive.”

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Comments

1

A shortage?  Just when the new product is released?

GASP

No, really?

Did this analyst think this up all by himself?  What a leap of logic!  Apple would never short the supply to create hype.

EVERY.  FRIGGING.  TIME.

Posted by stark23x on January 19, 2005 at 9:24 PM (PDT)

2

How can people make claims that “The shuffle sucks, it’s gonna bomb” and that “Apple intentionally shorts the supply” simultaneously?  If you think it’s gonna suck, surely you can’t fault the manufacturer for not producing many of them.

Posted by SPThom on January 19, 2005 at 11:22 PM (PDT)

3

I can totally see why they’d be a short supply seeing as the apple store near me sold out of their 100 iPod shuffles in an hour.  I mean how many can apple make in such a short time.

Posted by MATRIXsjd in Burbank, Ca on January 19, 2005 at 11:55 PM (PDT)

4

Matrixsjd: Apple makes them beforehand.. Or at least they did with the Shuffle; that’s why the info leaked.

Posted by oplex on January 20, 2005 at 1:17 AM (PDT)

5

i really hope this kind of news doesn’t consume too much of peoples’ time. 

Posted by apple juice in USA on January 20, 2005 at 8:15 AM (PDT)

6

I somewhat feel that it could be the other way round.  The existing iPod owners will probably make up the majority of iPod shuffle owners this quarter.

Posted by iJeff on January 20, 2005 at 9:45 AM (PDT)

7

Ok, so people is going to spend $99 to buy an iPod shuffle instead of spending $399 for an iPod photo. Is that good for Apple? I think not.

Posted by Gary Young in U.S.A. on January 20, 2005 at 10:07 AM (PDT)

8

Ok, so people is going to spend $99 to buy an iPod shuffle instead of spending $399 for an iPod photo. Is that good for Apple? I think not.

Posted by Gary Young in U.S.A. on January 20, 2005 at 10:07 AM (PDT)

9

oplex: I do realize that apple makes them beforehand, but that still doesn’t mean that there wouldn’t be a shortage of them, many products that came before the iPod shuffle have had shortages right after release date so I not surprised that it’s no different with the shuffle.

Posted by MATRIXsjd in Burbank, Ca on January 20, 2005 at 10:30 AM (PDT)

10

Nothing new really. Sony and Nintendo go through this all the time with their consoles. It doesn’t say anything about the success of a product. The X Box was the fastest selling console ever the day itlaunched. Now it’s second fiddle to the PS2 after the excitement died down.

Posted by syciprider on January 20, 2005 at 10:44 PM (PDT)

11

when the iPod mini came out, despite its cuteness, i thought it would be a bomb… “who wouldn’t pay $50 more to get the 20GB iPod?”.

Ever since, Apple has proved me wrong. Hence, you can all say the iPod Shuffle sucks, but as a long-time user of a 30GB 3rd generation iPod, i’m finding myself using iTunes more and more to update my iPod’s Playlists (i now have it on automatic update - something i thought was inconvenient in the past)... and usually i listen to just one particualr playlist - my favourites… and yes, i have the songs shuffled, and i DON’T look at the screen as often as i did (i use the iPod remote a lot… but then again, i always have).

So if you think the iPod Shuffle will be a bomb, surely you haven’t owned an iPod long enough to know what features you’ll use most!

Posted by theanimaster in Bangkok on January 20, 2005 at 11:34 PM (PDT)

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