Sales of Apple’s video-enabled fifth-generation iPod are stronger than expected, according to one Wall Street analyst. “In our recent proprietary checks with industry and channel sources, we believe sales of 5G iPods are coming in ahead of expectations,” American Technology Research analyst Shaw Wu said in a research note provided to iLounge. “In some cases, in Apple’s own channels, including its physical stores and online store, we believe 5G iPods are surprisingly outselling even the very popular iPod nano.”
Wu said he believes that buyers of the new iPod are “mostly installed base users attracted to its high storage capacity, video capability, and reasonable price points,” while more mainstream customers are purchasing nanos. “We do not believe this trend is true through all distribution channels, particularly retail including Amazon.com, Best Buy, and CompUSA, where iPod nano remains the best seller,” he said.