Analyst: Yahoo music service will not impact iPod sales

Updated

Piper Jaffray senior analyst Gene Munster said today that he does not think sales of the iPod will be affected by Yahoo’s new subscription-based music service offerings. “We do not anticipate the market share of the iPod will be meaningfully impacted by the emergence of Yahoo! and other music subscription services,” Munster said in a research note obtained by iLounge. “In addition, if subscription services become more successful, we believe that by year end Apple will introduce its own version of a subscription based music service.”

“We have seen over the last two years that the success of online music services is driven by compatible devices,” Munster said. “As a datapoint, despite new music services in the past year, Apple has maintained its ~80% market share in the portable audio device market. In other words, the risk to Apple is a killer new MP3 player, not a new online music service.” Munster also reiterated his that by the end of 2005 more than 35 million iPods will have shipped.

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LC Angell

LC Angell was a senior editor at iLounge. Angell is known for her work on various aspects of the Apple ecosystem, including iPhone, iPad, and iPod. In his role at iLounge, Angell was responsible for a wide range of editorial content, including reviews, buyer's guides, news, and features.