BusinessWeek’s Alex Salkever is expecting Apple to unveil a flash memory-based iPod that will hit shelves “sometime next year.” Salkever says the flash iPods would sell for significantly less than the current hard drive-based iPods, allowing Apple to reach new consumers who balk at the higher prices. “iPod, which clocked 3.2 million units sold in the last quarter, is logging an annual sales rate of roughly 13 million units.
That leaves Apple plenty of room to maneuver if it wants to assault the flash player market… If Apple could sell just 5 million flash IPods in the next year at prices between $120 and $199, that would likely generate revenues of between $600 million and $1 billion. It would certainly push Apple closer to its goal of rejoining the $10 billion revenue club in the next two years.
Add it all up, and the flash iPod hardly looks like a flash in the pan.”
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