Tuesday, January 22,2008 @ 6:50pm
iPod touch: Apple's mobile WiFi platform
Apple today reported its latest financial results, revealing a record 22.1 million iPod sales over a three-month period. Busy holiday shoppers snapped up the company's portable players in droves, leading to a quarter that surpasses the record level iPod sales reported a year ago. "According to the latest data from NPD, iPod share of the U.S. market for MP3 players in the December quarter was consistent with the year-ago quarter," Oppenheimer said. The average selling price at $181 of the iPod was bolstered by the introduction of the iPod touch and revenue was up 17 percent year-over-year, the highest revenue growth rate in the last year. The company said that there may have been some cannibalization by the iPhone in the US, but that there was no evidence of such in Europe.
"In international markets, according to GFK, we continue to gain market share year-over-year in virtually all European and Asian countries," the executive continued.
Oppenheimer also spoke on the company's iPod touch, a full-screen multi-touch iPod and multimedia browser. The company looked to launch its "mainstrem mobile WiFi platform," which the company believes will help drive sales beyond the current music/media player markets. It said that its "strategic vision" of launching the new platform was achieved, but it admitted that high-end Touch probably sacrificed some unit sales at the current price point.
"One of our primary goals for this holiday season was to establish an entirely new type of iPod in the marketplace, the iPod touch," said Oppenheimer. "This new iPod has potential to grow the iPod from being just a music and video player into being the first mainstream Wi-Fi mobile platform running all kinds of mobile applications."
"Because of the higher cost associated with the large touch-screen, and more powerful processor required to run applications like Safari, this was the most expensive iPod we've brought to market for some time," Oppenheimer added. "So we have the challenge of establishing a completely new type of iPod at the top of the line, at a price point above where we've been for quite some time. And we succeeded."
Last week Apple announced a major software upgrade for the iPod touch with five mobile applications, as well as the ability to watch iTunes movie rentals.