★ “Could the iPod Be On Its Deathbed?”

via Wired:

If sales of Apple’s iPod are any indication, the heyday of the MP3 player is over and done with.

UH-OH

iPod sales have been steadily declining since their peak at 22.7 million in December 2008, and analysts estimate another 7.2 percent drop over the quarter that just ended.

but then

Apple still commands 70 percent of the MP3 player market, but it’s clear that other mobile devices, namely smartphones and tablets, can do the job of an MP3 player (while performing a myriad of other functions, too).

and

Regardless, Apple still has a solid spot as one of the top three smartphone manufacturers in the United States. And as more and more people lay their MP3 players to rest, they’ll be turning to smartphones to plug in for their mobile music fix.

Apple has been investing less and less into “iPod” since the iPhone 3GS was released. I still believe that the iPod margins are HIGHER than ever. I still believe that the iPod is THE defacto standard for “portable media player” for the masses. The iPod touch, although an iOS device is still an “iPod” and I believe that the touch is carrying the rest of the line. For most kids, iPod (non iOS) is still the defacto gift when it comes to gifts for any occasion.

The iPod isn’t dying but I see the price dropping more and the changes to the line coming slower than ever. Apple won’t sell a device unless it’s making money hand over fist.

A note that many journalists glossed over in the iOS5 event is “iPod” has been renamed to “Music” across all iOS devices and the icon has changed to be in line with what you see on the iPod Touch (a music note instead of an iPod Classic silhouette. The iPod brand is no longer carrying the iPhone or iPod. Now, they simply have a “music app” not an “iPod app” This is HUGE but we can’t get ahead of ourselves. $300 for an iPod Touch is still too high for many. Until there’s an iOS Media Player that sells for $49-$99, I think the iPod will still be under Christmas Trees for the next 5 years.

Deathbed? Hardly.