Analyst: iPod could transform Apple Computer, make the company ‘relevant again’

“Apple Computer Inc. may have morphed into a niche computer player, catering largely to the creative community, but its iPod digital music player, loved by many, could be the ‘killer ap’ that pushes it out to the wider masses,” Donna Fuscaldo reports for Dow Jones Newswires. “At least that is what Merrill Lynch analyst Steven Milunovich predicts.”

Fuscaldo reports, “In a research report Monday, he said the success of the iPod demonstrates Apple’s ‘tech know-how and strong brand’ and could make the company ‘relevant again.’ And the iPod isn’t expected to be small business for Apple. Milunovich estimates iPod’s revenue to come in around $1 billion this year, contributing 15 cents to per-share earnings. By fiscal year 2006, the analyst said revenue for the iPod could double to $2 billion, adding 25 cents to the EPS.”

“Indeed, Apple has been enjoying success with its iPod line of digital music players. It latest installment, the iPod mini, which began shipping in February, saw more than 100,000 pre-orders, said Apple. The company’s iTunes pay-for-music download service has also been very popular, with Merrill’s Milunovich estimating roughly 30,000 songs were sold from last April through January at 99 cents each,” Fuscaldo reports. “‘We’re more optimistic in believing that iPod is not just a one-hit wonder that will be knocked off,’ said the analyst.”

Full article here.

29 Comments

  1. Clearly the writer is just regurgitating what she hears from her analyst or others. 30,000 songs might be per month – not the total. Also, a “killer app” by definition would be an application, not a piece of hardware. The killer app might be iTunes, but certainly not the iPod.

    In a related article, Microsloth and Dell got together and produced a killer crap. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  2. I’ll bet when she wrote this article in Microsoft Word, the dictionary truncated the last 3 zeros of 30,000,000. I does kinda loooook like a sttuttering ttypo, doesn’t it?

  3. yayaya

    i don’t no what os is the most secured

    BUT

    has any1 thought of Apple being the reason Microsoft
    being so dominate?

    by not licensing there os to other servers
    there is no choice for other computer makers
    but to go to windows.

    linux is no user friendly
    windows is user friendly enough
    and Apple os is the most user friendly

    so could it be that sometime in the FUture
    that Apple could be sued for not licensing there os
    and letting Microsoft dominate with there flawed os

    or maybe the other computer makers could just come out with there own os

    Or Apple could make a new os for other computer makers
    or license their older os systems?

  4. Financial analyst are very narrow minded I come to conclude, The iPod has been out for three years now and slowly but surely it got to the success it has today. Everyone underestimated the creativity of such a player, yet, now they claim that it may change the image of Apple and makes it regain some credibility. Well, Mr, why don’t you have a closer look at what is being developed by Apple. iTunes is another major success and it’s been for years while only made available for the Mac users.
    Certainly, the windows users are now targeted and it makes a big difference I agree, but please, don’t presume that Apple’s credibility will be regained because of the iPod. Apple credibility is in its history, creativity, genius and amazing finish product.
    What this financial expert is looking at is just the tip of the iceberg. If he thinks that the iPod is an amazing product, he probably missed checking the rest of what made Apple what it is.

  5. I just sent an e-mail to the NASDAQ site correcting their “info” and making a couple of points:
    1) Apple sold 30,000,000 songs from launch in April until sometime in December 2003.
    2) From launch until late October 2003, the only people able to use the iTMS were US users of Macintosh OS X. This would also be limited to those with broadband internet, not required but necessary. Otherwise, Apple sold most of the music to a base smaller than 10,000,000 users.
    3) Since October 2003, iTunes software and the music store are now available to all users of Windows 2000 and XP and will be installed on all new consumer model HP and Compaq PCs shipping in or after June 2004.
    4) Although selling 30,000,000 units in 9 months comes out to 3 and 1/3rd million a month, the actual rate has been rising at a steady rate.

    It’s really amazing how sloppy many in the “news” business are.

  6. That’s really funny. Apple are so irrelevant that virtually every computer company copies them (badly) on a regular basis. Some of these journalists seem to be stuck in a Groundhog Day somewhere in early 1997.

  7. Maybe I’m mistaken, but Apple still sold more Mac’s than iPod’s last year. I wouldn’t say that a company that can sell that many computers is not “relevant”.

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