“Citing initial channel checks, analysts at Baird U.S. Equity Research are reporting that there appears to be muted demand for Apple Computer’s second-generation iPod nano so far, which could have negative implications for NAND flash pricing,” Slash Lane reports for AppleInsider. “‘We believe Apple did not meet its NAND flash order schedule this month,’ analyst Tristan Gerra wrote in a note to SanDisk investors on Monday.”
MacDailyNews Take: We believe just about anyone can call themselves an “analyst.”
Lane continues, quoting Gerra, “‘While it is difficult to assess the performance of the new nano product family as Apple retailers have been directed to not comment about the iPod’s sales performance, the initial feedback we are receiving from industry sources suggests nano volumes are not as strong as in the same period a year ago, which we do not view as a surprise given the new nano offering’s lack of new feature set besides higher density.'”
MacDailyNews Take: Lack of new feature set? Apple’s 2nd generation iPod nano offers a new aluminum case design which is a smaller, thinner and lighter design that comes in several new color choices, increased battery life to 24-hours, provides new Search and Quick Scroll features, new support for gapless playback, a compact USB power adapter which is nearly half the size of the previous iPod nano USB power adapter, along with offering more than twice the music capacity for the same price as the previous generation iPod nano.
Lane continues, “It should be noted that Gerra’s previous reports on Apple and its plans for the iPod nano were not particularly accurate. In July, the analyst backed other Wall Street analysts in saying Apple’s second-generation iPod nano would see an approximate 2-month delay that would prevent the players from making their way to market until some time this November.”
Full article here.
In a related article, AppleInsider reports, “Analysts for Citgroup on Monday said they expect Apple Computer to sell as many as 18.8 million iPods during the December quarter… Analyst Richard Gardner told clients in a research note on Monday [that] for the third calendar quarter ending September… He is modeling for sales of 9 million iPods during the quarter, including 5 million iPod nanos and 1 million iPod shuffles.”
Gardner also estimated iPod shipments for the fourth calendar quarter, writing, “we raised our iPod shipment estimate from 16.0M to 18.8M to reflect an increase in ‘nano’ shipments from 8.5M to 10.0M and an increase in ‘shuffle’ shipments from 2.5M to 4.0M,'” AppleInsider reports.
Full article here.
MacDailyNews Note: For reference, in the third calendar quarter 2005 (Apple’s fiscal 4th quarter), Apple shipped 6.451 million iPods (all models). In the fourth calendar quarter 2005 (holiday), Apple shipped a record 14.043 million iPods (all models).
Related articles:
Thurrott reviews Apple’s 2G iPod nano: ‘the best small-sized media player on the market today’ – September 25, 2006
USA Today reviews new Apple iPod nanos, updated iPods, iTunes 7 (each earns 4 stars out of 4) – September 21, 2006
CNET Editor’s Pick: Apple’s new 2G iPod nano – ‘sure to be top choice among wide range of users’ – September 14, 2006
Apple intros new iPod nano with new aluminum design in five colors and 24-hour battery life – September 12, 2006
Actually, we should not be ostriches and stick our heads in the sand. This report should be a concern, even if it turns out to be wrong. For example, I noticed that the iPod is no longer the #1 best-seller in the MP3 player category on Amazon.
http://www.amazon.com/gp/bestsellers/electronics/172630/ref=pd_ts_e_nav/102-5264406-9273756
The #1 seller is a SanDisk player, and perhaps not coincidentallyl, the #1 selling accessory is a 2 GB SD card sold by Sandisk. It also should be significant that the #3 player is also SanDisk.
The iPod nano doesn’t show up until #4, and that’s actually the 1G black nano. The new 2G nano doesn’t show up until #9.
So while Amazon top seller list isn’t a complete picture, the fact is, this pattern is very different from the past when you would have to go to #5 or #6 to find a non-iPod model.
Apple can’t rest on its laurels. I hope Apple is also worried and really ratchets up the advertising campaign to counteract the small but rising anti-iPod movement. With the introduction of movie downloads, it would appear the nano is in danger of being ignored.
This is the same phantom “muted demand” story they run every time Apple releases a new iPod, and then once Apple announces its sales numbers, it blows everyone away.
can’t be! I just bought one for my mom, like 3 days ago.
so far, i alredy order a green nano and the new shuffle.
here in the canary islands it take a little more time.
with this pre-order i will complete my collection of a 2gb white and 4gb black nano, 1gb shuffle, 4th gen ipod 40gb 5th gen 30gb video and of course a 4gb mini.
f*** al this ana**** it’s just there little monopoly-game for laught
even if current users don’t upgrade, i think there are plenty more people who don’t have an ipod at all
Many, many people hate Apple. Why? Who knows, but it’s true. They just hate Apple.
…..a compact USB power adapter which is nearly half the size of the previous iPod nano USB power adapter
OOOhhh…AAAAhhh…. a smaller power adapter…. I’m buying one now!
isn’t this more exciting, say?
http://www.macsimumnews.com/index.php/archive/europe_apple_granted_patent_regarding_networked_media_station
BTW, as of lately, macsimumnews seem to pick up much more news than MDN. Also, alot earlier.
I personally thought the original nano looked a lot sleeker. But perhaps the toughness of the units is more important than Apple originally thought.
Even if Apple only sell 19M this Xmas, that still means they sold 44 M iPods this calendar year. Not too shabby considering. Probably means close to 100 M pods sold in the last 5 years.
I think the mac sales will be startling, plus the pod profit will be immense.
Demand for the nano has absolutely nothing to do with interest in the Zune. That is ridiculous. The reason for lack of nano demand is that people are awaiting the next product from Apple, whether it be an iPhone or an iPod WideScreen Edition. People are tired of being burned by Apple, when they buy a new product and it becomes obsolete. THAT is the real issue.
The Thing is though is that these changes were not to wow the previous nano owners into buying a new nano. The tactic of creating the colored nanos was an awesome business strategy.
Apple isnt trying to get anyone to get rid of their current Nanos or Videopods, they are going after the previous generation to finally upgrade.
Lots of people purchased Minis, then the nanos came out, and many of those people didnt upgrade, because their current Mini was fine. Now i think Apple is trying to go after people who already own a cute pink Mini…
Weren’t there similar reports about the first gen. nano not selling well about this time last year? Then it became Apple’s best seller ever.
I don’t believe a word of this report.
G2, thanks for the heads up about http://www.macsimumnews.com. I really need to ween myself from MDN.. The ads are getting ridiculous.
People are tired of being burned by Apple, when they buy a new product and it becomes obsolete. THAT is the real issue.
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Actually, that is not a real issue at all, but you do win the award for the moronic statment of the day..
What have “new features” got to do with anything.
Are they saying that iPod owners will compare it to what they have and decide not to buy a new iPod ? duh! existing customers aren’t the target buyers at this point. Any iPod nano owner would still have a practically new device in their hands at the moment, they’re not looking for a new one.
Are they saying that the competition has matched last year’s nano features and form factor ? Please show me just one example of a product competing on par with even last year’s nano. Can’t … well I figured you wouldn’t.
Waiting for M$’s Zune to come out ? That’s not comparing apples to apples (no pun intended). The Zune isn’t aimed at the nano. It can’t even hold a candle to the HD iPod. Who’s gonna wait for something that’s not even in the same product category.
So, what was the point about lack luster feature improvement ?
This isn’t a software you upgrade, it’s consumer electronics. You buy to replace you existing product or acquire a product you don’t have. In both cases, the nano is still on top and would be so even without a 2nd generation.
PC geeks applying their stereotyped reasoning to a completely diferent product type. Flawed reasoning in their own field isn’t going to get any better in a different one.
You know, the nano’s had its spot, and it’s time to move on.
That’s Apple anyway, they have something different around the corner.
altos
couldn’t have put it simpler myself . . nice one
RC said: Actually, that is not a real issue at all, but you do win the award for the moronic statment of the day..
And you win the Apple-Fan-Boy-of-the-Month-Who-Can’t-See-the-Forest-Through-the-Trees Award, loser.
At least it is good to know animated characters from Toy Story can access the internet and make comments on MDN, RC.
“Lack of new feature set? Apple’s 2nd generation iPod nano offers a new aluminum case design which is a smaller, thinner and lighter design that comes in several new color choices, increased battery life to 24-hours, provides new Search and Quick Scroll features, new support for gapless playback, a compact USB power adapter which is nearly half the size of the previous iPod nano USB power adapter, along with offering more than twice the music capacity for the same price as the previous generation iPod nano.”
WTF.. you call that ‘innovation’? it’s nowhere near new, cool, or even meaningful. Let alone attract those who’ve waited so long for the much hyped true video iPod.
Maybe music phones are starting to have an impact. If so, expect an iPhone sooner rather than later.
Just goes to show how fickle consumers are. They’re always looking for the next radically different thing. Apple, on the other hand, believes that once they’ve reached perfection in design they shouldn’t mess with it.
I was a fan of the iPod mini, and I wished Apple had continued that line and kept increasing the capacity as new 1-inch drives were released. These iPod nanos are as much a return of the iPod mini style as they are the new version of the nano. Having played with them at the Apple Store, I have to say the new ones are more “classy” than the old plastic-shelled versions.
Note that Citi’s “analyst” downgraded the stock today but nevertheless raised his estimates for earnings and iPods to the highs on the street . . . In other words, he’s bearish on the stock, so he’s raised expectations in the hope that the company will miss and he will look right. What a dishonest hack.
Didn’t we go through this with the original Nano? At first, they said sales were slow, but then where did they go? So whatever they say, it really doesn’t matter. Christmas season will tell
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RC-
Your thoughts on Apple not making 14 million this Chirstmas season are probably more fear-based than market driven.
1. Apple’s WW channel has increased greatly, espically in the EU, Japan and S. Korea.
2. Demand in the US is near a peak, but Apple will be able to ride the peak demand through the season.
3. The iPod has taken off much slower across the EU, as the store was much slower to be released in the EU – roughly a year behind the US. Factor this with a large % of EU market share to obtain, and the WW demand of iPods is poised for a strong upswing over the next six-months.
WW demand for iPod up, more channels, US to remain strong, Apple will be pushing the 18 million-mark for the December quarter (Apple’s Q1).
Movie download dominance is Apple’s next immediate target.
1. iTV
2. HD Downloads
3. Full-screen 720 x 400 iPod video
4. HDTV’s with iTV built-in
5. Multiple studio’s signed up with iTunes
This is the massive MWSF ’07 push. The iPhone will come later.