“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
I’m a brainwashed Apple freak, but I’ve gotta say I was disappointed by the new Nanos. Went to buy one for a friend, but when I picked it up it just felt cheap and like a smaller Mini. Definitely didn’t have the wow factor of the original Nano (which I bought right away).
My point is that while it’s technically an improvement, the new Nano design just isn’t the slam-dunk that the old one was, so I’d expect sales to be good but unremarkable.
If the iPod nano’s aren’t flying off the shelves (and I don’t know if they are or not), then it MAY be because they are pretty much the iPod mini’s with a color screen.
While stepping it up in features, it seems Apple sort of stepped back as far as design with the new nano. Think about it: If the iPod mini was updated last year instead of being discontinued, then what would it look like? Smaller, thinner and with a color screen.
In other words: Exactly like the new iPod nano.
Let alone attract those who’ve waited so long for the much hyped true video iPod.
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Marquez, the much hyped “true video iPod” is a rumored product. It was never promised by Apple, it’s the rumor mill and peoples wishsful thinking that have created a buzz about a non-existent product. If you are waiting around for all the supposed Apple products that you read about on rumor sites, you are going to be sorely dissappointed, as it sounds like you already are.
They need to DROP THE PRICE.
The new Nano costs much less to make than the old, yet the price of it is relatively static. Apple’s competitors are selling similar devices (capacity wise) for cheaper. Therefore, people are going for the cheaper alternative.
Apple’s squeezing the meat of the iPod line for profit right now, because their new Macintels are MUCH more expensive to make than their PPC predecessors. They aren’t making as much money on the computers (per unit) and they are trying to make it up with the iPods. Unfortunately, we are seeing the result – you can only abuse the golden goose for so long before that has an effect on how frequently it will give you eggs.
Apple risks ruining a good thing here, all so their bottom line isn’t too damaged by higher-priced Intel kit. Well, they made that bed and should just lie in it. If the computers are a drag on profits then they need to work on THAT problem without upsetting other areas of their business.
Keeping iPod (& the iTS) market position dominant is very important for the future of the company now. It should be better protected.
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We’re all saving and waiting for the Video iPod – Hurrah !!
– the zune killer !!
I bought a 2gb nano about a week ago and they were nearly out of them at the store where I bought it.
Apple’s competitors are selling similar devices (capacity wise) for cheaper.
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Show me one.. Bet you can’t…
“Apple iPod nano demand muted?”
Only in the deaf market.
I kindof liked the looks of the last gen a little better, I respect the new one, and I understand why its different; it truely is better, screen is more protected.. but the look of the regular ipod is more appearling to me, even if it scratches easier.