“Apple shares hit a monthly low Tuesday after a report on slowing song sales in the iTunes Music Store apparently tempered investor enthusiasm, but even the author of the report said Apple shouldn’t worry too much,” Katie Dean reports for TheStreet.com.
“Shares of the Cupertino, Calif.-based computer maker slid $2.61, off 2.9% to close at $86.14. Shares changed hands at heavier-than-normal volume,” Dean reports.
“For its digital music report, released Monday, Forrester Research analyzed 2,791 U.S. iTunes debit and credit card purchases between April 2004 and June 2006,” Dean reports. “The report found that iTunes sales steadily increased from the beginning of the survey date to January 2006, but tapered off in the following months.”
“‘With only two years of full data, it is too soon to tell if this decline was seasonal or if buyers were reaching their saturation level for digital music,’ Forrester analyst Josh Bernoff wrote. ‘During the previous year, iTunes revenue fell after the holidays but rose significantly in May,'” Dean reports.
Dean reports, “For its part, Apple spokeswoman Natalie Kerris says ‘the conclusion that iTunes sales are slowing is simply incorrect.’ Apple does not provide any financial details related to its online music store, but says 1.5 billion songs have been sold in the store. Kerris added that iTunes sales are 6% of all music sold in the U.S., making it the fourth largest music retailer.”
Full article here.
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