Apple on Forrester report: ‘the conclusion that iTunes sales are slowing is simply incorrect’

“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.

Related articles:
Blackfriars’ does the math: Apple iTunes sales are not ‘collapsing’ – December 12, 2006
iTunes interest climbs as one analyst claims falling sales – December 12, 2006
Akamai Net Usage Index for Digital Music measures real-time global consumption of online music – December 11, 2006
WSJ mistake: ‘digital-music sales have stalled for the first time since Apple launched iTunes Store’ – December 06, 2006
Digital downloads drive world music sales in first half of 2006 – October 13, 2006
Study reports the obvious: most music on iPods not from iTunes Store – September 17, 2006
Apple iTunes Gift Cards help boost growth of digital music in U.S. – April 21, 2006

38 Comments

  1. I remember Forrester back in the glory days of IBM. They kissed Big Blue’s ass as if they enjoyed the smell and the taste. They sneered at upcoming Microsoft as an impudent whippersnapper. Then, after Microsoft defeated IBM in the market, Forrester acquired a new taste in asses to kiss.

    Some day Forrester will yield to the then to be obvious to even the blindest amongst us and learn to put their lips on yet another corporate posterior, Apple’s.

  2. There was a story just like this last year at this time. Everyone went crazy about the so-called falling sales on iTunes and when Apple released their numbers they were off the chart. I think all this is is a slight sales slump preceeding Christmas; everyone is buying gift cards.

  3. The nothing-is-ever-good-enough mentality of American business analysts is monstrously and preposterously out of whack. All it takes is one report of a possible seasonal downturn to trigger outcries of impending doom.

    Some people only feel alive when they’re running around shouting, “The sky is falling, the sky is falling!”

    The best place for Chicken Little is in the stewpot.

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