Analyst’s checks show shortages of Apple’s iPod as sales remain strong amid tough economy

Likely leaving BusinessWeek’s Arik Hessledahl flummoxed, as is usually the case lately, The Associated Press is reporting that “The tough economy seems to be having little affect on iPod sales.”

“Kaufman Bros. analyst Shaw Wu said in a note to investors his checks show Apple’s popular music player has joined the iPhone in the sold-out category,” AP reports.

“He said wait times at online retailer Amazon.com for the $229 8 gigabyte and $299 16 gigabyte iPod touch models are three to five weeks,” AP reports. “Wu said certain retailers, including Best Buy, Target and Wal-Mart, are even seeing spot shortages of the iPod tano, which has $149 and $199 models, and iPod shuffle, which sell for $49 or $69.”

AP reports, “He expects Apple to sell 21 million iPods in the quarter, up 90 percent from the previous three months, but down about 5 percent from the year-ago period.”

MacDailyNews Take: Add in the iPhones that Apple will sell — which each contain an iPod, even if their product name doesn’t — and “iPod sales” will be up YOY. That might seem like a very basic concept. Nevertheless, it’s one that certain Ivy League-educated writers and many Wall Street “analysts” can’t seem to grasp – or, more likely, prefer to ignore, as it doesn’t suit their purposes at the time.

Full article here.

[Thanks to MacDailyNews Reader “JES42” for the heads up.]

23 Comments

  1. I keep trying to explain that a $600 phone is a much better sale than a $49 shuffle or a $149 nano… but then these analysts ignore the most obvious thing: billions of cash flowing into the bank as the company remains debt free. Even AAPLs PE, which is quite low for its growth rate, completely understates its earnings because of subscription accounting.

    Okay, forget the accounting gimmickry and just look at cash flow. AAPL has the cash flow of a utility unheard of in a growth story

    And if even iPod sales hold up this holiday… I guess someday they’ll just use the cash to take the company private. I’ve never seen value like this.

    Put another way: the hypothesis that Apple will face declining business due to the macroeconomic environment, absolutely reflected in the stock price, has NO supporting evidence in the real world!!! It is one of those reasonable and obvious hypotheses that just happens not to be true.

  2. Although this is way off topic, I must chime in. The Rep. controlled Congress, and or White House has given the Auto industry what it has wanted. They took away or blocked environmental laws; gave them tax brakes; encourage executives to make huge salaries and leave with golden parachutes; reduce union labor; outsource to other countries; the list goes on. Now they want the bail out their friends while dumping the problems on the Dims and blaming them at the same time. I was once a proud Rep. but now I am ashamed at them.

    About the 5%, it’s the middle class that spends the money that runs the economy. The poor don’t have it, and the rich horde it. The reason the Rep. won was by the 70’s demand side economics had made prices too high. Supply side solved this problem, but it has run it’s course. Yes products are cheaper, but no one is making enough money to buy them.

    The best part about Rush’s term “Obama recession” (yes he created it) is that only the most foolish people would blame a President before he is in the White House. Most people will stop listening to him (and his copy cats) and start finding smarting people in the Rep. party follow.

  3. When Apple reports results for this quarter in January, it’s going to look very good next to tech players fumbling (some badly) because of the economic situation.

    Accounting for its huge lump of cash “in the bank,” zero debt, and deferred profits from the iPhone “subscription” accounting, Apple stock will be an attractive investment in an otherwise down market.

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