iPod dominates the market

iPod contributes 12-14% of the total turnover of the company, industry experts believe the number will rise. With this increase comes pressure on gross margins, gross margin mix of 20% compares unfavorably to the average iPod company Apple by 27-28%. The Apple iPod has to boost growth by expanding the market potential of the computer market base that continues to grow, helped, but at a slower pace. To increase the market penetration of MP3 players is growing Apple launched the iPod Mini internationally in July 2004 and HP iPod launch is scheduled for later this summer.

Apple’s entry in the market of digital music player (MP3) market with its popular iPod expanded the addressable market for the company and marks a shift in strategy for Apple. The iPod is a cultural phenomenon that capitalize on the convergence of digital consumer electronics and computers, and Apple’s position as a fast engine to achieve the number-one market position. iPod adoption continues to accelerate, with few signs of a slowdown. It took about 18 months for Apple to sell its first million iPods, but its second million came in six months and the third came in four million. In fact, it seems that only its suppliers can slow down, especially the hard drive dealers, which require a difficult time meeting. Experts estimate that the growth of the iPod remains strong for the foreseeable future and does not expect major fallout customers who meet to from Apple’s inability to satisfy demand.

An analysis of the launch of the Sony Walkman in 1979 indicates the market opportunity for a revolutionary portable music player to remain for several years and a steady Apple shares in the coming years (unlike Sony’s experience with strong should keep the Walkman).

While the iPod and iTunes awareness of important Apple product, they have done little to Apple’s Mac Business Base Push. Experts attribute this mainly to higher prices than the average Apple and continuing lack of knowledge on the part of consumers as to the compatibility between Windows and Mac. About the prices, the average consumer desktop PCs at $ 1.019, which is $ 280 below the price point of the low-end Apple’s Apple iMac Flat Panel price now abandoned. In addition, the ASP industry is in decline because most of the growth in the market in the sub-$ 1,000 market.

As regards the compatibility of Windows and Mac OS X, although Apple a concerted effort to educate consumers about the ease, which has made these two products together, turned deaf to the most. Apple is making progress through its retail stores where it is estimated that half of Mac buyers first time buyers, but to preserve it for the Apple shares down to work in the long term the company has its share against Windows, at least. Apple apparently wants to avoid selling PCs at a loss, but unfortunately the growth prospects for $ 1,000 plus PCs are limited. This presents a conundrum for Apple longer term, but for now it maintains its current strategy. In addition, the revenue share, Apple has made much better, although this is not something that is often discussed separately from income, is probably more important than the part of the device.

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