Should Apple (AAPL) Kill the iPod?
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Price: $315.32 -0.28%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
Revenue Growth %: +15.8%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
Revenue Growth %: +15.8%
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Should Apple (Nasdaq: AAPL) put the kibosh on iPods?
According to Digitimes, Apple's iPod lineup accounted for just 7 percent of total revenues in 2011. Suppliers have said that, despite Apple pushing for sales, orders have continued to come in weaker. Suppliers have also shifted focus from making iPods to producing iPads and iPhones.
And why would a supplier waste resources on a device that offers lower profit margin? Apple recently cut prices on its iPod touch by $30 to $199, and the iPod Nano is at $49, both providing lower profitability and demand, as many consumers shift to iPhones and tablets.
But, Apple knows that 7 percent is still 7 percent, and until the device becomes too unprofitable, you will still be able to get a well-equipped iPod in the near future.
Shares of Apple are trading slightly lower Friday morning.
According to Digitimes, Apple's iPod lineup accounted for just 7 percent of total revenues in 2011. Suppliers have said that, despite Apple pushing for sales, orders have continued to come in weaker. Suppliers have also shifted focus from making iPods to producing iPads and iPhones.
And why would a supplier waste resources on a device that offers lower profit margin? Apple recently cut prices on its iPod touch by $30 to $199, and the iPod Nano is at $49, both providing lower profitability and demand, as many consumers shift to iPhones and tablets.
But, Apple knows that 7 percent is still 7 percent, and until the device becomes too unprofitable, you will still be able to get a well-equipped iPod in the near future.
Shares of Apple are trading slightly lower Friday morning.
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