Will we keep buying Apple?
Thursday, January 22nd, 2009 by SamApple has just released their most recent set of earnings figures, detailing how the MP3 player, phone and computer manufacturer performed over the Christmas season. The answer? Strikingly well. In the middle of a global financial meltdown, Apple managed to turn in record breaking revenues ($10bn) and profits ($1.6bn).
Reevoo’s own figures back up Apple’s success story. Reevoo measured traffic to all Apple products across 61 British retailers’ websites, and saw Apple’s share of the market increase dramatically during the Christmas peak, from 1.3% in September to 3.0% in December.
This has everyone wondering whether Apple can continue to thrive selling high-end electronics while lesser manufacturers fight to survive in a race to the bottom of falling margins and lower sales. Of course, what’s driven Apple’s success over the past few years has been its continuing innovation - think of the iPhone, the iMac or the iPod Nano. So some pundits are asking whether this pace of innovation can continue or whether Apple will soon be running out of ideas.
A closer look at Reevoo’s numbers suggests that it might not be wise to bank on Apple performing as well in future. For one thing, the company’s market share has been pretty flat throughout the year, slipping back through the summer after popularity increased in the spring with the release of new iMac models.
This time around, it looks like Apple has gained most of its increase from the one area where it is truely king: MP3 players.
No-one needs to be told that by far the most popular range of MP3 players is Apple’s distinctive iPods, but amazingly Apple has managed to increase iPod popularity from 60% of MP3 players through the year to 80% during November and December, leaving all other manufacturers to share just 20% of the market over the Christmas peak. Apple released a highly-praised refresh of its bestselling Nano during September and a smaller update of the iPod Touch. Shoppers responded with a thumbs up, giving the new Nano a rating of 9.1 out of 10. But popularity only really rocketed in November, perhaps highlighting their appeal as Christmas gifts.
In addition to their overwhelming popularity, Apple also manage to sell iPods at a premium - only Portable Media Player specialist Archos has a higher average cost per MP3 player sold.
Putting this together suggests that Apple has benefited from a strong run on its impressive MP3 players this Christmas, putting it in position to report those eye-popping revenue revenue figures.
So why the caution? There are two worries about iPods for 2009.
The first is that other manufacturers are improving their products. Samsung and Creative, in particular, saw much-increased ratings from shoppers over Christmas. So if you’re looking for a new MP3 player, it would be a good idea to keep your eye on what these two brands have to offer.
The second worry is that the number of people looking for a new MP3 player seems certain to decrease as smartphones improve and start to reproduce more and more features of MP3 players. With only 4.4m iPhones sold in the last quarter compared to 23m iPods, Apple will have to do a lot of work to make sure iPod fans stick with the brand.






























