U.S. Mac Sales Up 7% Year-Over-Year in July and August, iPod Sales Down 16%

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com/2009/09/14/u-s-mac-sales-up-7-year-over-year-in-july-and-august-ipod-sales-down-16/)

Silicon Alley Insider reports (http://www.businessinsider.com/mac-sales-ahead-of-expectations-through-august-2009-9) on data from research firm NPD showing that U.S. Mac sales were up 7% year-over-year during the months of July and August, ahead of most analysts' projections. The data, reported by Piper Jaffray analyst Gene Munster, also shows a 16% decline in year-over-year iPod sales, a performance slightly below analysts' expectations.Munster says NPD data from July and August show Mac sales up 7% year-over-year through August, while the Street is expecting 5% year-over-year growth for the quarter.

Back-to-school sales in the first few months of the quarter probably helped, but at least Apple could handle some deceleration this month and still meet expectations. (And Apple's international growth, not represented in NPD's figures, should help, too.)Apple noted during its most recent earning conference call (http://www.macrumors.com/2009/07/21/apple-reports-1-23-billion-profit-for-q3-2009-best-non-holiday-quarter-ever/) that it expects the market for Apple's traditional MP3 players to decline as users increasingly opt for the company's iPod touch or iPhone models. The introduction of new video camera-equipped iPod nano models (http://www.macrumors.com/2009/09/09/apple-updates-entire-ipod-family-bringing-capacity-and-performance-bumps-to-ipod-touch-and-video-camera-to-ipod-nano/) at last week's "It's Only Rock and Roll" media event, however, may provide a boost to Apple's "traditional MP3 player" segment over the last few weeks of the quarter.

Article Link: U.S. Mac Sales Up 7% Year-Over-Year in July and August, iPod Sales Down 16% (http://www.macrumors.com/2009/09/14/u-s-mac-sales-up-7-year-over-year-in-july-and-august-ipod-sales-down-16/)

[thegoldenmackid]

That seems to be a pretty big drop in iPod sales.

[MacDaddy901]

Wait. So iPod touch isn't included in iPod sales?

[Eidorian]

Back to school sales is what drives the summer computer sales. I'm unsure about the iPod Touch right now.

[DUSTmurph]

IMO i think this is overall good news for apple, since macs cost much more than iPods. Plus, I dont think touches were included in this.

[eastcoastsurfer]

Most people who want an iPod have already bought one. Now, Apple's largest competitor is themselves, and they haven't released anything ground breaking since the Touch and iPhone.

[Compile 'em all]

Makes sense, why have an iPod and phone when you can buy one device that has both. The decline in iPod sales is natural and I believe will continue as the iPhone start spreading to more markets and getting cheaper.

There was a reason why Apple entered the mobile phone market after all ;)

[ejbenjamin]

I realized the other day that I hadn't bought an iPod in about two years-- not since the first-gen iPod touch first shipped. There hasn't been anything stunningly new since then that would warrant an upgrade.

I'm not surprised if iPod sales have slowed-- the market is probably saturated, and at that point Apple's only option is to sell new devices to users who have already bought them before.

Nothing in the touch compels me to upgrade from my first gen. I can still buy apps, etc. The nano is great but its core features haven't changed much in its last few iterations. And the most recent shuffle is a trainwreck.

[iSee]

I would have thought iPod Touch sales would be included in iPod sales. e.g., if I were looking to buy an iPod, I'd compare and consider a nano and touch.

Anyone want to figure out what iPod would look like with the touch included?

[motulist]

"traditional MP3 player"

Geez! The world moves so fast these days. The "traditional MP3 player" is less than 10 years old, and it's already like this old style thing that modern technology has made look old fashioned.

[Lesser Evets]

Wait. So iPod touch isn't included in iPod sales?

Seems so.... not sure why, though. It makes this story ridiculously worthless, though.

[twoodcc]

now are ipod touches in that 16% ?

[NewSc2]

Well, they had iPod Touches last year, so if it wasn't included in sales then, it wouldn't be now.

I'd be interested to see this against iPhone sales data. I haven't bought an iPod since the first iPod Nano, but have purchased 3 iPhones since (EDGE, replacement EDGE, and 3GS).

[fluidedge]

ipods are not selling because EVERYONE has one now. Mine has lasted for 4 years. Don't need to buy another. Although the new nanos look sweet.

[crackbookpro]

call me crazy... :p Apple knew about this for quite some time, and may be a coincendence with the iPod Touch not releasing a big update (camera/video/mic) to the Touch this past keynote.

I made a poll earlier today - http://forums.macrumors.com/showthread.php?t=786519

[crackbookpro]

ipods are not selling because EVERYONE has one now. Mine has lasted for 4 years. Don't need to buy another. Although the new nanos look sweet.

not really... there is a ton of outside factors besides that.

[puckhead193]

Most people who want an iPod have already bought one. Now, Apple's largest competitor is themselves, and they haven't released anything ground breaking since the Touch and iPhone.

very true. Why upgrade unless something amazing came out. (which hasn't happened since the ipod touch came out, hint apple - add a camera)

[trekkie604]

not really... there is a ton of outside factors besides that.

still, market saturation can't be ignored.

[jaw04005]

It'll be interesting to see the official breakout at the end of the quarter. I suspect desktop sales plunged (again) over the last quarter. Personally, I think it's time to reboot the iMac line and repurpose it from a marketing standpoint.

The age of the living room/family computer is over.

However, the sheer amount of growth across the Mac portable line since 2006 is remarkable.

http://switchtoamac.com/site/mac-shipments-lowest-in-15-years-first-yearoveryear-drop-in-55-years.html

[milbournosphere]

This makes sense to me. They have recently refreshed their portable line, and made innovations in the interaction between the user and their machine. Some might view multi-touch as a gimmic, but it really is a new way of computer interaction. On the other hand, with the exception of Genius, not much has changed since the introduction of the iPhone/iPod Touch. Even then, the iPod Touch really isn't too great for those that just use their iPods for music storage and playback. I bought my iPod (fourth generation) years ago, and with the exception of the storage increase, there really haven't been any major innovations to the original/classic iPod design. It's not Apple's fault, there just really isn't much of a way to improve on the device any further(especially with the recent addition of FM radio in the nano). It's a good device, but a device that needs a new "killer app" of sorts to maintain it's high sales in the face of a market in which many people already an iPod of some sort.

[Eidorian]

It'll be interesting to see the official breakout at the end of the quarter. I suspect desktop sales plunged (again) over the last quarter. Personally, I think it's time to reboot the iMac line and repurpose it from a marketing standpoint.

The age of the living room/family computer is over.

However, the sheer amount of growth across the Mac portable line since 2006 is remarkable.

Apple's desktop line feels largely irrelevant right now. I can only recommend their portables.

[RyanR.]

Wait. So iPod touch isn't included in iPod sales?

Why would it didn't you know it was a "gaming system".:D :rolleyes:

[sud]

Sounds about right, you must remember there is a crossover area between the ipod/ipod touch and the iphone, I myself have not bought an Ipod since owning the Iphone :eek:

[*LTD*]

Single-function devices = dying.

[joueboy]

They already sold 220 million! Who else don't have an iPod? Anyone?

[milbournosphere]

Single-function devices = dying.
I disagree. I maintain that a device that does one thing and does it well far exceeds the value of a device that tries to deliver everything and the kitchen sink. It would be nice if multi-function capability would advance to the point where it truly works (and works well), but for now I will be happy to live with having to carry more than one device at a time. The iPhone is starting to get us there, but we're not there yet.

[Eidorian]

They already sold 220 million! Who else don't have an iPod? Anyone?I don't have an iPod right now. :p

[slapguts]

The iPhone has to be hurting iPod sales. Two years ago, I left the house to get a GPS, a battery for my Motorola Razr, and an iPod if there was money left over. Stopped at an AT$T store first, played around with an iPhone, and saved myself a couple trips. Haven't gone back since. Don't even own an iPod right now, or see myself buying one anytime soon. Maybe a last-gen Shuffle, to stick to the side of the motorcycle helmet.

[Bonte]

Single-function devices = dying.

pure mp3 players are dying but computers increasingly move towards single-purpose devices.

[Eidorian]

pure mp3 players are dying but computers increasingly move towards single-purpose devices.Please do tell.

[Beric]

Please do tell.

For example, I have 1 computer that browses the internet and does work, and 1 computer that plays games. Ideally, I would have 3 computers: 1 for internet, 1 for work, and 1 for games.

At least, I think that's what he means.

[mikes70mustang]

For example, I have 1 computer that browses the internet and does work, and 1 computer that plays games. Ideally, I would have 3 computers: 1 for internet, 1 for work, and 1 for games.

At least, I think that's what he means.

Work and internet computer-all in one, gaming-console, problem solved.

[Beric]

Work and internet computer-all in one, gaming-console, problem solved.

Problem with that.

I game on a PC (don't even have a TV).

I work on a Mac.

I want to have a very mobile internet machine, which must be a netbook. PC only, therefore (EDIT: unless Apple makes a netbook, of course).

As such, that's 3 separate machines in an ideal world.

[jzuena]

Geez! The world moves so fast these days. The "traditional MP3 player" is less than 10 years old, and it's already like this old style thing that modern technology has made look old fashioned.

I thought it was just over ten years (1997 or 1998)?

They already sold 220 million! Who else don't have an iPod? Anyone?

I didn't have an iPod of any kind until last fall when I got a 1st gen touch from the refurb store just before the 2nd gen came out. Since then I've added a 2nd gen shuffle for myself and one for my wife. Before that I just used TCPMP on my iPaq (which is the only other digital media player I've ever owned).

[15danielp]

Most people who want an iPod have already bought one. Now, Apple's largest competitor is themselves, and they haven't released anything ground breaking since the Touch and iPhone.

True. My 5.5G iPod is now 3 years old and works fine. 80Gigs is getting full though so I've been waiting for a nice update to get a new one.

That hasn't happened.

Not much has updated other then storage space. I don't wanna spend $250 just for more GBs.

[RazHyena]

Why would it didn't you know it was a "gaming system".:D :rolleyes:

Oh yeah, you're right :D

[KnightWRX]

I disagree. I maintain that a device that does one thing and does it well far exceeds the value of a device that tries to deliver everything and the kitchen sink. It would be nice if multi-function capability would advance to the point where it truly works (and works well), but for now I will be happy to live with having to carry more than one device at a time. The iPhone is starting to get us there, but we're not there yet.

I've been there since my 3 year old Sony Ericsson came out. It doesn't matter that the iPod is a much better mp3 player. I only need music to play to be happy. Carrying 2 devices around is pain, keeping both charged is a pain.

Many people feel this way. 1 device that does everything, and does it good enough, is better than 3 incredible devices.

Sometimes, Good Enough is good enough.

[Chisholm]

I got an email from our Apple rep a few weeks ago and he was pushing for year end sales. Between X.6 and a decent line up of machines I can see a reason for an increase year over year improvement. Back to school offerings in years past haven't been so, um, "fresh."

[Kyprioth657]

Wow, that's great news both ways. The more Mac computers sell, the more Microsoft will get off its ass and innovate, and the more generic iPods sold, the more Apple will be forced to improve...rather than say, just bump up the processing speed of a product 50% and call it a "new generation"

[donlphi]

I've been there since my 3 year old Sony Ericsson came out. It doesn't matter that the iPod is a much better mp3 player. I only need music to play to be happy. Carrying 2 devices around is pain, keeping both charged is a pain.

Many people feel this way. 1 device that does everything, and does it good enough, is better than 3 incredible devices.

Sometimes, Good Enough is good enough.

I agree. Anyway... a man can only carry so many man-purses before his friends start asking questions.

[kdarling]

Makes sense, why have an iPod and phone when you can buy one device that has both. The decline in iPod sales is natural and I believe will continue as the iPhone start spreading to more markets and getting cheaper.

There was a reason why Apple entered the mobile phone market after all ;)

Even Bill Gates, sitting at the WSJ D Conference with Steve Jobs back in 2005 or so, said aloud, "iPods are dead. The future is with do-it-all smartphones."

(or something very similar... can't find the exact quote)

[Chisholm]

I agree. Anyway... a man can only carry so many man-purses before his friends start asking questions.

One side of me disagrees in regards to the compromise of quality, yet, the man-purse toting aspect is far worse. And yes, I did sport a Body Glove fanny pack for a summer. But it was in the late 1980's and I had a bike for my main form of transportation.

[Frisco]

I seems just like yesterday the iPod mini was all the rage. Maybe the best iPod ever made?

[xIGmanIx]

Single-function devices = dying.

unless its made by apple in which they have a 10 year head start on the competition. :eek:

[KnightWRX]

One side of me disagrees in regards to the compromise of quality, yet, the man-purse toting aspect is far worse. And yes, I did sport a Body Glove fanny pack for a summer. But it was in the late 1980's and I had a bike for my main form of transportation.

There's a point where "compromise in quality" is really getting out of hand though. Most mp3 players today play music just fine. Most cell phones play mp3s just fine. Sure the iPod might have an edge, but that's not to say that others player don't work just fine.

Sometimes, you just have to know when enough is enough. That edge the iPod offers ? Just not worth carrying a whole extra device to me and many other people.

[APPLENEWBIE]

If Apple thinks that they will convert every ipod Touch buyer to a iPhone buyer just to get a camera... They had better expand their US providers to more than just ATT... and even then...

I think apple sort of blew an opportunity to replace the ipod touches for a large number of current iPod Touch users... by adding features. As so many have said lately, there is really no reason to replace a perfectly good 16gb current version touch with a new one.

I also think that just maybe, the Steve was not happy with putting in the touch the little video camera they put in the nano. I think that there would have been just as loud a howl of unrest had they done that, instead of a proper still cam/video cam like the iphone. Had they done that, I know I would have thought it was a lowball idea to place that little video camera in the touch...

[LAS.mac]

Convergence. That the word.
I agree that one device which wants to do, badly, three functions. Is not good.
However, my iPhone can be used as a phone, a mini computer, taking notes and allowing me to keep my appointments, agenda, read PDF and e-books. Listen music, watch videos, take pictures and, eventually, videos. Yes, the quality is not the one of a computer for documents and heavy work; the music is not such as listening to the opera, and video not like being in a theatre.
Or taking picture is not like my old reflex.
However All is compensed by size, portability and the ability to have everything right there at the right moment.

[KnightWRX]

As so many have said lately, there is really no reason to replace a perfectly good 16gb current version touch with a new one.

Unless you want to play all the new games coming out a decent framerate and can't afford a iPhone 3GS. Then the new chipset is a must have.

[ctucci]

pure mp3 players are dying but computers increasingly move towards single-purpose devices.

Not here, we constantly add tasking to systems, no matter their OS. Skype, Itunes, video monitoring, remote-ing in to make config changes/quality videos/four color brochures/audio commercials/web site changes.

I've tried replicating core LOB functionality on Iphones and other handhelds. They simply aren't fast enough to respond to moderate-to-deep internal/external customer requests for our needs. You wind up wanting to throw that handheld or netbork right up against a wall in frustration.

But on this Imac with two screens - no problem.

And there's absolutely nothing out there (right now) that does this as seamlessly and elegantly as Leopard on Macs with nice big screens.

[iphones4evry1]

Omg! People are selling their iPods to raise cash to buy a Mac!

[APPLENEWBIE]

Unless you want to play all the new games coming out a decent framerate and can't afford a iPhone 3GS. Then the new chipset is a must have.

I will accept that as a reason...

[lord patton]

I agree. Anyway... a man can only carry so many man-purses before his friends start asking questions.

Yeah... one!

[AidenShaw]

I agree. Anyway... a man can only carry so many man-purses before his friends start asking questions.

If they ask, they're not your friends. (At least, you don't want them as friends....)

Life is too short for homophobia.

[*LTD*]

For example, I have 1 computer that browses the internet and does work, and 1 computer that plays games. Ideally, I would have 3 computers: 1 for internet, 1 for work, and 1 for games.

At least, I think that's what he means.

And this is a trend? :confused:


If they ask, they're not your friends. (At least, you don't want them as friends....)

Life is too short for homophobia.

It's not a purse . . . it's European!

[jpine]

Maybe I'm a minority, but I do not like these "Jack of all trades but master of none" devices. If I want to shoot video, I'll use my Canon HV20. IMHO, the only use for a cell phone camera (now an iPod camera) is to video Sasquatch if you stumble upon him while hiking. :rolleyes:

[Evangelion]

Wait. So iPod touch isn't included in iPod sales?

Yes they are. I think the difference is that touch is a hi-end product, so they are upgraded less often. People who bought a new iPod every year, now buy less frequently, but they buy a more expensive models.

[ob81]

Well, the iPod market is saturated. Everyone has an iPod, and that 1 cool guy at every office has a Zune. Prices are lower, and people are oping for a suffle or nano, and a touch. Or they are just grabbing a touch. I see very few classics out there. People that generally think classic, more than likey save up a little more dough and go with the touch.

[pagansoul]

I just got the new nano but never had one before. I still have 2 working ipods, my old G4 b/w 20GB and a G5 80GB both never leave the house one lives in the dinning-room iHome the other is attached to one of the TVs. I also still have my first 8GB iPhone (card out used like a touch) and my new 3GS. I should not need another pod for 2 years, at least. :rolleyes:

[nick9191]

They already sold 220 million! Who else don't have an iPod? Anyone?

6,000,000,000 - 220,000,000 = 5,780,000,000

5.78B So yeah quite a few :D

[KnightWRX]

6,000,000,000 - 220,000,000 = 5,780,000,000

5.78B So yeah quite a few :D

I'm sure 3rd world countries are a great source of iPod customers.

[kornyboy]

Wirelessly posted (iPhone: Mozilla/5.0 (iPhone; U; CPU iPhone OS 3_1 like Mac OS X; en-us) AppleWebKit/528.18 (KHTML, like Gecko) Version/4.0 Mobile/7C144 Safari/528.16)

I think that it makes a lot of sense that iPod sales are down. There really hasn't been a major change in the lineup in years so people aren't motivated to buy a new one. We will have to see what happens with the new Nano.

[eXan]

The last iPod I bought was 1G touch in early 2008 to upgrade from my 5G.

Now I have an iPhone 1G and don't see myself getting another iPod in at least 2 years.

Most people around me who had iPods either eventually upgraded to iPhone or are planning to do so soon instead of getting another iPod, so the decline in iPod sales isn't surprising.

[Chimpy]

It's only anecdotal, I know, but 3 of my friends have announced they're switching to Mac. Kinda fits in with this news...

[alent1234]

the biggest driver of Mac sales is probably people buying Mac's to develop for the iphone

[Vulpinemac]

It'll be interesting to see the official breakout at the end of the quarter. I suspect desktop sales plunged (again) over the last quarter. Personally, I think it's time to reboot the iMac line and repurpose it from a marketing standpoint.

The age of the living room/family computer is over.

However, the sheer amount of growth across the Mac portable line since 2006 is remarkable.

http://switchtoamac.com/site/mac-shipments-lowest-in-15-years-first-yearoveryear-drop-in-55-years.html

I think, maybe, you should look at your chart again; it gives the lie to your statement. Apple just announced a 7% growth of Mac sales, year-over-year. This means that desktop sales didn't "plunge (again)" because your own chart shows that desktop sales ROSE last quarter. This could easily mean that where portables have been Apple's primary computer sales over the last couple years, desktops are starting to grow again to replace aging PCs and PPC Macs.

What's a real grief is when you hear someone say "Snow Leopard is S•L•O•W," on a G5. Well DUH! Snow Leopard isn't supposed to run on a G5.

[Vulpinemac]

They already sold 220 million! Who else don't have an iPod? Anyone?

Considering there are 1.2 Billion operating PCs in the world, Apple needs to sell 5x more iPods to give every PC its own music player.

[Derwinator]

New iPods every fall but I still hold onto my click wheel iPod 30GB for my car and my iPod Touch for mobile use. Why should I buy something newer? To get a little more memory? Slightly improved performance? A weak built-in speaker and no built-in mic?

Had Apple rolled out a faster iPod Touch with camera, FM radio, built-in mic, more memory and faster performance I would have fought the crowds at the Apple store and paid full price - something I rarely do. Stupid move, Apple....

[Vulpinemac]

The iPhone has to be hurting iPod sales. Two years ago, I left the house to get a GPS, a battery for my Motorola Razr, and an iPod if there was money left over. Stopped at an AT$T store first, played around with an iPhone, and saved myself a couple trips. Haven't gone back since. Don't even own an iPod right now, or see myself buying one anytime soon. Maybe a last-gen Shuffle, to stick to the side of the motorcycle helmet.

And here I have one iPhone, one iPod Touch, two Classics, a 1st-gen Nano and a first-gen iPod (finally dead after spending 5 years as my primary car audio source.)

[Vulpinemac]

Maybe I'm a minority, but I do not like these "Jack of all trades but master of none" devices. If I want to shoot video, I'll use my Canon HV20. IMHO, the only use for a cell phone camera (now an iPod camera) is to video Sasquatch if you stumble upon him while hiking. :rolleyes:

The iPod video camera (and the Flip, Panasonic, Kodak, etc...) are intended to be 'snapshot' video, not high-grade stuff, even if they are HD capable. It gives the everyday consumer an ability to record and 'report' on unusual events that might be missed by commercial news. The unusual is becoming more visible because of digital technology.

[alent1234]

And here I have one iPhone, one iPod Touch, two Classics, a 1st-gen Nano and a first-gen iPod (finally dead after spending 5 years as my primary car audio source.)

and most of us who have iphones don't have 3 ipods because we don't see the need. my ipod classic is in a drawer somewhere because i don't think it works anymore

[michael.lauden]

and most of us who have iphones don't have 3 ipods because we don't see the need. my ipod classic is in a drawer somewhere because i don't think it works anymore

i agree. definitely wouldn't need another MP3 player, ever. if i upgrade my phone to the next best thing (right now 3Gs) i'll keep this as my pseudo iPod

[Ram Mac]

That is sad but I am sure that good ol' steve will think of something to get sales up again. Maybe an ipod that you only have to think about it to make it work? Any takers?

[zachplaysguitar]

Everywhere I go I see more and more macs. Most of the people who get them do so at the recommendation of their friends. More people get macs = more people telling other people to get macs. I love it!:apple:

[jaw04005]

I think, maybe, you should look at your chart again; it gives the lie to your statement. Apple just announced a 7% growth of Mac sales, year-over-year. This means that desktop sales didn't "plunge (again)" because your own chart shows that desktop sales ROSE last quarter.

I wasn't talking about quarter over quarter sales. I was talking about comparing Q1 '09 to Q1 '08. This is how most analysts assess Apple's performance since there are natural fluctuations between quarterly shipment numbers (Back to School, Holiday, etc shopping seasons).

Spin it however you want, but 728,000 desktop sales (Q1 '09) is lower than 977,000 (Q1 '08) at the same time the year before. Additionally, 818,000 (Q2 '09) is lower than 856,000 (Q2 '08) at the same time the year before.

Apple's desktop sales have been up every quarter since 2006 except Q1 and Q2 of this year. The big question is why and how are they going to remedy it? It's likely they'll make significant price cuts to the iMac line just like they did with the portable line earlier this Spring.

[Vulpinemac]

I wasn't talking about quarter over quarter sales. I was talking about comparing Q1 '09 to Q1 '08. This is how most analysts assess Apple's performance since there are natural fluctuations between quarterly shipment numbers (Back to School, Holiday, etc shopping seasons).

Spin it however you want, but 728,000 desktop sales (Q1 '09) is lower than 977,000 (Q1 '08) at the same time the year before. Additionally, 818,000 (Q2 '09) is lower than 856,000 (Q2 '08) at the same time the year before.

Apple's desktop sales have been up every quarter since 2006 except Q1 and Q2 of this year. The big question is why and how are they going to remedy it? It's likely they'll make significant price cuts to the iMac line just like they did with the portable line earlier this Spring.

Maybe, again, you should look at that chart. Whether it's quarter-over-quarter or year-over-year, the important point is that while iPods and portables are falling, desktops are rising to take up some of the slack. Of course, if you were to show a similar chart for all the other brands (something I noticed you specifically avoided) you might see that Apple is the ONLY brand that saw a rise in desktop sales and even with their drops, with the exception of the sub-portable 'netbooks' Apple's sales are the only brand that really show any positive growth at all.

I cannot blame any brand for showing a drop of sales over the last 18 months or so--the financial market has been the pits and is only starting to level out somewhat. For any brand to show any positive growth at all in these circumstances says something about that brand and their products. I recommend we wait until the economy equalizes before we talk about any one brand going 'under.'