Holiday iPod Sales May Have Beaten Expectations

[MacRumors]

Hitwise has issued a report stating that the market share of visits to Apple's iTunes website was up 413% on Christmas Day 2006 when compared to Christmas Day 2005. Hitwise attributes the spike to new iPod owners flocking to download iTunes.

Indeed, the spike seems to have caused a slowdown of the iTunes store and error messages for some on Monday. However, analysts who spoke to CNN still believe the experience will be positive for Apple.

"It's actually created more positive buzz among analysts -- traffic was so great it blew up the site," said Gene Munster, senior research analyst at Piper Jaffray. "If anything it could be a positive -- demand was better than they were expecting."

[...]

"What you're seeing is the tremendous success of the iPod," said Michael Gartenberg, vice president and research director with JupiterResearch. "No doubt it was a very, very popular gift, and no matter how well you plan on the server side of the equation, there are always times when you get caught short."

Apple topped Amazon.com's bestseller list for MP3 players, and Hitwise indicates that Apple continued to perform favorably against increased competition, beating Microsoft's Zune.net by 30 to 1 in site visits.

[dashiel]

talk about "i've got some good news and some bad news" apple's stock is certainly getting some schizophrenic news over the past week. i don't know about anyone else, but if it reaches $75 before MWSF i'm stocking up.

[Lito]

iPods will soon unite to take over the planet!

(And Homer will laugh at the cat falling down the stairs... )

[spine]

Does all the xmas iPods mean poor sales for an iPhone?

[narco]

I thought iTunes came on a CD with every iPod?

Fishes,
narco.

[PlaceofDis]

Originally Posted by spine

Does all the xmas iPods mean poor sales for an iPhone?

an Apple based cell phone really won't compete with the full line of iPods even if it is an MP3 player too. (oh and not to nit-pick, but Apple can't and won't use the name iPhone for any cell phone they release since its an actual product made by Cisco systems)

[cecildk9999]

It's been so amazing these past few years to see the presence that Apple has built for itself out of the success of the iPod. My Dad got a new shuffle for Christmas, and quite a few of my friends got iPods; what surprises me most is the number of people who are expressing interest in getting their first ever Macintosh computer. People who I never dreamed would buy a mac (and attacked me all these past few years for having one) are now becoming genuinely interested.

[balamw]

Originally Posted by narco

I thought iTunes came on a CD with every iPod?

iTunes software: Yes
iTunes store music & videos: No

No sign of a free album sampler this year?

B

[Synapple]

Originally Posted by narco

I thought iTunes came on a CD with every iPod?

Fishes,
narco.

It doesn't anymore... since the last update I think. At least not in the nano: doesn't fit into the box.

[cecildk9999]

Originally Posted by narco

I thought iTunes came on a CD with every iPod?

Fishes,
narco.

they used to, but now Apple's slimmed down the packaging and you have to download from the web (at least for shuffles and nanos)

[balamw]

Originally Posted by cecildk9999

they used to, but now Apple's slimmed down the packaging and you have to download from the web (at least for shuffles and nanos)

Duh! I realized my mistake thinking about the new packaging.

B

[danielwsmithee]

Originally Posted by cecildk9999

they used to, but now Apple's slimmed down the packaging and you have to download from the web (at least for shuffles and nanos)

The same is true for the new Video iPods. I would think they would just ship the iPod with the iPod in disc mode and have it contain the installers. That may be more of setup hassle then it is worth though.

I know my the Apple store near my house got dangerously close to running out of many different forms of iPods. Of course that was probably caused by not getting any shipments for a week because of the blizzards here.

[neven]

Originally Posted by narco

I thought iTunes came on a CD with every iPod?

Regardless of the basic confusion in your question, the answer is no. Nanos and Shuffles don't come with installation discs. I know that there are probably two or three people out there who don't have Internet access, but I think that inconveniencing them is a small price to pay for smaller packaging and fewer throwaway discs.

[jimN]

Could they put it on the ipod so that it could install from there when connected? It would be optional ofcourse and it could be deleted afterwards but this would allow them to get people up and runnign with the minimum of fuss and still push their own software.

[balamw]

Originally Posted by jimN

Could they put it on the ipod so that it could install from there when connected? It would be optional ofcourse and it could be deleted afterwards but this would allow them to get people up and runnign with the minimum of fuss and still push their own software.

Probably not a good idea given the preloaded viruses earlier in the year.

B

[ChrisA]

Originally Posted by narco

I thought iTunes came on a CD with every iPod?

Fishes,
narco.

No, With the new small plastic packaging there is no way a CD could possibly fit inside the package. Both the Nano and the Shuffle come in a package that is roughly 1.25 x 1.25 x 4 inches on a side. I think the full size iPods come in larger packages that might allow a CD to go inside.

Here is an Idea: Why can't Apple put the iTunes and Quicktime software for both PC and Mac INSIDE the iPod. Even a Shuffle has 1GB of RAM which is more space then a CD. So when I fisr plug in the iPod it mounts up on the desktop as a mas storage device and inside is the software. This would take a huge load off the servers at Apple.com I think to iPod should come with some demo music loaded too. I'm sure everyone wants to see how it works after they open the box.

[MrPineapples]

Isn't the lack of disk the reason for all the hits, they won't of been nearly as high last year if most of the people used the disk?

[BornAgainMac]

Originally Posted by ChrisA

Here is an Idea: Why can't Apple put the iTunes and Quicktime software for both PC and Mac INSIDE the iPod. Even a Shuffle has 1GB of RAM which is more space then a CD. So when I fisr plug in the iPod it mounts up on the desktop as a mas storage device and inside is the software. This would take a huge load off the servers at Apple.com I think to iPod should come with some demo music loaded too. I'm sure everyone wants to see how it works after they open the box.

I am not 100% sure but I think on Windows it doesn't even see the iPods as storage devices. I was able to mount a shuffle but not the disk-based iPod. Maybe that has changed in the last year.

[PlaceofDis]

Originally Posted by MrPineapples

Isn't the lack of disk the reason for all the hits, they won't of been nearly as high last year if most of the people used the disk?

no. that would just be people downloading iTunes then.

this is the iTunes Store hits. meaning that usually once you hook up a new iPod to your computer iTunes jumps up and recognizes it, you set it up and it typically takes you directly to the store. so it does possibly show a huge amount of new iPod sales.

[failsafe1]

That proves what I suspected Christmas day. My wife was trying to download a song she had heard the day before and was unable to do so all day. I said must be all the new iPod customers. Good for Apple.

[jbt]

Originally Posted by PlaceofDis

no. that would just be people downloading iTunes then.

this is the iTunes Store hits. meaning that usually once you hook up a new iPod to your computer iTunes jumps up and recognizes it, you set it up and it typically takes you directly to the store. so it does possibly show a huge amount of new iPod sales.

Sorry to correct you but the stats are for visits to the itunes website where you download itunes. not the itunes store. a high proportion of which is probably attributed to the lack of cd.

[Multimedia]

Love the new clip-on Shuffle. Keep it clipped to my T-Shirt sleve 24/7. Headset wire runs down my back and in through the sleeve so now I have access to tunes any time I need them to fill silence. My iPod is now exclusively for Video when I am sitting in transport.

I will be very surprised if the iPod Shuffle isn't something that everyone needs and will become, if it isn't already, the fastest and biggest selling mp3 player in history. It is perfect form, design and functionality.

[Amdahl]

Merry Christmas to Apple! Scrooge & the Grinch were kept away this year!

[Kid Red]

So who's eating crow now? The Register is it? How can iTunes have a 400+% increase in sales when iTunes is in hot water falling out of profit? Hmm....

[Macmaniac]

The only downside to not including the CDs with the 'Pods is that for the folks that still use dial up its almost impossible to download iTunes. Although that population is dwindling, and I am thankfully not part of it.