Tim Cook: iPod is a 'Declining Business'

[peterdevries]

"Why invest in the huge manufacturing, inventory, shipping, and advertising logistics for what is rapidly becoming a niche (I need one just for the gym) kind of product? "

According to your theory then, Apple should abandon the Mac Pro.

You misunderstand product life cycles. The Mac Pro is a product that is not in decline, unlike the iPod, which has been for a long time. The Mac Pro is a niche product, but one with a very large profit margin in an industry that will not transition into decline for a very long time.

 

[preyan]

Tim needs to GO!!!

Steve Jobs would have seen opportunity to do something drastic to revive the iPod. Tim sees recent numbers and believes it needs to go.
No doubt that iPod Touch will always be the step child to iPhone but I believe with a drastic change, they can revive. Bigger screen, 3G capability, better chip and ram, etc.

Steve revived Apple and the illegal downloading music industry. He saw opportunity.

Tim needs to pack his bags. He's taken Apple from a leader to a follower! So sad. And they're following a company that copies them

 

[Jessica Lares]

When the iPod was king, our computers had 20 GB HDD at minimum. Now it's 500GB at minimum. The built-in speakers are better, they can actually use the internet and play music without skipping now, we have home sharing, we have bigger file sizes, and if you were buying music from day one of iTunes until now, that library has easily outgrown the 128GB iPad.

 

[peterdevries]

Steve Jobs would have seen opportunity to do something drastic to revive the iPod.

Nonsense, there is nothing that can be done to revive this product category as it is being replaced by iPhones, Touches and iPads. Not even Steve Jobs would have been able to change that.

Go and take a look at this

The only way to break out of a product decline is to provide a new product with additional value to the customer, and that is exactly what Apple did with the iPhone.

 

[JackieInCo]

The Classic is still the best option for people that actually collect MUSIC and have a car with a USB input.

My Honda has tight integration with my iPod Classic

I still use my 160GB Classic in the car everyday. Nothing else comes close to it.

I tried using my old 6th generation Nano for a week and now wonder why I wasted money on it. I've also hated using my iPhone as an iPod although my cars stereo works with it as well, it's just not a click wheel iPod and the storage is not there yet.

I did buy a 128GB IPad Mini last month and am thinking of setting it up with my cars Bluetooth to see how it goes for this week.

The iPod was my first Apple device but it wasn't till the first iPhone that made me purchase my first Mac a week after purchasing that iPhone, a 2007 15" MBP.

As far as iPods, I bet we don't see anything new this fall. They'll keep what they have for another year at least.

 

[macs4nw]

…..I agree that streaming has dented the market but again if Apple had launched HD quality tracks like we all asked for a few years ago then I think many people would be willing to continue to purchase their music. The music industry could easily limit the streaming services to SD music whilst providing HD music as a purchase only option. I'm sure that would start to increase their revenues.

Having spent £600 on an iPod speaker I would happily carry on purchasing rather than streaming music if there was a quality difference.

HD music downloads via iTunes --as opposed to the HD downloads that are available presently from companies such as HDtracks and the like, with their relatively limited catalogs-- are on the wish list of many audiophiles.

Until that day arrives, significantly better sound can be 'squeezed' out of your 256 kbps files with fairly reasonably priced outboard D/A converters.

http://highresolutiontechnologies.com/index.php
http://www.audioquest.com/

 

[thewitt]

There are too few audiophiles to support HD

 

[SBlue1]

I know everybody already has an iPod. I do. Anyway I would instantly buy a new iPod Nano if Apple would offer more Storage for gods sake! My fifth gen Nano is on his last leg plus it only fits a quarter of my music collection.

I don't want to listen music on my iPhone. The storage and battery time on my iPhone is too limited anyway. And I don't want a big and bulky iPod touch.

Apple, give us a 32 or even 64 Gig Nano!

 

[Michael Scrip]

Low-end iPhones aren't comparable in price to iPod Touch - see my post above. The point is that there is a sizable market out there for "non-smartphone smartphone" (i.e. iPod Touch). All the people I know have at least one in their household for their kids or elderly parents.

It costs very little overhead for Apple to maintain iPod Touch line - they share practically all hardware components with earlier gen iPhones and they run iOS. Apple is not going to drop that line & concede that market - no chance no how.

I thought the point of this article is that there ISN'T a market for such a device...

Or it's at least declining to a point ---> Tim Cook: iPod is a 'Declining Business'

I realize it probably wouldn't cost too much money to keep the iPod Touch around... but it does cost money.

Sometimes companies just have to make a decision.

 

[iSamurai]

I like the shuffle. It just works. Simple, small and light, I use it for cycling and running battery life is excellent with no screen. It just needs a repeat mode and up the storage capacity...

 

[SBlue1]

If someone can afford an iPod Touch, they can afford to buy an older model iPhone, like a 4 or 4S. They're pretty damn cheap now, but are still good devices.

An iPhone 4s is available at 16 Gig only. My old nano has this much. I need more.

 

[knightlie]

not many people need an iPod when their phone already has one. the iPod shuffle i believe could stay alive. running with one of those is almost like nothing is there.

Not everyone has or needs a phone. If the iPod line is dropped then the iPod Touch should be rebranded as iPad Mini, ideally with a cellular option.

 

[roadbloc]

I hope they don't choose to ditch the iPod Classic. I feel there is enough market for another generation (well, me basically). Maybe one with an SSD, backlit scroll wheel and RAW support would be great. I'd pre-order it straight away.

 

[shaunp]

I used to love my iPod classic because 160GB meant I could take my entire music collection with me. Then Spotify happened and I no longer buy music. The iPod classic is in a drawer and very rarely does it get used. When it dies I won't be getting another, why would I when my phone is capable of so much more?

 

[Menneisyys2]

Nothing wrong with cannibalization by your own products. The iPod ran its course.

And also add that Apple has deliberately dumbed down the iPod touch line starting with the 4G. Before that, it was at least as good, component-wise, as the then-current iPhone. (Actually, the 2G and 3G iPt's were even significantly faster than the iPhone 3G and 3GS, respectively.)

The 4G had 256M RAM and a non-IPS screen (512 / IPS for the iPhone 4) and the dumbing-down continued with the 5G, which is significantly worse than the iPhone 5, while not THAT much cheaper.

No wonder almost no one purchases iPt's any more. It's the result of Apple's own dumbing down and nothing else.

----------

Nonsense, there is nothing that can be done to revive this product category as it is being replaced by iPhones, Touches and iPads. Not even Steve Jobs would have been able to change that.

Go and take a look at this

The only way to break out of a product decline is to provide a new product with additional value to the customer, and that is exactly what Apple did with the iPhone.

And also add that it was Jobs' decision to deliberately dumb down the iPod touch line in order not to compete with iPhones. The 4G was released in Autumn 2010, well before Jobs' death.

 

[shaunp]

I hope they don't choose to ditch the iPod Classic. I feel there is enough market for another generation (well, me basically). Maybe one with an SSD, backlit scroll wheel and RAW support would be great. I'd pre-order it straight away.

I think it's going to be replaced by the touch if it becomes SSD based. Don't get me wrong I love the design of the classic - it's the only iPod that I can operate while it's in my pocket (i.e. change tracks), I can't do that with my iPhone. For the iPod to become relevant again it has to support services like Spotify and iTunes Radio.

 

[kalsta]

I'm not a fan of this. I'm 13, can't get an iPhone, have no reason to get an iPhone, but I like iOS, and the iPod touch seems to be on the chopping block as more and more kids just get iPhones. Even Steve Jobs said that the iPod touch was just training wheels for the iPhone, and so when kids just get iPhones instead, the iPod touch is basically selling 0 units. So....If the iPod touch doesn't survive until I get a driver's license and have a reason for a phone (GPS plus contact with my Mom) I'll basically be boned. I'm not really angry with apple or saying that they should keep the iPod touch for 1 person, I'm just saying I'm kinda screwed. And also iPods are just generally cool, I love the things for some reason.

You're not alone! We love iPod Touches in our family. Only one of my kids is old enough to have a phone, but the cost of an iPhone isn't in her budget until she gets a job, so she has an iPod plus an el-cheapo phone. It also means she can take her phone out without being too precious about it.

Really, I don't know why more people don't do this. The iPod Touch is still a fantastic little computer.

 

[the8thark]

Declining business, not dead business. Now is the time to deal with it and not when it dies. SO when it gets even worse Apple will have a way to replace the lost revenue.

 

[John.B]

Because that would make it an iPhone. Not having carriers provide calling + SMS to the device won't do much to hinder its use as a phone. There's iMessage, Whatsapp, Kik, Skype, Viber, Google Voice and many more options to fill that gap

And you think people don't want what would essentially amount to an "iPad nano" with LTE data? Why have to pay for voice + text + data plans if you don't need the voice + text?

Not everyone has or needs a phone. If the iPod line is dropped then the iPod Touch should be rebranded as iPad Mini, ideally with a cellular option.

Pretty much this, except the name "iPad mini" already defines the small factor iPad.

 

[dukebound85]

I'm surprised they even sell the iPod Classic still. It will soon be overtaken by the iPhones in terms of storage capacity, it has no Lightning, and they haven't even changed the prices.

Why does it need lightning?

 

[OlMighty]

The classic should remain, but maybe upgrade it to more of a pro product - high capacity, optical output possibly, things that make it more of an audiophile product. A brushed black option would be very cool.

As tempted as I am by the nano/shuffle/touch (incidentally also the name of my favourite bedroom move), I have an iPhone which makes the touch completely unnecessary and I can't justify buying a nano or shuffle which only perform one function of the device I already own. The classic, however, I can be persuaded to buy if it had the option to hold more music and was higher end.

Although completely unlikely, I'd love it if it could have some aTV functionality - I download my films from the iTunes store, keep them on my high-capacity iPod and just plug the whole thing into my tv - it doesn't need to be able to play them, just show them on the tv.

 

[Lesser Evets]

It's taking a natural decline due to the iPhones and iPads. Nothing mysterious here.

The average consumer has enough money for one roll-of-the-dice. They choose the most-versatile product: phone, if necessary to have a phone, or iPad, if they want a computer that isn't difficult to work with due to the size.

Few people want an iPod classic. The shuffle is great, but expensive for what it delivers. The iPod Touch is great, but it is too close to an iPad in price. The nano is expensive and lacks versatility. Their entire iPod line is hindered by price vs. benefits. Unless they change the price or the benefits, their market will take another 66% dive over the next 4 or 5 years.

It does't mean the products are bad. They are just overpriced for what they deliver. Apple should probably lock in the tech on all those devices and lower the prices year after year. Shuffle--$29; Nano--$99, iPod Touch--$129 (sans camera)/$169 (w/camera).

 

[Alex72]

An iPod is not a content creation machine.

What are you defining as content? Plenty of people routinely use the last two generations of iPod Touch to shoot video and photos, which are often edited or manipulated on the device. That's a form of content creation, yes?

 

[69650]

I think you think there are a lot more "audiophiles" than there are. It's clear from your posts that you are such a person, and as such, you probably have friends who are also. But if by "audiophile" we're talking about a person who insists on lossless music and would spend several times the price of a regular speaker for a high end system to better hear the nuances of the music, then I'd suggest to you that you are a very small minority.

Apple does not cater to small minorities, even ones that are willing to spend a high dollar value per person on equipment - best example being "gamers," by which I mean not someone who plays games, but someone who wants every FPS on the latest cutting edge graphics games.

Does it matter that these people are not a mass market? I would argue that the MBP or Mac Pro is for a minority of people. But Apple still do it because it's profitable and because it brings wealthy people into their ecosystem. I know lots of people willing to spend £300 - £600 on a quality iPod speaker from Bose, Sonos, B&W, etc. Most of them are not audiophiles, they just like good quality sound. I don't buy CDs anymore but I would still pay a bit extra for HD music over SD music in the same way that I prefer to buy HD films.

At the moment I use an iPod touch to store what music I can and just leave it in the house because I don't want to fill up my iPhone. If they made a 128GB or 256GB version of the iPod touch I'd buy one today simply for the convenience of storing all my music on one device. If that music was in HD then all the better. I wouldn't necessarily classify myself as an audiophile but I do like to listen to music and am willing to pay a bit more for good sound quality.

Equally I'm not a hard core gamer but I do like to play the occasional game when there's nothing on the TV. If they upped the iPod touch screen to 5" that would make it so much better. I could ditch my PSP and it's over priced games.

That's my point. Apple could rejuvenate the iPod in so many ways if they wanted to but they seemingly don't want to for some reason.

 

[NewbieCanada]

Niche market? Are you joking. Walk in to any high end hifi retailer and you will see the iPod speaker market is booming.

And most of them are being connected to iPhones. Yes, iPods are a rapidly shrinking niche market.