Apple’s iPod slowly becoming irrelevant?

A few analysts have looked over Steve Job’s adjusted revenue numbers he released last week, and it shows that iPod sales last quarter  were only 14.2% of Apple’s total revenue. This is down from 55.6% in the first quarter of 2006. Ever since that quarter, Apple’s iPod sales have been slowly diminishing. Check out the following graph:

Although sales of the iPod have been declining as of late, revenue numbers for Apple show that this dip in iPod sales have had little to no effect on revenue for Apple.

The only explanation I can come up with to the declining iPod sales is because the iPhone is doing so well. People are opting for an iPhone, which is basically just an iPod Touch with a phone built-in. So Apple really has nothing to worry about in terms of iPod sales, but I’m pretty sure Steve Jobs is still concerned over the sales of his baby. If it weren’t for the iPod, Apple wouldn’t experience the same success they are experiencing now. The iPod is what made Steve Jobs and help built the Apple selling machine.

- Geoff

[Source: CNNMoney]

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