When Apple CEO Steve Jobs unveiled the iPad early this year, he was asked if Apple's latest product was just a bigger version of its already highly popular iPod. Of course, Jobs said no; the iPad was a completely different device, unique in its own right.
However, Apple's sales figures for the first month the iPad was available for purchase are raising new questions about how consumers view Apple's product lineup.
There are two reasons for discounting the cannibalization theory, according to Harry Wang, director of research, mobile, for Parks Associates. First, the iPod and iPad are different devices, serving different purposes; and second, the iPod market is reaching a saturation point.
"The iPad is good for reading if you're in certain place like on an airplane," Wang told MacNewsWorld, "but an iPod is better in other situations, particularly for listening to music while you're jogging or doing some other activity."
In regard to declining iPod sales, "a lot of people already have purchased iPods," Wang said. "It's becoming a saturated market. iPod sales have been declining at single-digit rates every month for the past year."
iPod sales have been declining at a faster pace in recent months, Wang observed, going from the 4 percent range late last year to close to 8 percent earlier this year. Still, he questioned whether the 17 percent reported by the NDP Group is accurate.
"I don't think they have figures for Wal-Mart," Wang said, "and we have found that Wal-Mart shoppers looking to purchase MP3 players will select the iPod over other devices -- and that can have a significant impact on the market."
From the article, "There May Be an iPod Killer on the Loose" by Sidney Hill
