iPod Is Dominating the Market, and There Is More to Come
iPod contributes 12-14% of total company revenues, a number industry experts believe will continue to increase. With this increase comes pressure on gross margins, as the blended iPod gross margin of 20% compares unfavorably with Apples corporate average of 27-28%. The iPod helped augment Apples growth by expanding its addressable market from the core computer market, which continues to grow, but at slower rates. To increase penetration of the rapidly growing MP3 player market, Apple launched the iPod Mini internationally in July 2004, and HPs iPod launch is scheduled for later in summer. http://www.ipodreviewforum.com
Apples entry into the digital music player market (MP3 market) with its popular iPod expanded the companys addressable market and signaled a turn in Apples strategy. The iPod is a cultural phenomenon that is capitalizing on the convergence of digital consumer electronics and the computer, and Apples position as an early mover enabled it to achieve the number-one position in the marketplace. iPod adoption continues to accelerate, with little indication of a slowdown. It took Apple approximately...
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