The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Merrill Analyst Still Expects Flash-Based iPod in Early 2005

TMO Reports - Merrill Analyst Still Expects Flash-Based iPod in Early 2005

by , 2:00 PM EST, November 29th, 2004

Merrill Lynch analyst Steven Milunovich reiterated Monday that he still expects Apple Computer to unveil a flash memory-based iPod in the first quarter of 2005.

In a research note obtained by The Mac Observer, Mr. Milunovich wrote that he believed the new device will be priced between US$149 and $199 and that it could possibly be announced at Macworld Expo San Francisco beginning January 10. He made the same prediction back on October 25 in a commentary first reported by TMO.

Mr. Milunovich wrote that the MP3 flash market is five times the size of the hard disk drive-based player market in units and about two times in revenue. It is also fragmented with the leader, Samsung, at only an 8 percent share. The flash MP3 market is expected to be $2.6 billion in 2004, slightly larger than the HDD player market at $2.3 billion. Combined, the music player market could be $8.1 billion by 2006.

"This is a market Apple should want to participate in because it will pull new customers into the iPod/iTunes 'ecosystem,' he wrote. "We believe consumers will hesitate to switch once they become accustomed to the iPod's scrollwheel or have purchased a number of iTunes (which only work on iPods). The land grab is on."

It should be noted that Mr. Milunovich was also the same analyst who predicted the iPod photo would not debut until sometime next year. Instead, it was announced within a week of his original prediction on October 25.

Recent Headlines - Updated October 1st

Wed,5:25 PM
iOS 8: News In Notification Center
4:19 PM
The Name Your Own Price Learn To Code Bundle
4:11 PM
Waterfield Spinn Pouch Case for iPhone 6/6 Plus: Excellence in Leather
3:40 PM
‘Someone’ Targets Hong Kong Protesters Using Jailbroken iPhones with Malware
2:55 PM
iOS 8: Make Cellular Phone Calls from Your iPad Using Handoff
2:01 PM
New Aerial Shot Shows Apple Campus Construction Underway
1:40 PM
iPhone 6 vs iPhone 6 Plus: Dr. Mac’s Final Showdown
1:23 PM
TMO Daily Observations: 2014-10-01
11:02 AM
Report Claims Gold iPad Coming Soon
10:31 AM
Evercore Raises AAPL Target on Strong iPhone 6 Demand
10:03 AM
Apple Tells Developers to Submit their OS X Yosemite-compatible Apps
9:18 AM
iTunes Store Adds City of Hope Donation Page for Breast Cancer Awareness Month
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!