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:
Barron's: Music-Ready Cellphones Will Hurt Apple iPod Sales

Barron's: Music-Ready Cellphones Will Hurt Apple iPod Sales

by , 12:15 AM EDT, June 27th, 2005

Apple Computer (AAPL) stock is expected to take a hit Monday after a Barron's newspaper report (subscription required) concluded that as more cellphone companies add the capability of downloading and playing music, sales of the popular iPod digital media device will slow.

The report said that by 2006, many new handsets will carry software, circuitry and data storage for portable music. It said this will let people download songs from personal computers, like iPods, but also download music via a wireless connection to competing music services.

"While optimists think Apple could sell 45 million iPods next year, mobile-phone makers will be selling more than 750 million handsets," wrote Bill Alpert in a store entitled 'Bites Off the Apple'. "All those handsets could weigh on the iPod's growth prospects -- and Apple's premium stock valuation. Cellphone users won't need to lug around a second gadget to have their music."

The report went on to say it will be sad to see the iPod "overtaken by the common cellphone" and quoted an industry executive as saying he sees a day not too soon away where Apple's marketshare of the digital music business could shrink from 90% to just a few percent.

The report said that Apple's dominance with the iPod will dwindle slowly as today's mobile phones sold in the U.S. don't have, and will not have for some time, the capacity to store as many songs as an iPod. In addition, the report said it will be some time before state-of-the-art, third-generation wireless networks are in place in the U.S. that offer more reliable and faster downloads of music files.

Barron's said an Apple spokesperson "declined to discuss looming competition from cellphones, after the newspaper had tried for several weeks to get comment."

Recent Headlines - Updated December 20th

Fri,5:31 PM
Google, Samsung can’t Top Apple’s Unreleased Apple Watch
5:10 PM
Report: Apple Pay is Disrupting and Transforming Mobile Payments
4:04 PM
Apple Raises Prices in Russian App Store Amidst Ruble Meltdown
3:55 PM
The Unexpected Ways Apple Watch Will Crush the Competition
2:29 PM
6-Ft MFi-Certified iOS Lightning and micro USB Convertible Charging Cable: $21
1:41 PM
TMO Daily Observations: 2014-12-19
11:02 AM
Apple CEO Tim Cook Calls BS on BBC iPhone Factory Film
9:11 AM
McDonald’s Supersizes Sales with Apple’s iBeacon Tech
Thu,8:09 PM
BBC Films ‘Apple’s Broken Promises’ for Worker Conditions in Pegatron iPhone Factory
6:20 PM
Save 96% on The World’s Largest iOS 8 + Swift eLearning Bootcamp
5:30 PM
Apple Pay Expansion Worldwide Will Have Vast Repercussions
2:07 PM
The Story Behind Apple’s ‘The Song’ Commercial (Video)
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!