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iPod Sales Strong Despite Resupply Issues

by , 8:45 AM EST, December 5th, 2005

iPod inventories are strong, but only at the Apple Store, according to a Piper Jaffray follow-up report. Despite the limited availability in some retail stores, analyst Gene Munster expects iPod sales to remain strong, and that they may exceed his expectations.

The Piper Jaffray report compared ten Apple retail stores, and 11 third-party retailers for on hand iPod inventory over Thanksgiving weekend, and again on December 1 and December 2. The second study also included an additional nine third-party retailers. In both cases, Apple's own retail stores had a larger selection of iPods available than the third-party retailers.

Over Thanksgiving weekend, eight of the ten Apple stores surveyed had all of the iPod models in stock, and that all of the 11 third-party retailers were missing at least some of the models. Several of them, in fact, were completely sold out of their entire iPod inventory.

In the follow-up survey, eight of the ten Apple stores again had the full iPod product line in stock. Third-party retailers, however, were having trouble getting their stock replenished. Only two out of the 20 retailers had all of the models, but they were still missing some colors. 17 of the 20 were missing at least on style of nano, and 15 of the 20 were missing at least one style of the video capable models.

Based on the study, Mr. Munster expects that some of the iPod sales estimates for the December quarter other analysts are making are too high. He is predicting total iPod shipments to hit 9 million units, but feels Apple may be able to over shoot that number by a small margin.

The iPod is expected to remain a top-seller, and maintain its position as the market leader in digital music players. Mr. Munster is predicting that more than 37 million iPods will ship by the end of 2005, and that those sales will fuel the iPod "halo effect," exposing more and more Microsoft Windows users to the Macintosh.

Apple is currently trading in the pre-market at US$72.25, down 0.38 (0.52%) from its Friday high of $72.63.


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Observer Comments

Show: Subjects Only | Full Comments
View Name:Guest
Subject: iPos supply
View Name:Guest
Subject: iPod supply
View Name:Guest
Subject: iPod Supply
Close Name:Al Swearengen Posts: 339 Joined: 10 May 2005
Subject: About as much

Quote
Guest wrote:
Gee. What's this little study tell you about how Apple treats it's dealers? Can anyone say unfair trade practises?


How well did the 3rd party stores treat Apple? Many of them pushed Windows computers and other MP3 players while disparaging Apple. Not to mention they had the Apple section of the store tucked away in a far corner where it was neglected. Now that the iPod is ruling the roost, they want Apple to be their new best friend and indeed have spruced up the Apple section

Furthermore, it has been my experience that shopping at an Apple retail store makes you feel like a very important customer no matter how small the purchase. I have also felt that way at some of the very Apple-centric 3rd party stores. I have not always been treated that way at multibox stores, there are exceptions of course.

Close Name:acdc1174 Posts: 706 Joined: 16 Apr 2004
Subject: Re: About as much

Quote
Al Swearengen wrote:
Quote
Guest wrote:
Gee. What's this little study tell you about how Apple treats it's dealers? Can anyone say unfair trade practises?


How well did the 3rd party stores treat Apple? Many of them pushed Windows computers and other MP3 players while disparaging Apple. Not to mention they had the Apple section of the store tucked away in a far corner where it was neglected. Now that the iPod is ruling the roost, they want Apple to be their new best friend and indeed have spruced up the Apple section

Furthermore, it has been my experience that shopping at an Apple retail store makes you feel like a very important customer no matter how small the purchase. I have also felt that way at some of the very Apple-centric 3rd party stores. I have not always been treated that way at multibox stores, there are exceptions of course.


What he said.

View Name:Guest
Subject: third party resellers/dealers
View Name:Guest
Subject: Apple has better supply chain mgmt than Dell
View Name:Guest
Subject: Apple screws loyal retailers
View Name:Guest
Subject: Origins of Apple Retail
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