Apple’s upcoming iWatch could eventually replace the iPod line entirely, according to one analyst report.
Notorious and often accurate Apple analyst, Brian White of Cantor Fitzgerald, has suggested that the iWatch will be a replacement device for Apple, mainly in terms of revenue.
Therefore, Apple is expected not to offer an iPod refresh this year at all, despite the fact the range hasn’t been significantly updated since 2012 and the iPod Classic hasn’t been changed for over four years.
“We aren’t assuming a material impact to earnings from iWatch, since the iWatch would essentially replace the iPod in the consumer portion of Apple’s product lineup,” said White. “While we don’t expect Apple to discontinue iPod for some time, we also don’t expect an iPod refresh this year, and believe iPod could post year on year unit declines as a result as consumers purchasing iWatch as a substitute.”
We’re not quite sure why consumers would see the iWatch as a direct substitute for an iPod, especially an iPod Classic, unless the device comes with a substantial internal memory size.
Apple has already admitted that iPod sales are dropping. In fact, figures dropped to under $5 billion (£2.9 billion) in 2013 down from the peak of over $8 billion (£4.7 billion) in 2008.
“All of us have known for some time that iPod is a declining business”, said Tim Cook in an interview in January.
On the iWatch subject, White added that it looks like Apple is working on two different sizes for the wrist-worn device’s screen. This is a similar rumour to that surrounding the iPhone 6, which is tipped to have either a 4.7- or 5.5-inch display.
“During our Asia trip last month, our checks uncovered firmer indications that a watch product would enter production in 4Q14, and our more recent checks provided additional detail. We believe two versions of iWatch are likely, with different screen sizes.”
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Via: Barrons
