Print 90 comment(s) - last by Sazar.. on Mar 20 at 2:13 PM

  (Source: Reuters)

Apple's sales plunge: January '08 thru February '09
Apple is stuck in recession purgatory

It’s been a fast paced start to the year for Apple.  The electronics superpower has rolled out a new laptop, new desktops, and even a new iPod Shuffle -- priced for the recession at $79.  However, what would normally make for another record setting start of the year for Apple is fast turning south as fears of the recession has sent customers fleeing from Apple's pricey luxury lineup.

After seeing its sales growth surpassed by PCs for the first time in months in January, the latest figures show that February was far worse for Apple.  The NPD Group has released its sales figures for the month and they are worse than even Piper Jaffray’s Gene Munster's pessimistic forecast.

Both iPod and Mac sales were down 16 percent year-to-year.  The worst predicted by analysts was around a 4 percent drop.  Analysts were somewhat predicting the drop as last February was a particularly good month for Apple, and Apple only released its new desktops and iPod in March.

Munster's new predictions place total iPod sales for the quarter ending in March at around 9 to 10 million units.  He predicts that 2 to 2.2 million Mac computers will ship in the same period.  The Street is predicting 9.5 million iPods.  These figures are not significantly worse than last year, and represent analyst optimism that Apple's new products will lead to a strong March.

Thus, the real test for Apple will be how its sales have fared at the end of March.  While January was a letdown and February was undeniably downward trending for Apple, a strong March could salvage an otherwise rocky quarter.

One potential ace in Apple's sleeve is the announcement of the iPhone OS version 3.0 later today.  No one knows quite when Apple will release the new OS, but many are speculating wildly, including guessing at new hardware (every past x.0 release has been accompanied by new hardware).  Big news could stave off the Wall Street wolves for a little while, even if Apple's sales disappoint.

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No kidding!
By Bender 123 on 3/17/2009 9:22:11 AM , Rating: 5
In a terrible financial climate, where your entire business model (at this point) is incremental upgrades to get people to buy the latest and greatest, what did we expect?

I love my 1st gen Touch, but the 2.0 features were not enough to make me give up $200+ to upgrade. I also have my 80 Gig Zune, which I find better than the iPod Classic, sound quality wise and upgradability wise...There just has not been enough innovation in the last few rounds of upgrades to get me to throw down cash.

RE: No kidding!
By msheredy on 3/17/09, Rating: -1
RE: No kidding!
By phazers on 3/17/2009 4:29:20 PM , Rating: 3
Actually quite a few here have 80GB Zunes. Mine works perfectly fine, and came with the free bonus of pissing off Mac fanbois :)

RE: No kidding!
By afkrotch on 3/17/2009 4:35:34 PM , Rating: 2
I own an 8 gig and an 80 gig (upgraded to 120 gig) Zune. Both work well and are cheaper than an iPod.

Might try out the newer iRivers though. I dislike not having an equalizer.

RE: No kidding!
By omnicronx on 3/17/2009 5:39:55 PM , Rating: 2
I love my Zune.. too bad all the accessories are overpriced and cost almost as much as the player itself.

Now it just sits because I am not willing to buy an $90 car adaptor.

Meanwhile I bought my girlfriend a car adapter, and a mini ipod stereo for under 100. You have to admit, buying an ipod does makes sense, unless you only use for an mp3 is player is solely a portable device.. i.e you don't plan on buying any accessories.

I like the interface and wireless sync of the zune, but the countless amounts of ipod accessories trumps both of those.

RE: No kidding!
By Sazar on 3/20/2009 2:13:10 PM , Rating: 2
I agree, the accessories suck. That was my biggest regret with my Zune. I loved the device but the licensing agreements Microsoft has are so stupid. I couldn't even get a decent car kit when I had my 80GB.

Eventually sold it and got me an iPhone. Now I just listen to Pandora all day long :)

"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein

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