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  (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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I thought that
By nah on 3/17/2009 9:46:04 AM , Rating: 2
Apple's products were Veblen Goods http://en.wikipedia.org/wiki/Veblen_goods
--however, I now realise that they're only normal goods http://en.wikipedia.org/wiki/Normal_good

how disappointing




RE: I thought that
By michael2k on 3/17/2009 12:31:52 PM , Rating: 2
Huh. You're disappointed that Apple made the transition from luxury to normal? Doesn't that make you a snob?

I'm glad they moved to normal; it makes their products more accessible.


RE: I thought that
By nah on 3/17/2009 1:29:31 PM , Rating: 2
I have bought no Apple products--that isn't to say that I haven't owned them----and I intend to keep it that way--although I do think that their after sales service is excellent and partially compensates for their outrageous pricing


RE: I thought that
By quiksilvr on 3/17/2009 1:42:30 PM , Rating: 1
Ditto. Plus their highly questionable business practices keep me away even more. The iPhone was an amazing hardware bogged down by fascist software.


RE: I thought that
By michael2k on 3/17/2009 7:43:41 PM , Rating: 2
Huh, again. I thought the iPhone was decent hardware with amazing software.

Anyone can put together a 480x320 screen; some have gone up to 640x480 or 800x600.
Anyone can bundle bluetooth, WiFi, and EDGE; some have already done so.
Anyone can add GPS; again, some have done so.
Anyone can add a touch-screen; some have done so.

HTC has some incredible hardware itself.

But it's the software that is special because you only have four choices:
WinMo6
Android
Symbian
Roll your own

Apple rolled their own, and that way no one can borrow it.
WinMo 6 is atrocious, 6.5 is a little better, and 7 is over a year away.
Android is great, but still behind OS X mobile
Symbian is rock solid, but behind OS X mobile
No one else really has the chops to "roll your own" except RIM.


RE: I thought that
By afkrotch on 3/17/2009 3:33:28 PM , Rating: 2
Doesn't their need to be some kind of demand for veblen goods first? Think that's why they're just normal goods now. Apple found out they can't just up and make a veblen good.

Now you can say that Apple products create a snob effect.


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