The iPod and iTunes accounts for only about 1/3rd of Apple's revenue... the rest comes from its computers. It is doing quite well.
Mac demand may offset iPod sales
Some salient quotes:
""UBS analyst Ben Reitzes today predicted sequentially lower iPod sales for Apple in the third quarter of this year, but expects new iPods next quarter and noted that MacBook demand is solid. 'To reflect checks that indicate more interest for new MacBooks and solid education buying, we are raising our 3Q06 estimate for Mac units to 1.32 million units (was 1.24 million) and our FY06 unit estimate to 5.1 million (was 5.0 million),' Reitzes wrote in a research note obtained by MacNN. 'We now estimate iPod unit sales of 7.8 million for 3Q06 (was 8.4 million) reflecting year over year growth of 27 percent (-8 percent quarter over quarter) and FY06 unit sales of 39.8 million (was 40.9 million).' UBS is maintaining a 'buy' rating for Apple shares with a price target of $90, hovering above its peers due to faster growth and higher margins," MacNN reports . . .. . . For every 75,000 Macs sold, Apple earns $100 million in revenue (not including attach rates for software, service, and peripherals), while every 500,000 iPods equates to approximately $100 million in revenue, according to the firm. . . .
"UBS has noted a shift in consumer interest toward Macs and away from iPod display counters at Apple retail locations. Mac displays appear 'jammed' with customers, while iPod displays are less frequented than previous quarters, according to the company," MacNN reports. 'While we believe increased focus on Macs should drive solid near term results, we also believe increased interest in Macs should lead to longer term PC market share gains, which we believe can provide significant top line benefits and earnings power," Reitzes added."
Yeah, they've only been around 20 years, and that's not nearly long enough to establish any kind of reputation or solid base. Too bad they couldn't have gotten a more solid footing in the personal computer market like, umm, IBM.
How many times have we heard that prediction over the decades? Currently, Wall Street says Apple's iPod business is slowing down, and their Mac business is picking up. The Mac business is profitable, healthy and growing.
Even the most diehard Microsoft customers are getting tired of advice like "a full reformat is good for the computer every two years anyway..." That is why the Apple Stores are full of Windows users buying their first Macs. If you want a computer that just works, get a Mac.
You ripped that right out of the technology headlines..... from 10 years ago, didn't you?!
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I think Mac won't make it long term with their computers.
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Yeah, a twenty-eight year flash in the pan.