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Apple’s iPod Problem

December 4, 2008
by Arik Hesseldahl
Technology Writer, BusinessWeek

Arik Hesseldahl

Strange as it may sound, Apple (AAPL) may have an iPod problem. The iconic music player cemented the company’s reputation for innovation and fueled its financial success in recent years. But those days appear to be over. Legions of iPod owners see little reason to upgrade, especially with the rocky economy. As a result, some analysts believe this will be the first quarter since the iPod was introduced in 2001 that sales will decline from the year-earlier quarter. “The reality is there’s a limited group of people who want an iPod or any other portable media player,” says analyst Gene Munster of Piper Jaffray. “So the question becomes, what does Apple do about it?”

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