Analysts warn of falling sales of iconic product as consumers tighten their belts

iPod no longer revenue stream for Apple

Analysts have warned that Apple may be at more risk than other vendors to falling consumer confidence, as consumers seek to cut back on luxuries such as the company’s iPod range.

The report from BMO Capital Markets analyst Keith Bachman highlighted saw him suggest Apple’s three revenue streams have shrunk to just one. "Apple’s three growth drivers – iPods, iPhones and Macs – have now turned to one, [the Mac]," said Bachman.

He also raised his sales estimates for the Mac, from 8.2 million units to 9.4 million units for Apple’s current fiscal year, which ends in September. He added that he expects total Mac sales to rise to 2.06 million units, up from 1.87 million, during the current quarter.

The iPhone is also expected to fail to meet its current sales target for the year, according to Bachman, with him saying he expects the device to only manage to sell 8.5 million units before the end of the year compared to Apple’s ten million target.

Piper Jaffray analyst, Gene Munster agreed with Bachman’s analysis that the iPod was unlikely to reach Apple’s own targets for the quarter, citing research data from NPD that shows it is only likely to reach between 9.5 and 10.3 million sales compared to expected estimated sales of 10.8 million.


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