By Dave Lee Technology reporter, BBC News
Analysts do not expect there to be significant
improvements made to the iPod range
Few pieces of technology can
genuinely claim to be iconic. But Apple's iPod, first launched in 2001, arguably
fits the bill.
With its distinctive click-wheel design, and those ubiquitous white bud
headphones, the iPod brought good looks to portable audio technology - with a
"cool" factor not seen since Sony's Walkman over a decade earlier.
And for the record industry, a sigh of relief - the iPod's accompanying music
store iTunes paved the way for legal digital music downloading to hit the
mainstream, tempting at least some music fans away from the free-for-all of
piracy.
But 12 years, and 26 devices later, the generation-defining iPod range looks
like it's about to fade into history without so much as a whimper.
Continue reading the main story
“Start Quote
[Apple] thought: 'If we don't do something, someone else
will'”
End Quote Ian Fogg Mobile
analyst, IHS
"I think all of us have known for some time that iPod is
a declining business," said Apple boss Tim Cook earlier this week, speaking
during a conference call discussing the company's latest earnings report.
He announced massive profits - as ever - but noted that iPod sales had
dipped: 52% down on this time last year, with further drops expected.
That's not bad, or even surprising, news for the company. The people who
would have previously bought iPods are now more likely to buy iPhones or
iPads.
But it's bad news for the humble iPod - a tiny-but-mighty device that many
say was the catalyst that propelled Apple into its boom era of iPhones and
iPads.
Cannibalising sales
The iPod has been nervously looking over its shoulder for some time.
When the iPhone was launched in 2007, Steve Jobs joked that it was "the best
iPod we've ever made".
And he was right - with its apps and other smartness, the iPhone meant there
was no longer any need to own an iPod as a separate device, so long as you could
afford it.
Continue reading the main story
The first iPod, launched in 2001
By 2004, it had shrunk a little for the iPod Mini
range
2005 saw the main product gain added video
capabilities
An approach not everyone thought would work - 2005's
screenless iPod Shuffle
Within a year, the Shuffle had become even
smaller
The first iPod Nano was out in 2005. This red limited
charity edition is from 2006
The iPhone-like iPod Touch was released in
2007
The last major upgrade of the iPod Touch range was in
2012
Continue reading the
main story
"One of the things that's very striking is that Apple
was doing very, very well with the iPod back in 2006, yet it still chose to
create a smartphone which on day one had iPod capability," says Ian Fogg, a
mobile analyst from IHS.
"It wasn't afraid to create a product that would disrupt a successful
existing business. It thought: 'If we don't do something, someone else
will'."
Younger users
As it happened, the iPod held its position as the biggest selling dedicated
MP3 player on the market. It still is.
Despite the iPhone - and other smartphones - offering far more in terms of
features and computing power, the iPod was holding its own.
In fact, according to IHS, sales of the iPod reached peak levels
after the iPhone launch, with more than 22 million of the devices
shifted in the fourth quarter of 2008.
The iPod has even inspired ambitious fancy
dress
And even today, despite that dramatic 52% fall, the iPod range still
generates big revenues - $973m (£587m) in the last quarter.
Analysts say it has remained popular for a multitude of reasons that go
beyond simply price. The iPod Touch, for instance, is seen as the
iPhone-that's-not-a-phone, so to speak - offering everything an iPhone does but
without cellular capability.
"The iPod touch today is a great way of appealing to younger consumers that
are maybe too young to have an iPhone," suggests Mr Fogg.
"It's getting them on board with Apple, getting them downloading apps from
the App Store."
New products needed
But $973m out of Apple's total revenues this quarter - $57.6bn (£34.7bn) - is
just a minor sideline or, as
technology
news site The Verge put it, "a hobby".
Which leads most people in-the-know to predict that while Apple may not
discontinue the iPod in the very near future, we're unlikely to see any kind of
significant update of the devices.
"As long as the iPod can stay a quality product and not have them lose money,
I really don't see any reason for them to kill it," argues Alex Heath, a writer
for CultofMac.com.
But Mr Heath and others stress that since the iPod can no longer be seen as a
major Apple product line, Tim Cook needs to introduce an entirely new product if
he is to keep investors - and fans - on his side.
Apple has patented what looks like smart watch
technology
"They're going to need to branch into new categories," says Eric Slivka,
editor in chief of MacRumors.com.
"An Apple TV has been on the radar for a long time, and now it seems rumours
like the iWatch and other wearables are starting to take over."
Mr Heath adds: "It's looking like, unless there some production issues, Apple
is on track to release some kind of wearable, by late 2014.
"It will either send Apple's stock soaring, or crash it. 2014 is going to be
a very interesting year."
Follow Dave Lee on Twitter @DaveLeeBBC
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