December 4, 2008

What About the iPod?

Gene Munster seems to think that the iPod is dying.  This may sound like a bad Slashdot troll, but he appears to be completely serious.

So pay attention when Munster says the iPod faces a bleak future. Rising unemployment and credit problems will just make it tougher for shoppers to justify spending money on little luxuries next year. Munster predicts Apple will sell 20% fewer iPods next year, after clocking unit sales growth of 6% this year. “We are modeling for the sky to fall on iPod demand,” Munster wrote.

For someone who has followed Apple for so long, this seems like an odd departure from logic.  As the economy struggles to find its feet, Apple will do what Apple does best: innovate.  If demand for the current incarnation of iPods begins to wane, his Steveness will unleash the next wave of iPods that has undoubtably been waiting in the wings.  Want a hint of what’s in store for the iPod’s future?  Look no further than the touch, and the success of the iPhone.