There was a time when Apple iPods were considered revolutionary, but now Apple's famed iPod music players have been on a declining spree citing poor sales and shift in consumers' interest. Therefore, Apple could possibly kill the iPod lineup by replacing them with its upcoming iWatch.
Yes, according to Christopher Caso, an analyst with Susquehanna Financial Group, iWatch will "essentially replace the iPod in the consumer portion of AAPL's product lineup" and will see lowered iPod sales as a result of customers choosing the iWatch instead. The note says the iPod is not expected to be updated this year, first reported by Barrons.
In an interview given to Barron's Tech Trader Daily, Caso said, "While we don't expect (Apple) to discontinue iPod for some time, we also don't expect an iPod refresh this year."
Analysts have already started discussing about the demise of Apple iPod. The first-generation iPod, a portable music player, went on sale in October 2001. Since 2009, iPod sales have declined time and again. In Q2 2014, Apple managed to shit just over 2.75 million units, which itself indicates decline in popularity of yesteryear music player.
At the same time,analyst Brian White of Cantor Fitzgerald added, "We aren't assuming a material impact to earnings from iWatch, since the iWatch would essentially replace the iPod in the consumer portion of Apple's product lineup," said White.
"While we don't expect Apple to discontinue iPod for some time, we also don't expect an iPod refresh this year, and believe iPod could post year on year unit declines as a result as consumers purchasing iWatch as a substitute," Brain White added.
Apple has admitted to the fact that the iPod sales are dropping. Earlier this year, Tim Cook, CEO Apple, had been quoted saying that "All of us have known for some time that iPod is a declining business."
Meanwhile, Caso says that Apple could start producing the iWatch in the fourth quarter of 2014. He further believes that Apple is expected to introduce its intelligent watch in two different screen sizes-1.3-inch or 1.5-inch display. It is widely speculated that LG will supply OLED panel to be used in the Apple iWatch.
Rumors about the Apple iWatch have been strong since the iPod Nano 6G hit the markets in 2011. Rumors further picked up again the next year when the Pebble smartwatch went on sale with some groundbreaking features. Thus today GizBot has come up with a roundup of top 5 strong rumors surrounding over the coming of the Apple iWatch in Q4 2014. Let's dig in further.
In 2009, Apple filed a patent for charging devices by using body movements. It is widely believed that Apple is trying to make a new kind of battery technology for the iWatch. The idea is simple: the iWatch charges whenever you move your arms.
It has been reported several times that the iWatch will be used to track fitness. The device is expected to have inclusion of biometric sensors to track your health, and monitor sleep, UV light exposure and even your heart rate. The company is reportedly working on a Healthbook companion app for iOS 8. Rumors have it that the iWatch will be compatible with the iPhone and the iPad. The intelligent watch will act as a companion device, according to a report.
It is unclear whether Apple's iWatch would be a simple straight forward fitness band or a device similar to the Samsung Gear 2. There is a possibility to see a hybrid kind of device, just like the Samsung Gear Fit.
Recently, Economic Daily News (EDN) reports that the iWatch will be manufactured by Quana Computer, along with Taiwanese-based Chip Company Richtek is also said to be contribute in producing the watch.
Apple is expected to sell 65 million units of iWatch in 2014 alone. A Q3 2014 release date for the iWatch would be more accurate.
According to Cowen & Company analyst Timothy Arcuri, the Apple iWatch could be priced at $250 (about Rs. 15,250).
Even though Apple is yet to confirm the existence of the iWatch but it has already started trademarking ‘iWatch' brand name in Japan, Mexico, Russia and number of other countries.
Further, the supposed Apple-made iWatch is being headed by Jony Ive. Bloomberg reports that around 100 engineers are working under John Ive to create the most advance smartwatch the man has ever seen.
In May 2013, Apple CEO Tim Cook said there were "profound" opportunities in wearable tech.