Thursday, May 17, 2007

Ipod Domination

iPod Is Dominating the Market, and There Is More to Come

iPod contributes 12-14% of total company revenues, a number industry experts believe will continue to increase. With this increase comes pressure on gross margins, as the blended iPod gross margin of 20% compares unfavorably with Apple's corporate average of 27-28%. The iPod helped augment Apple's growth by expanding its addressable market from the core computer market, which continues to grow, but at slower rates. To increase penetration of the rapidly growing MP3 player market, Apple launched the iPod Mini internationally in July 2004, and HP's iPod launch is scheduled for later in summer.

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