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Q: iPod adoption - for ragingacademic. ( Answered 5 out of 5 stars,   0 Comments )
Subject: iPod adoption - for ragingacademic.
Category: Business and Money > Advertising and Marketing
Asked by: wjaz-ga
List Price: $50.00
Posted: 27 Jan 2004 15:38 PST
Expires: 26 Feb 2004 15:38 PST
Question ID: 300916
I need to know the adoption rate for Apple ipods from launch to date
by quarter.  Also where there any proforma predictions made along the
way (by Jobs) and have they been met.

Request for Question Clarification by ragingacademic-ga on 27 Jan 2004 15:44 PST
wjaz - great, I'm on it - thanks much for the five star rating on the
previous question!!!

Subject: Re: iPod adoption - for ragingacademic.
Answered By: ragingacademic-ga on 27 Jan 2004 17:34 PST
Rated:5 out of 5 stars
Dear wjaz,

Thanks for your question.  First, let me request that if any of the
following is unclear or if you require any further research ? please
don?t hesitate to ask me for a clarification.

You requested the adoption rate for Apple ipods from launch to date by
quarter.  Also where there any proforma predictions made along the way
(by Jobs) and have they been met.

I?ve got to tell you, this was more challenging then finding the Tivo
data.  Ok, here we go?

iPod was announced to the public in October 2001, but Apple did not
begin recording sales of iPod until late in the first half of 2002. 
The PC version was released in 2003 (likely responsible for the
breakaway 2003 Xmas season sales).

Approximate total number of iPods sold through 12/31/03 ? two million units 

Jobs claims iPod and iTunes are expected to account for 50% of Apple
revenues in the future ? so, this is a total change of strategy for
the company.  Currently account for 9% (inclusive of Q1 04).

Quarterly unit sales data

Q1 2004, quarter just ended 12/31/03 ? 730,000 units sold

Q4 2003 ? 336,000 ($121m)

Q3 2003 ? 304,000 ($111m)

Q2 2003 ? 78,000 (sold out?hence the drop?)

Q1 2003 ? 219,000

Q4 2002 ? 140,000

Note ? Q4 2002 was the first time Apple broke out iPod sales; however,
total 2002 unit sales are reported in the company?s 10-k ? we
therefore know that in total 381,000 units were sold in 2002; 140,000
in the fourth quarter and therefore 241,000 were sold in Q2 and Q3
(since Apple states that sales only began late in the first half of
2002, I am assuming no sales were made in Q1 2002).  I do not have a
split for Q2/Q3.  2002 iPod revenues were $143m.

Some iTunes Data

+ iTunes launched in April 2002

+ iTunes now accounts for 70% of legally downloaded music

+ Through 12/31 a total of 30 million songs had been downloaded for fee

Specific Steve Jobs Predictions

I have not found any specific numerical predictions?you can run
searches such as ?steve jobs predicts? and ?steve jobs believes?
(exactly as is, with the quotes ? allows you to search on phrases in
Google) and you?ll get some non-quantitative quotes, but very few that
are iPod related.

For example, ?Apple chief executive Steve Jobs believes the
Hewlett-Packard deal will lift sales of iPods.?

I hope this response adequately addresses your request.  Please let me
know if you are in need of additional information concerning this



IPod Sales Boost Apple Profits,39024645,39117801,00.htm

Detailed Notes from Q4 Conference Call

iPod Sales Pass Two Million

Two iPod Sales a Minute

Apple Corporate Briefing

Apple's Q4: iPods, Retail Stores Doing Well, Thank You

National Bank Financial ?Top News?

Apple Computer Fiscal 2003 10-K

Apple Computer Fiscal 2002 10-K

Clarification of Answer by ragingacademic-ga on 27 Jan 2004 18:17 PST
wjaz - thanks, a pleasure to work with you and thank you very much for
the five star rating!!

If you are in need of additional research, please consider asking for
my services by adding "for ragingacademic" to your subject line.  It
would also be good to let me know that a new question has been posted
by requesting a clarification here (when you request a clarification I
receive an email).

thanks again!
wjaz-ga rated this answer:5 out of 5 stars

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