Retailers and Analysts agree: New iPod line coming within weeks
Posted August 21st, 2008 by GenghisPhlip
Apple’s resellers worldwide tell us that all signs point to the eminent doom of Apple’s current line of iPods. Of course this would not be so news worthy had Wall Street analyst Ben Reitzes not recently underlined his claim that it is likely that the line will soon be be made obsolete by the rumored unveiling of a $199 iPod touch.
In the United States, reports are coming in from those who are in the know with major reseller inventory management systems (Target, Walmart, Bestbuy) that current iPod models skews are being shifted from “Active” to “Discontinued”. Those reporting say that the items show up as discontinued when scanned with one of the store’s handheld price scanners. Unfortunately, the handheld scanners are not able to display details such as dates, replacement items, etc…
Argos, a large Apple retailer in the UK, is getting ready put it’s remaining iPod inventory on clearence because they anticipate that new models are coming in a matter of a few weeks. appleinsider reports that “a person familiar with the plans says the company recently took receipt of new point-of-sale displays promoting “price cuts” that should hit the retail floor during the last week of August or first week of September.”
They report says that the displays include a “giant wall graphic” and that it will be the “biggest poster” ever displayed by Argos.
With these signs of inventory adjustment along with advice (warnings) from in the know Wall Street analysts about what Apple needs to do to keep the momentum that they currently hold the digital market we tend to agree with the speculation that a new line of iPods will soon hit market shelves.
Lehman Brothers analyst Ben Reitzes notes that Best Buy’s sales numbers for the last month indicate that sales of the 16GB iPod touch has trailed all other members of the iPod family.
“We continue to believe Apple will need to reposition the iPod touch line in conjunction with its anticipated new product announcement in early to mid-September now that the iPhone acquisition price is lower,” said Reitzes in a note to investors.
Piper Jaffray analyst Gene Munster joined the discussion on Tuesday in a note to clients where his comments echoed those of Reitzes. He added that he expects an across the board change of the iPod line including the introduction of an iPod touch that will be offered below $200.
Munster wrote “Specifically, we believe Apple will increase the capacity of the iPod shuffles as well as the iPod nanos (but maintain current price points); redesigned form factors for the shuffles and nanos are unlikely,” and “We believe the iPod touch may be redesigned and may enter the $199 price point, in line with the iPhone.”
