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Apple Going To Stop Making ipods ?

Apple Going To Stop Making ipods ?

Some tech pundit named Robert Cringely is floating the idea that sooner or later Apple is going to license the iPod to other manufacturers and get out of the business of selling iPods altogether.

Here's his line of reasoning: Right now they're using the iTunes Music Store to drive sales of iPods, but Apple continues to face downward price pressure on the iPod and eventually theyll be forced to cut margins on the iPod to the point where they'll no longer be all that profitable (at least not at the kinds of margins that Apple is used to enjoying). Cringely thinks that the long term profit margins on iTunes downloads are better and more scalable than for hardware, so he thinks that they'll start letting other companies make iPod clones that are compatible with the iTunes Music Store and then stop making their own iPods to focus entirely on selling downloads.

It may sound crazy, but Steve Jobs is known for pulling unpredictable stunts.

If the iPod stops being a moneymaker, Jobs won't hold on to it out of some sentimental attachment.

Cringley's article is here: http://www.pbs.org/cringely/pulpit/pulpit20050505.html
(It's in the last two paragraphs of the article.)

Well, what does everyone think about this ?
[1350 byte] By [iMacc] at [2007-11-10 14:07:19]
# 1 Re: Apple Going To Stop Making ipods ?
They may ones day, but currently they own the market and as long as they stay one step ahead of competitors they should be keep making a healthy profit.
stickuto at 2007-11-15 18:01:39 >
# 2 Re: Apple Going To Stop Making ipods ?
I can't imagine this happening. I don't think that the iPod will become unpopular, as sales have been going up at each new release. When the 5G comes out iPods will be selling like hotcakes. I just think that the iPod is one of Apple's biggest moneymakers, and I don't see them throwing it away.
cheezhead999 at 2007-11-15 18:02:39 >
# 3 Re: Apple Going To Stop Making ipods ?
Originally posted by cheezhead999
I can't imagine this happening. I don't think that the iPod will become unpopular, as sales have been going up at each new release. When the 5G comes out iPods will be selling like hotcakes. I just think that the iPod is one of Apple's biggest moneymakers, and I don't see them throwing it away.

Maybe not yet, but there will be a time when consumer tastes change. iPod can't remain the top product forever, see it as more of a 21st century walkman.
neb at 2007-11-15 18:03:37 >
# 4 Re: Apple Going To Stop Making ipods ?
i agree with what everyone is saying. if the iPod becomes unpopular and the profit margin becomes too small, then obviously Apple would stop making it (or unload it onto some other company). but at the same time, the iPod is pretty popular right now, so i don't think it will happen anytime soon.
djte at 2007-11-15 18:04:42 >
# 5 Re: Apple Going To Stop Making ipods ?
Originally posted by iMacc

It may sound crazy, but Steve Jobs is known for pulling unpredictable stunts.



I've never been an apple user, so could you please fill me in on this.

~Rooostishaw~
rooostishaw at 2007-11-15 18:05:41 >
# 6 Re: Apple Going To Stop Making ipods ?
I dont see this happening
Daniel CR at 2007-11-15 18:06:40 >
# 7 Re: Apple Going To Stop Making ipods ?
Originally posted by rooostishaw
I've never been an apple user, so could you please fill me in on this.

~Rooostishaw~

In the early 1980s, he was taunting the Macintosh crew at Apple. A couple of years later, he took over the division (sudden change of mind) and decided that with Macintosh, he was going to "put a dent in the universe".

There are also other issues. If you're interested, The Second Coming Of Steve Jobs is a very interesting read.

Anyways, back OT. I can see this happening, but not just yet. There will always be a market for something exclusive.
Kristiano at 2007-11-15 18:07:44 >
# 8 Re: Apple Going To Stop Making ipods ?
i dont think the ipod drop will be w/in the next 3 years...
smorzander at 2007-11-15 18:08:47 >
# 9 Re: Apple Going To Stop Making ipods ?
I think, at this very time, it is a very un-wise decision.

Give the market a couple years to catch up with the whole mass-media music players idea, and it will be an extrememly smart idea.
Adam at 2007-11-15 18:09:44 >
# 10 Re: Apple Going To Stop Making ipods ?
As long as they keep selling well, apple would be foolish to stop making them
thesire at 2007-11-15 18:10:44 >
# 11 Re: Apple Going To Stop Making ipods ?
umm what about the first 3 ipods? none of them were nearly as popular as the 4th gen, and they were in business, hopefully all the stupid people who bought them cause everyone else did will die and then the people who actually use them will be the new market place.
iZach at 2007-11-15 18:11:43 >
# 12 Re: Apple Going To Stop Making ipods ?
iPods are the main thing keeping Apple going. I mean, yes Macs are popular to an extent but iPods are more popular. If they said iPods only work with Macs, maybe more people would buy Macs? I don't know. Anyway, maybe if in the future, Macs become extrememly popular, they will drop the iPods and give the license to someone else, but when I say future, I mean like in a LONG time. I'm not saying Macs aren't popular though. I love them. I'm completely Mac Addicted. Can't wait for the switch... :p
LazyiPoder at 2007-11-15 18:12:52 >
# 13 Re: Apple Going To Stop Making ipods ?
it might happen one day, but not for a long time. maybe as Macs become increasingly popular and they can hold up their business strictly off of computers. but right now, they need iPods. iPods are encouraging people to buy Macs, however. Take me for example...I'll be buying either a Powerbook or iBook soon all because I love my iPod so much. I think Apple makes great and simple to use products. It's just hard to pick one. :p
iBimbo at 2007-11-15 18:13:47 >
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