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iPod Mania
14jan06
AUSTRALIAN music-lovers from school age to grandparents are joining the iPod revolution, which has Apple singing all the way to the bank.
At its Macworld expo in the United States this week, the computer giant announced sales of the music machines surpassed forecasts, with more than 14 million sold in the December quarter, generating $US5.7 billion ($A7.6 billion) in sales.
While the iPods range in price from $149 to more than $500, the money is in the accessories, which can cost more than the iPod itself.
Analyst Richard Doherty of the Envisioneering Group estimated sales of more than $US1 billion in add-ons, from cases to car accessories to speakers, in the same period.
Apple receives a licensing fee and royalties from companies whose products access the iPod port.
The company also sells its own range of accessories, which includes novelty cases and the crystal coated iBling, but designers normally seen on Parisian catwalks like Louis Vuitton, Dior and Gucci also have gotten in the act.
“It’s the iPod economy. And (Apple CEO) Steve Jobs is the Alan Greenspan of that iPod economy,” Mr Doherty said.
Australians are following the same trend, with Harvey Norman general manager of computers and communication Rutland Smith forecasting stronger sales for Christmas 2006.
“We’re one of the largest iPod retailers in the country. We had forecast very high numbers and we met them,” he said.
Attachments like speakers were popular because digital technology offered a better quality sound from a small portable machine, he said.
Even if the company does not receive direct payments, the more businesses that build creative accessories, the more desirable the iPods become.
At this point, there seems to be no end to the iPod-related business plans.
Chrysler just announced that it was providing iPod-friendly gear as an option in most of its 2006 models – at the Macworld expo, there are autos decked out with iPod equipment – and Levi Strauss said it would sell jeans called Levi’s RedWire DLX jeans with an iPod docking cradle built into a pocket.
Apple shares were trading at around $US84.63 on Thursday (US time).
http://www.couriermail.news.com.au/comm … 53,00.html
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