iPhone and iPod Revenue

Philip Elmer-DeWitt:

Apple passed an important milestone last quarter that nobody on Wall Street seems to have noticed: the iPod, once Apple’s No. 1 source of revenue, fell into third place after the Mac (No. 1) and the iPhone (No. 2).

It’s not that no one noticed. It’s just old news. If you count the iPod Touch as an iPhone (given that it runs iPhone OS), the revenue comparison isn’t even close. And CFO Peter Oppenheimer mentioned it specifically:

“This is one of the original reasons we developed the iPhone and the iPod touch,” he said. “We expect our traditional MP3 players to decline over time as we cannibalize ourselves with the iPod touch and the iPhone. However, we have a great business that we believe will last for many years and which we will continue to manage well and offer the world’s most innovative products.”

★ Wednesday, 5 August 2009