They don't have a robust computing experience.
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"They have software technology that is old. "I think some of the netbooks that are being delivered or many of those are.very slow," he said. This week, for example, Apple's Cook continued that attack. Since then, Apple executives have repeatedly ridiculed netbooks as underpowered, cramped and out-of-date. Last October, CEO Steve Jobs dubbed the iPhone and iPod Touch as Apple's entries in the netbook market.
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"The great thing about the iPod Touch is that you can be interacting with friends on social networking sites, and you don't have to pay for a data plan," said Gottheil, adding that the Wi-Fi connectivity of the Touch is particularly handy for younger users in school, since "they're almost continually in a Wi-Fi environment."Īpple has pushed the iPod Touch this summer, as it did last year, as the free giveaway to students and parents of students who purchase a Mac as part of its annual back-to-school promotion. the iPod Touch user base of 1.55 million almost matched the 1.68 million iPhones. In Canada, for example, it pegged the Touch installed base at 1.36 million, compared to the 805,000 iPhones, while in the U.K. "It brings in more developers, with a broader range of applications than if it only the iPhone."ĪdMob's estimates also highlighted the success of the iPod Touch in other markets. "The iPod Touch adds another thing to Apple, it adds fuel to the App Store," said Gottheil. "We expect our traditional MP3 players to decline over time as we cannibalize ourselves with the iPod Touch and the iPhone," the executive admitted Tuesday. That's exactly what Oppenheimer dropped into the Apple vocabulary. "I don't ever remember them using the word 'cannibalize'," said Gottheil. Gottheil also noted that for the first time Apple acknowledged the iPod Touch has been eating into sales of the traditional MP3 player-style iPods. This is one of the original reasons we developed the iPhone and the iPod Touch." For traditional MP3 players, which includes Shuffle, Nano, and Classic, we saw a year-over-year decline which we internally had forecasted to occur. "Traditional MP3 players, iPod Touch, and iPhone. "We have three categories of what we call 'pocket products,'" said Oppenheimer Tuesday. "For the first time, they're beginning to talk about it as a different type of cat from the iPod media players," he said, referring to comments by Oppenheimer. Gottheil pointed to hints dropped by Apple executives about the iPod Touch's importance. "Without it, iPod sales would have been really dismal." As it was, even with the Touch included, iPod sales overall were down 7% year-to-year. "The iPod Touch is clearly important to Apple," said Gottheil. Sales of the iPod Touch soared last quarter, said Peter Oppenheimer, Apple's chief financial officer, in the Tuesday earnings call, and were up 130% compared to the same period last year.
Its conclusion: There are approximately 13.25 million iPhones in the U.S., versus 11.5 million iPod Touches, making the ratio 54%/46%, again in favor of the smartphone. Gottheil said that estimate's breakdown between the two - 59%/41%, with iPhone dominating - was in line with previous assessments of the devices.ĪdMob used the iPhone/iPod Touch installed base in combination with June data from its ad network to estimate the numbers of each device operating in major markets, such as the U.S., Canada, Germany, France, the U.K. With previous estimates of total iPhone sales at 26.4 million, that left the Touch holding down a base of 18.6 million. On Tuesday during Apple's quarterly earnings call with Wall Street analysts, Tim Cook, the company's chief operating officer, said that the combined global installed base of the iPhone and iPod Touch was 45 million.
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