Slow iPod Sales Bite Apple In The Stocks
A nearly 5 percent slide in Apple Computer’s stock price may be the result of slowing sales of its iconic music player.
Now that Apple was finally able to announce a settlement of the iPod lawsuit, the company gets more bad iPod news.
The drop in share price to $38.24 at Friday’s close was 4.5 percent lower than the open of $40.04. A report by the investment firm Goldman Sachs predicts flat shipments of iPods for this financial quarter.
And rumors at AppleInsider claim the Cupertino-based computer maker has a glut of iPods, and particularly the new iPod Shuffle. Citing unidentified sources, that report said iPod sales were flat or declining for the first time ever.
An Apple spokesman said the company does not comment on rumors or speculation. But Apple has seen more competition from other media players, which have included not just music players but PDAs that store photos and perform tasks along with playing music.
And a dispute with environmentalists critical of Apple may find some resolution. The company announced an iPod recycling program, where users who turn in old iPods for environmentally friendly recycling will receive 10 percent off the purchase of a new one.
David Utter is a staff writer for WebProNews covering technology and business. Email him here.