3Q review: The iPod revenues increase again

The iPod touch increased sales 48% year-over-year.  The continuing mix shift toward iPod touch resulted in an overall iPod ASP increase of 12% to $164 (up from $143) generating total iPod revenue growth of 4%.

Units declined 7.9%, inline with my expectations of -8%. I had forecast 9.40 and the actuals was 9.406 million. I note that most amateur analysts over-estimated iPods with my guess being the second lowest.  It’s important to consider just how much the iPhone (and iPad) cannibalize the non-iOS iPods.

I am estimating gross margin holding steady at 28%.

Looking forward I am forecasting ASP of 170 and unit growth of -8%.

I’ll also mention here the Music business.  Revenues grew at an accelerating 26.7%. This growth is a significant rebound from the 15% to 22% growth of 2009 though lower than the 30%+ range of 2007 and 2008.


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