Survey: iTunes music sales tumble in early 2006

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Others disagree

While Apple was expected to strongly deny this is the case, there are other analysts that disagree with the Forrester research:

http://www.blackfriarsinc.com/blog/2006/12/do-math-itunes-sales-arent-collapsing.html

In addition to the Black Friars analysis, Piper Jaffray analyst Gene Munster is also disputing the numbers from Forrester's Josh Bernoff's writing.

It has been said elsewhere that Mr. Bernoff has beef with DRM in general, as well as iTMS in particular. He may have (purposely, or subconsciously) skewed his analysis to show that iTMS is dying.

All in all, Apple's music selling business is still making (very slim) profit and sales numbers continue to grow. Since Apple keeps selling iPods in record numbers, this makes complete sense. The only reason for possible slight decline of the growth curve for iTMS compared to the one for iPods would be the replacement sales (older iPods being replaced by newer ones, i.e. same iTMS customers, new iPods).

Posted by: Predrag Vasic   Posted on: 12/13/06 You are currently: a Guest | Members login | Terms of Use

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