iPod OEM expects reduced iPod revenue
August 27th 2008
Whether it comes fewer units or lower per-unit margins, Apple's primary iPod OEM expects the money it gets from the Cupertino company's products will fall proportionately.
DigiTimes reports that Inventec expects the ratio of revenue it derives from Apple and its iconic iPod to decline from 48% to 40 ~ 42 percent. Also, the company says that net profits in the year-to-date fell 10.2%.
Kevin Rose of digg.com and unannounced Apple product prognostication fame says that he has heard that iPod prices will be cut to shoehorn the product line in below the iPhone's $199 starting price.
Further, Apple CFO Peter Oppenheimer has said Apple will take a significant margin hit in the wake of a September product transition. Though Apple's mum on what products will be affected, it's widely expected that the company will release redesigned notebooks and iPods, perhaps as early as Sept 9.
Editor's note: Nothing's certain until Apple issues the press release(s), but a clearer picture is definitely emerging. I'm personally hoping price cuts extend to the MacBook, MacBook Pro and iMac product lines with a major new sub-$1,000 desktop announcement in the mix, as well...
What's your take?
