So, according to BusinessWeek, Apple has a problem because everyone who could have an iPod already has one, and people are not thinking about replacing it due to the economic situation. Well, it may be true that if you see the iPod only as a digital music player, the features of the newest models may not justify an upgrade, but maybe it’s time to start considering the “classic” iPods as last gen technology, like the Walkman.
The iPhone is doing great, and with the introduction of the App Store, Apple has created a strong mobile platform where lots of cool software is being developed. The iPod Touch is still a niche product, for those who don’t want to change to the iPhone, don’t want to be locked into their carriers, etc, but soon enough people will start seeing the Touch as the iPod. And as soon as that happens, the iPod growth is resumed.