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Analyst: 'At Risk' 60GB iPod Could Mean New Video iPod

Tuesday, March 21st, 2006 at 12:30 PM - by

American Technology Research analyst Shaw Wu on Tuesday issued a research report in which he noted: "Apple has notified its distributors that its high-end 60GB vPod is 'at risk' until the end of April, meaning it could be discontinued and/or replaced. Timing is not certain to us, but we believe a new widescreen vPod with Bluetooth headphones could be ready as early as the June quarter."

While the 30GB iPod, which has not been assigned "at risk" status, "continues to sell well, down modestly from high December quarter levels," Mr. Wu said that the iPod nano "appears to be experiencing the greatest seasonal decline within the iPod family, with the exception being decent sales of its new US$149 1GB model.

"We believe Apple may need to increase storage capacities and/or cut prices to regenerate interest. Declining prices in NAND flash and additional capacity coming on board should help Apple facilitate these moves."

Mr. Wu also offered comments about Apple's computer business. Those thoughts have been combined with feedback from Piper Jaffray analyst Gene Munster in a separate article.

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