The available Apple iPhone for $ 199 (two-year contract with AT&T) is the same as iPod nano with the same amount of memory (in USA). It is true that iPhone sales could seriously damage the iPod.
Arithmetic is not favorable for players - iPod touch with 8 GB memory it is sold with $ 100 more than the iPhone; iPod touch with 16 GB memory, it’s also more expensive with $ 100 than the similar iPhone 3G model.
Given that iPod sales are making 40% of the total Apple’s income, and the U.S. - the largest market of the Cupertino company - is experiencing a slowdown in consumer activity (also due to the fuel prices growth and the economic recession), the Apple products users’ behavior will be closely monitored.
While the investors are waiting: yesterday, the Apple shares finished the day with a 2.13% decline and the NASDAQ stock index fell by 0.61%. This means that the market is not confident in the Apple profits growth.
