Tuesday, May 30, 2006

Investment Banks See Strong Growth for iPod

MacNewsWorld reports that financial analysts are bullish on the future of the Apple (AAPL) iPod. Credit Suisse First Boston analyst Robert Semple wrote in a recent client report, "We believe Apple is still in the early stages of its product expansion and that the company can grow its iPod units at least 20 percent for the foreseeable future."

Semple added, "Europe remains the biggest opportunity for Apple, in our opinion, based on its penetration rate of only 7.1 percent and similar demographics and buying patterns to the U.S." However, "[Apple has] opened only six retail stores in the UK and nowhere else in the region, choosing instead to leverage reseller partners."

Semple expected the "iPod to continue to deliver strong growth, but its position as the leader in both flash and drive-based digital music players will eventually be limited by the growth of the music player market."