IPod Shuffle - Reception and Impact

Reception and Impact

The iPod Shuffle was announced at the same time as the Mac Mini. Like the iPod Shuffle, the Mac Mini is a scaled-down product which has been introduced at a lower price. These two products together can be seen as a conscious effort on the part of Apple management to target a lower-end market and increase visibility in the mass-market. Previously, the success of Apple's iPod and especially the iPod Mini had been chipping away at the inexpensive flash player market, causing flash players at the beginning of 2005 to account for less than half the market share they did in 2004. However, the original and Mini iPods were costly and the Shuffle was intended to make the iPod compete with mainstream players.

By April 2005, the end of Apple's second fiscal quarter, the iPod Shuffle had already proven itself to be a successful product for its manufacturer. Although Apple has chosen not to specify how many iPod Shuffles were sold in the product's first three months of existence, analysts at Piper Jaffray estimated that 1.8 million of the 5.3 million iPods sold in the second quarter were Shuffles. NPD Group estimates that the iPod Shuffle captured 43% of the flash-based music player market in February 2005, after only its second month of existence. By March 2005 the iPod Shuffle's market share had risen to 58%.

In September 2006, Apple CEO Steve Jobs announced during his keynote presentation on the "It's Showtime" Special Event, that until then, Apple had sold 10 million first generation iPod Shuffles.

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