Debate over iTunes sales direction: what’s going on?
Thursday, December 14th, 2006A couple of days ago, Infinite Loop reported on a research note from Forrester Research which said that Apple’s music sales were slowing and that sales of the company’s venerable iPod were failing to drive downloads from the iTunes Store. Two days after Forrester’s report, investment firm Piper Jaffray has released its own report saying that no, the iTunes Store is doing just fine in terms of growth.
Analyst Gene Munster of Piper Jaffray says that through September, iTunes Store weekly sales are up 78 percent from 2005. Munster’s report is based on Apple company data, according to Reuters, and shows that Apple sold 695 million tracks through September, a total of 18.5 million per week.
In contrast, Forrester’s figures come from a analysis of credit and debit card purchases from the iTunes Store, made over a 26-month period ending in June 2006. From April 2004 through January 2006, Apple saw a seven-fold increase in transactions, according to Forrester, with the average transaction size growing to $6.69 from $3.55. Since the beginning of the year, the number of transactions has fallen by 58 percent, with the average transaction size dropping to $5.56. Only 3 percent of US Internet-using households made purchases at the iTunes Store during that period.


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