Gadget Sales Fall For Apple In January
Expected or surprised?
According to The Wall Street Journal, sales for Apple in the month of January 2009 fell by 6% when compared to figures from the same month in 2009. Apparently, Apple’s pricey computer models are turning away many consumers, especially in this time of the recession.
Apple Inc.’s unit sales of computers through U.S. retail channels fell 6% in January from the same month in 2008, the first monthly decline in three years, according to market-research firm NPD Group.
The data suggest that Apple’s premium pricing, which helped boost revenue when demand was strong, may be hurting the company now that consumers are being more careful about their spending amid the recession.
Demand for Apple’s laptop computers, in particular, had remained relatively solid for months despite the economic downturn as consumers were willing to pay higher prices for a sleek design and unique operating system. But NPD analyst Stephen Baker said consumers are becoming more price-sensitive as the economic climate continues to worsen.
“Casual buyers or people who are trying to make a choice are trading down,” Mr. Baker said.
NPD compiles estimates of sales through U.S. retailers, including Apple’s company-owned stores and Web site. The firm estimates that the dollar value of Apple’s sales through U.S. retail channels fell 11% during the month, faster than the decline in unit sales. Its market share, measured in dollars, declined to 13.7% from 16.4% in January 2008, NPD said.
This news should fuel the rumors of Apple’s plan to lower prices and release cheaper gadgets by summer of 2009.
