Apple, Inc. (AAPL) recently announced a major change; it is closing the production of iPods, the portable music player that was launched about 20 years ago. Consumers will be able to buy only the remaining stock of the product available online or in stores.
iPods have remained a major Apple product for quite some time as they allowed people to hear music on the go. Also, it helped the company attract several customers.
However, with the technological development over the years, the need for iPods has been lost. Consumers can now hear music on each of the everyday use products, i.e., from the iPhone and Apple Watch to the iPad and Mac.
Apple’s senior vice president of Worldwide Marketing, Greg Joswiak, said, “Music has always been part of our core at Apple, and bringing it to hundreds of millions of users in the way iPod did impacted more than just the music industry — it also redefined how music is discovered, listened to, and shared.”
Wall Street’s Take
Recently, HSBC analyst Nicolas Cote Colisson maintained a Hold rating on Apple, with a price target of $160 (4.4% upside potential from current levels).
Overall, the rest of the Street has a bullish outlook on the stock, with a Strong Buy consensus rating based on 21 Buys and six Holds. The average Apple price target of $189.75 implies upside potential of about 23.8% from current levels.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into AAPL’s performance.
According to the tool, in April, apple.com recorded an 11.1% monthly decrease in global visits compared to the previous year. However, year-to-date website traffic growth has improved 442.5% against the same period last year.
The discontinuation of iPods is unlikely to impact the company’s financials. Notably, Apple had stopped reporting its sales separately for the past some years. Also, the stronghold of Apple in the portable devices market remains a key positive factor for the company.
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