Apple Inc (AAPL)

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iPod shortage? From the take it for what it's worth dept:

Apple iPod in short supply for Christmas
By Paul Taylor in New York
Published: December 12 2003 21:50 / Last Updated: December 12 2003 21:50

Hoping to get an Apple iPod for Christmas? You could be out of luck. Apple Computer's digital music player is in short supply in many markets, including the US and UK.

Most stores in New York have sold out of the larger capacity models and do not expect to get more before the holidays.

The sleek white and silver iPods have proved phenomenally successful since their launch just over two years ago, drawing comparisons with other consumer electronics icons such as Sony's Walkman cassette player.

During the past few months, online music downloading has reached the mainstream and Apple appears to have underestimated the surge in demand for its players. In the three months to September, Apple shipped 336,000 iPod units, a 140 per cent increase on the year before.

If the shortages persist, it would prove another blow for Apple, which has a history of designing blockbuster products but being unable to meet customer demand. During the past couple of years, Apple has suffered shortages of its iMac personal computers and its hot-selling iBook portable PC.

In Apple's defence, Wall Street analysts note that it is notoriously difficult to predict demand for products that unexpectedly become "fashion items".

But iPod shortages are forcing many Christmas shoppers to hunt around or settle for one of iPod's many imitators. While most rival machines cost less, aficionados consider them to lack the vital quality of "coolness".

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