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Apple Recycles Old iPods; Softer Device Demand Ahead

Apple recently announced a new iPod recycling program, offering free,
environmentally-friendly disposal of unwanted devices. Customers who bring
their old iPods into an Apple store will also receive a 10 percent discount
off of any future iPod purchase. The move helps to answer complaints from
environmental groups, with iPods carrying significant levels of toxic
substances. That is part of a growing problem, with Gartner Research
estimating that 400 million devices will be junked by 2010. The research
group also pointed to the disposal of 133,000 personal computers daily in
the US alone.

In other iPod news, more concern has arisen over potentially soft consumer
demand this quarter. Apple has already attempted to manage expectations on
the matter, with June traditionally a soft month for devices like portable
mp3 players. And despite a recent record quarter involving over 5 million
iPod sales, Wall Street has been driving down Apple's stock on future
concerns. While Apple hasn’t released any figures for April or May, Goldman
Sachs recently projected flat iPod sales for the current quarter,
recommending that Apple focus on increasing Macintosh sales. But the
investment heavyweight also recognized a seasonal effect, projecting sales
of 8.5 million iPods for the upcoming holiday quarter, nearly double sales
of 4.6 million units for the same period in 2004.