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Apple sells 25% of music in the US, none of which is AC/DC
According to the number crunchers at NPD Group, the trend that came to a head last year when Apple beat out Wal-Mart for the title of largest Stateside music retailer is continuing apace. That's right -- one in four songs sold in America is sold on iTunes, while Wal-Mart (including CD sales through retail stores, sales through their website, and Wal-Mart Music Downloads) holds the number two position at 14 percent. And number three, if you're morbidly curious, is Best Buy. In addition, 69% of all digital music sold in the US comes from the iTunes store, with Amazon ranking second at 8 percent. When talking formats, the CD remains the most popular at 65 percent, but as some dude named Russ Crupnick (NPD's vice president of entertainment industry analysis) notes, "with digital music sales growing at 15 to 20 percent, and CDs falling by an equal proportion, digital music sales will nearly equal CD sales by the end of 2010." Which can only be a good thing, if it means that we'll never have to step into a Wal-Mart again. Sales of ringtones and sales to consumers under 13 were not tabulated, which means the data may incorrectly skew away from purchases of The Wiggles' Go Bananas! and that Crazy Frog song. [Via TUAW]
Stephen Baker: Drop the MacBook below $800
Stephen Baker, Vice President of Industry Analysis for The NPD Group, released his analysis of Apple's sales trends following the recent release of January sales figures. In his opinion? If Apple keeps up its current pricing strategy, it's going to flounder in today's economy. The solution? If Apple can't produce a netbook, then slash the price of the MacBook down to $799 in order to bring a mainstream price to a high-end product. How low can you go? Discussion on this article behind the scenes here at TUAW resulted in the observation that if you drop the price too much, you'll wind up diluting the brand itself. Apple commands higher prices, but it also has the product to back it up -- and it has made some price concessions. You can pay $999 now for a better MacBook than I paid $1399 for just 15 months ago, and one that will last much longer than most PC notebooks on the market. Drop the price too much and not only will the brand get diluted, it'll spark even more fears that something is wrong with the company. There's a fine line between premium and cheap, and a lot of that is psychological. Personally, I would also think less of Apple if it jumped on the netbook bandwagon just because everyone else did. It didn't even venture into the smartphone market until it could develop a device that not only blew away the competition, but changed the cell phone industry itself. If Apple is going to produce a netbook, then let it produce one that'll stand out and won't get lost among the Acers, Dells and eeePCs out there. But, don't slash MacBook prices to compensate for the lack of one either. What are your thoughts on Baker's observations? Let us know in the comments.
NPD Group says discs don't have to fear downloads... yet
Pretty much falling in line with Futuresource's predictions earlier this week, the NPD Group found that the 48-percent of respondents had purchased a DVD or Blu-ray disc, compared to 2-percent who had downloaded a movie or TV show. Download-only zealots who cry foul over the lack of titles available for purchase will find little consolation in the additional 2-percent who digitally rented content. Still, physical media could take a lesson from the new kid on the block, and we'd agree that getting rid of the numerous previews on discs to mimic the "just watch the content, already" performance of streams would be a good start. Prioritize that above including more BD-Live "features," please; based on what we've seen so far, we don't think that's going to be what really pushes people from DVD to Blu-ray, no matter what the poll numbers say.
Nintendo sets US sales records in 2008, collects $200
While 2008 saw investments wiped out, institutions falter, and record job losses, the house that Mario built chugged its way back into the record books. According to NPD Group statistics, Nintendo sold a record 10.17 million Wii consoles to US Americans in 2008. That trumps Nintendo's own record of 9.95 million consoles sold in the relatively healthy 2007 economic climate. Nintendo added to its money pile by hawking 9.95 million DS handhelds for the year compared to the 8.52 million sold in 2007. Those tallies represent 55% of all consoles and 72% of all handheld consoles sold in the US. Daaaamn.P.S. Want to see what Nintendo's 2008 dominance looks like in the form of a pie chart? Check the amazing graphic after the break.[Via GamesIndustry.biz]
On average consumers pay $10 more for Blu-ray Discs than DVD
In a recent report by the NPD group, it is revealed that on average consumers pay $10 more for a Blu-ray Disc then for a DVD. The real interesting part is that evidently that is still to much for some titles. The report goes on to say that while consumers have no problem paying $10 more for titles like The Dark Knight, other movies just aren't worth it. Of course this points to the obvious fact that if Blu-ray Discs cost less more people would 'em. We can't blame Hollywood for trying to get the best price they can for their wares, but at the same time we can understanding waiting for the prices to come down before buying. The other interesting part of the report is how many more men are into Blu-ray then women. We won't even begin to try to understand this one though.
Mac mini update rumors flare as Apple sales dip
Although Apple just posted some ridiculous quarterly numbers, it doesn't seem like it's going to escape the current economic conditions in the US unscathed -- like pretty much everyone else, monthly sales are down in Cupertino, according to the NPD Group. The drop is only one percent total, but it's against a two percent rise in overall PC sales, which could indicate that Apple's premium pricing is hurting it as shoppers turn to netbooks and other bargain machines. That dovetails nicely with chatter we're hearing today about updated Mac minis making a debut at Macworld -- although Steve famously proclaimed that Apple doesn't "know how to make a $500 machine that's not a piece of junk" during the last earnings call, it sure sounds like he's going to try, with a $499 2.0GHz mini in a new MacBook-esque unibody enclosure rumored to arrive onstage in January. If you believe Wired, it'll be accompanied by a $700 2.3GHz version with NVIDIA graphics, and both models will feature mini DisplayPorts -- nothing shocking there. We'll see when we see -- we've been waiting for the mini to be updated forever, and while Apple did just uncharacteristically slam rumors of a new model, times like these could lead to drastic measures. Read - Mac mini rumors Read - Apple monthly sales drop
Black Friday sales decline for the first year ever
Doesn't look like Black Friday escaped the sad face known as the US economy -- the NPD Group just ran the numbers and found that overall sales during the weekend after Thanksgiving went down eight percent from 2007, which is the first decline ever. Of course, maybe we'd have all been tempted to buy more if the bargains weren't all so totally lame -- there was no way we were going out there to face the crazy murderous rush to get $5 off a 1GB flash drive or whatever. That said, sales of laptops went up 19 percent, and 30-inch and larger LCD TVs went up 18 percent, so things weren't entirely gloomy, but NPD says Black Friday might be turning into more of a showcase event rather than a blitzkrieg holiday shopping kickoff, which would be just fine with us -- don't worry, we'll still give away tons of gear. We love you, after all.
PMP docks keep things afloat as other audio gear sinks
Sure, it's impossible to find anything electric that hasn't been graced with an iPod dock anymore, but according to NPD Group, unit sales of MP3-docking speaker systems -- a catch-all that includes iPod-dockified clock radios and tabletop radios -- actually rose while other audio gear suffered. From our HT-centric viewpoint, sales of HTIB systems came up 16-percent short while AV receivers slid 8-percent. But the loss-leader by a long way was the compact stereo segment -- the 36-percent setback on sales goes to show that when people are concerned about hanging on to their jobs, outfitting the cubicle or office with new gear moves way down the priority list.[Image courtesy PodcastingNews]
RIM leads US smartphone sales, Apple ousts HTC for second
Well here's a Shift, according to an NPD Group study, RIM sits atop the sales charts in the smartphone world and HTC doesn't even make the top five. During the period from January until July of 2008, 9 million sets were sold in the US for a cool $1.7 billion. Behind the mighty BlackBerry comes Apple's --the iPhone launch is being touted as the magic that helped ease them into second place -- followed by Palm, Samsung , and Motorola. The NPD Group goes on to mention that smartphone sales are up ten percent over the same period last year to 19 percent of all phones sold and that pricing is down seven percent to an average price of $185 per handset. Follow the read link for more tasty bits of number crunchery.[Via Moconews]
Leaked NPD numbers show HD DVD hardware sales still trailing Blu-ray
While the official tally isn't out, TWICE apparently has leaked data from The NPD Group -- which wouldn't confirm the accuracy of the numbers -- indicating HD DVD continued to trail Blu-ray in hardware sales and sales dollars in the week ending January 26. These numbers show Blu-ray at 65% of units sold, HD DVD at 28% (changed from 66% and 34% the week before, respectively) and combo players taking 6% of player sales. These figures still don't reflect the PS3 or the price-dropped Xbox 360 add-on, but right now it'll really be more interesting to see if Toshiba can hold any of that marketshare after today's events.
Latest NPD report shows Blu-ray sales were no trend
Many were quick to claim that HD DVD was dead when the NPD group's numbers showed Blu-ray players had a 93 percent share the week after Warner's announcement. While those numbers were staggering, those with a level head wanted to wait to see if the blue camp could keep it up, and now according to the same firm, it did not. In fact the very next week sales were back to where we'd grown to expect them, about 65 percent Blu. As interesting as these numbers are -- as many have pointed out in the past -- Amazon and other online retailers are not included, and we all know how popular HD DVD players are on Amazon. While at the same time Blu fans would argue that many buy the PS3 as a Blu-ray player, which is also not counted in the study. Regardless, the better metric for the success of a packaged media format is media sales and with two weeks at about 84 percent and almost no decent red titles in sight, we'd be surprised if Blu victory in that court didn't continue.
NPD clarifies Blu-ray's market share the week after Warner went Blu
Some were very quick to crown Blu-ray the winner when we learned that the Blu-ray player owned 93 percent of the HD movie market the week after Warner went Blu. Evidently the numbers were leaked and the NPD group was quick to respond in an attempt to clear things up. As expected, some were just as quick to discount the Blu-ray success -- which is just as silly as saying the numbers alone mean Blu-ray has won. Two things happened that week that we're not so sure could continue forever; HD DVD sales were down, and Blu-ray sales were up. With some help from a few promotions (free player with a new TV) -- stand-alone Blu-ray player sales were up 30 percent (22k, up from 15k) -- but this alone wasn't enough to shift HD DVD share from 40 percent down to 7. HD DVD only sold 1,758 stand-alone players during the same week, compared to 14,558 the week before. So while Blu-ray was up 30, HD DVD was down 88 percent. So it isn't that the Blu-ray sales were all that spectacular, but instead it was that HD DVD sales were way down. At this point it doesn't mean anything, but if it continues for more than a month then that's whole 'nother story entirely.[Thanks, To everyone who sent this in]
Blu-ray players grab 93 percent of market after Warner went Blu
According to the latest NPD group report, during the month of December Blu-ray players held 60 percent of the HD media player market -- despite the fact that HD DVD players were considerably cheaper. While that might've helped Warner in its decision to go Blu, the move has definitely had a dramatic effect on player sales since. According to the same study the week after the announcement, Blu-ray players were able to grab 93 percent of the market, which puts the year to date (short, we know) share for Blu-ray players at 70 percent. Granted, it's hard to put too much stock in just a week or two of data, but if this and the recent media sales numbers (85 percent) becomes a trend, maybe this won't be such a slow death for HD DVD after all.[Via Blu-ray.com]
NPD Group reports on HD disc format adoption
The NPD Group released results from a HDTV owner survey that showed even though 52% of respondents were aware that HD disc players were available, only 11% planned on buying one in the next six months. It turns out that most people are happy with their standard DVD players and unhappy with the price of the HD units (62% waiting for prices to fall). Even though respondents were more aware of HD DVD than Blu-ray (29% vs. 20%), it's not a glowing outcome for fewer than 1-in-3 owners of HDTV's to not know about these formats by name. NPD offered a couple bits of advice to the industry that we can get behind -- tell people about the advantages of HD discs over DVD, and put more titles out in the marketplace. The respondents who have an HD player in their homes plan on replacing almost one quarter of their DVD library with the new HD format.
Official Holiday 2006 console sales figures don't surprise
Well despite the fact that CNBC recently reported some erroneous figures regarding console sales for this holiday season, it looks like the official numbers still show a resounding Xbox 360 victory among next-gen systems during the month of December. Official stats being published by The NPD group show that Microsoft sold 1.1 million of its boxes last month, followed by Nintendo with 604,000 Wiis, and PS3 bringing up the rear with 491,000 consoles sold. It's not all bad news for Sony, however: when we add in all systems sold during this time period (not just the three that everyone has been fussin' and fightin' over), the overall king of Holiday Season 2006 was actually the PS2, with 1.4 million systems pushed out the door. Sure these last-gen boxes can be found for much cheaper than their newer counterparts, but at least Sony is making a profit off of them, unlike the $300+ it's losing on each 20GB PS3. We'll leave the analysis of these numbers to the experts (a.k.a. fanboy commenters), and simply note that we were way ahead of the curve on this one -- we picked up Holiday 2006's most popular console way back in October 2000.
Slow news day yields... corrections of falsified numbers [update 1]
The video game industry holiday sales numbers, as some of you commented, ended up being random estimates attributed to the NPD Group when in reality they were random estimates told by CNBC. The true numbers will be released on January 11, along with another post about said numbers here, naturally. NPD's David Riley speaks: "Recent media reports erroneously cited The NPD Group as having provided to CNBC December '06 retail sales for the video game industry. Although the specific CNBC segment included NPD's November '06 console hardware install base sales figures, there were no sales figures or forecasts from NPD for December 2006. NPD's December/Year-End sales data will become available Jan 11." Hooray! Toss in your estimates now.[update: added link to previous article... an "oops" of its own, eh?]
Game sales up 16% in October on lower average price
On the heels of THQ's quarterly report comes some more positive gaming news. According to the NPD Group the gaming industry has posted a 16% jump in software sales. An interesting trend noted by the NPD Group is the average price of games sold has declined by $2.40. The decline in price could be confusing to many gamers, especially those staring down the $60 price tags on new Xbox 360 (and soon to be PS3) games. The decline in price was due mainly to the fact that new release PS2 games are now in the $40 range and six of the top ten software games were for the PS2 (the top ten was rounded out by three Xbox 360 games and one Xbox game). If the revenue is up and the game prices are down this means that unit sales are WAY up. The data pokes in the eye the argument that next-gen software needs a $60 price point to make a profit. If PS2 games are selling for $40 -- and selling well at that -- keeping $60 price tags emblazoned all over our precious games is absurd when gamers are clearly buying $40 merchandise in droves. By selling next gen software at even $50, gaming companies can easily use economics of scale to their advantage. The increased production costs can easily be drowned out by more sales generated by a lower price point. Stop gouging us guys ... you know you can make a profit without that $60 price tag.
Apple's US market share still falling and rising with the tides
Yesterday's prelim 4th quarter report was great news for Apple's health as a manufacturer of personal computers - they shipped over 1.6 million Macs, the most ever in a quarter and 30% more than the previous quarter. Today's news of a rise to 6.1 percent market share in the U.S. from Gartner, however, has the Mac web doing the market share dance all over again, as just a year ago this month it was the NPD Group reporting that Apple's U.S. market share - excluding online sales - had risen to 6.6 percent. The confusion ensues when considering MacNN's conflicting report from Gartner claiming Apple's U.S. share just rose to 6.1 percent. Of course where and how these different groups are getting their numbers is unbeknownst to this blogger, but methinks something might have been lost in translation between all these analysts.Still, while market share numbers might be getting a little fuzzy as of late, we can at least trust Apple's announcement of selling the most.Macs.evar in a quarter, and that's alright with me.
