So it was an iPod Christmas

Om Malik, Wednesday, December 27, 2006 at 4:21 PM PT Comments (17)

A few days ago we noticed that there was a serious performance problem affecting the Apple iTunes store. Our speculation was that perhaps the iPod was selling much better than analyst predictions. A gentle reader chided us for being in a reality distorted field, for not criticizing Apple’s lack of planning. I admit to an eggnog-induced momentary lapse of snarkiness, but our reader was right. What were they thinking in Cupertino?

Maybe not a super iPod christmas, that was clear. It seems even they were unprepared for what was to come. According to Hitwise:

  • The market share of visits to the Apple Store (store.apple.com) showed an increase of 110 percent when comparing Christmas Day 2006 to 2005.
  • The Apple Store was the fourth most visited website in the Hitwise Retail Index on Christmas Day 2006.


“For the third holiday season in a row, the iPod has been the must-have Christmas gift,” said Bill Tancer, general manager of global research at Hitwise. “Competitive offerings have not yet succeeded in capturing the attention of music listeners, and the surge in visits to the Apple Store shows that iPod owners are also engaged in filling and accessorizing their new devices.”

Les Posen, who often writes insightful commentary about all things Apple, was one of the few who was unrelentingly optimistic about iPod’s chances this holiday season. On Dec. 26, he noticed that:

“Seven out of 20 searches on Google that came to my site were about using iTunes Music cards… So, I’m guessing - interpolating - these cards were huge stocking-stuffers this year, and perhaps many people were “gifted” with the less expensive iPods, like Shuffles and Nanos, together with iTunes cards.”

So did you get an iPod as a gift this Christmas?

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February 26th, 2007
10:04 PM PT

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16 comments so far

December 27th, 2006
5:01 PM PT
Cap'n Ken said:

I gave my wife a 30GB iPod and iTunes card to replace her old Mini; she got another iTunes card as a stocking stuffer. I got a Shuffle as a business gift (to go along with the Nano I got earlier this year as a performance award).

And I bought the iTunes card at CVS. I think it’s clear that iPod and iTunes have become favorite gifts to give and get.

December 27th, 2006
5:19 PM PT
Silus Grok said:

I gave $65 in iTunes gift cards, spread among three people… each of whom ( and I didn’t know this was going to be the case ) received other iTunes gift cards, and one of whom received an iPod.

That’s a lot of iTunes goodness in just one household.

December 27th, 2006
5:37 PM PT

No, but I gave some away. My sister underscored Apple’s product marketing savvy with the iPod line when she looked over all the models, and said, “I can think of a reason why I need every one of these.”

December 27th, 2006
6:06 PM PT
Anne said:

My ten-year-old got an iPod Shuffle from Santa Claus… and I spent all Christmas day trying to authorize our second computer at the iTunes store so he could play the Fiona Apple CD he bought with a gift card.

December 27th, 2006
6:38 PM PT
Bill Day said:

I “gave” myself a Nano 8GB, and gave a family member who owns a 30GB model an iTunes gift card. And I had another family member who was wanting one of the red Nanos but didn’t receive it; I expect it to be an “iPod after-Christmas” in the not too distant future for her…

December 27th, 2006
7:52 PM PT
Sameer said:

I got my wife one from the Apple store at the Stanford Mall in Palo Alto. They had an “ipod express” line.

If one did not know better, given the speed at which they were flying across the counter, you would have thought they were giving out hot-cross buns!

December 27th, 2006
9:03 PM PT
DAG said:

Many people use iTunes that do not own an iPod. I was buying music with iTMS before I ever bought a ‘pod. For pre-digital top 40 it’s about as good as what you get on CD and you don’t have to leave the house.

Despite my considerable CD collection I have bought over 2,000 songs from iTMS and I know that I am not the only one who has used it this extensively.

December 27th, 2006
10:11 PM PT
Ericson said:

I bought a Nano for a old friend of mine this holiday. Bought a shuffle for my brother. Did not consider another brand at all.

December 27th, 2006
10:35 PM PT
hmmm said:

Downloads from iTunes are always relatively slow, and they stall quite often.

It’s been this way ever since the shuffle came out, and either Apple just can’t install servers fast enough, Apple isn’t able to maintain a data center that will let its customers utilize the full capacity of their cable modems, or Apple sees no economic incentive to make it any faster.

December 28th, 2006
2:38 AM PT
ben said:

i got an ipod 8gb and it whouldn’t download music at all or gift card.It was like my computer,labtop and ipod was all freaking out.

December 28th, 2006
7:20 AM PT
Ray said:

I had been resisting for several years. Then, my wife won an iPod Nano at a conference and after playing around with it, I knew I wanted one.

My wife gave me a Nano for Christmas…and a $25 iTunes card.

December 28th, 2006
8:37 AM PT
Patrick Hunt said:

No new iPods in my Mac/iPod-friendly compound… yet. But I did gift myself new Nike+ running shoes as a gift and as motivation to get off my lazy bum. Now I have to gift myself the Nike+ iPod transmitter/receiver, and likely a new armband that accommodates it. If this excellent example of integration doesn’t get me moving, I’m in serious trouble! ;-)

December 28th, 2006
8:37 AM PT
Les Posen said:

Hey Om,

Les Posen here…

Ta for the blog mention.

But what is really interesting is that you mention that I made my blog entry about iTunes music cards and iPods being huge this Christmas on December 26. You need to remember that here in Australia I’m at least 16 hours ahead of you in the US, so my comments were created on Christmas evening your time, and the Google entries I refer to came from Christmas morning and afternoon when the iTunes Store meltdown was occurring!

December 28th, 2006
9:44 AM PT
Shawn said:

I gave my brother a silver 4GB nano. I considered other MP3 players but decided to go with the iPod because 1) he has a MacBook Pro, and 2) I didn’t have time to figure out how any of the other online music services work (and which of them, as well as the other players) are Mac-friendly.

December 28th, 2006
9:57 AM PT
joe said:

isnt it an akamai issue? vs. an apple issue? i thought they were supposed to be ensuring content delivery on itunes…

October 2nd, 2008
12:34 PM PT

I think I could lose the Nano 4, its just too light. Anyone else agree that these things are getting too light?

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