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iWatch May Ultimately Replace iPod, No iPod Updates Expected in 2014

A research note (via Barrons (http://blogs.barrons.com/techtraderdaily/2014/04/21/apple-boosting-iphone-6-capacity-says-susquehanna/)) from Christopher Caso, an analyst with Susquehanna Financial Group, reiterates previous analyst reporting (http://www.macrumors.com/2014/04/09/iwatch-2014-predictions/) about the iWatch, saying Apple is looking to enter production with a pair of screen sizes in the fourth quarter of 2014.
 
 Caso says Apple has production targets of 5-6 million units, but believes the iWatch will "essentially replace the iPod in the consumer portion of AAPL's product lineup" and will see lowered iPod sales as a result of customers choosing the iWatch instead. The note says the iPod is not expected to be updated this year.
 
 (http://cdn.macrumors.com/article-new/2014/04/ipodfamily.jpg)
 Apple CEO Tim Cook said earlier this year that the iPod "is a declining business" (http://www.macrumors.com/2014/01/27/ipod-declining-category/), with sales dropping to under $5 billion in 2013, down from a peak of more than $8 billion in 2008. Apple's iPod lineup has not seen a significant update since Fall 2012, other than a minor color change (http://www.macrumors.com/2013/09/10/apple-introduces-new-space-gray-colors-for-ipod-touch-nano-and-shuffle/) to match the rest of Apple's portable offerings. The iPod Classic has not been updated in several years.
 
 Apple has worked hard to have products at a variety of price points, from the $49 iPod Shuffle up to the 128GB iPad Air at $799, and then to the various Mac products.
 
 
 Recent Mac and iOS Blog Stories
 • Apple Releases AirPort Extreme and Time Capsule Firmware Update 7.7.3 With Heartbleed Fix (http://www.macrumors.com/2014/04/22/heartbleed-time-capsule-airport-update/)
 • ElevationLab Debuts Aluminum Elevation Stand for iMac and Apple Displays (http://www.macrumors.com/2014/04/22/elevation-stand-for-imac/)
 • Logitech Adds Multi-Angle Viewing to Ultrathin Keyboard, Launches New iPad Cases (http://www.macrumors.com/2014/04/22/logitech-new-cases-for-ipad/)
 • First Generation Apple TVs Once Again Able to Connect to iTunes (http://www.macrumors.com/2014/04/22/first-gen-apple-tvs-working/)
 • Apple Releases OS X Security Update for Mavericks, Mountain Lion, and Lion Users (http://www.macrumors.com/2014/04/22/apple-os-x-security-update/)
 • Nike Could Partner With Apple to Bring NikeFuel Features to iWatch (http://www.macrumors.com/2014/04/22/nike-nikefuel-iwatch/)
 • Apple Patents Technology to Disable Certain Phone Functions While Driving (http://www.macrumors.com/2014/04/22/apple-patent-distracted-driving/)
 • Aaron Sorkin on Steve Jobs Movie Portrayal: He's 'Part Hero, Part Anti-Hero' (http://www.macrumors.com/2014/04/21/sorkin-jobs-hero-anti-hero/)
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Source: iWatch May Ultimately Replace iPod, No iPod Updates Expected in 2014 (http://www.macrumors.com/2014/04/22/iwatch-could-replace-ipod/)