Video iPod could juice up Apple

Electronic’s darling pushes sales past US$1B in quarter

Apple Computer Inc. knows how to create a buzz.

The company has sent analysts and consumers into a tizzy amid reports it could release a video version of the wildly popular iPod digital music player as early as today at a press conference in San Francisco.

The video-enabled iPod has been the subject of rampant speculation for months as the market looks for ways Apple can maintain the iPod’s sales momentum and its lustre as one of the world’s most innovative consumer electronics providers.

“ The iPod has been carrying the company,” said Rob Enderle, an independent tech analyst in San Jose, Calif. “It makes sense [to have a video iPod] so they can have a complete line.”

The pressure on Apple to produce a video-enabled iPod and have it become a big success may have intensified yesterday when the company posted lower-thanexpected fourth- quarter sales that just happened to surpass US$1billion for the first time in a quarter. The miss caused the stock to fall more than 10% after hours, although, in regular trading, the stock closed at US$51.59, up US$ 1.22, or 2.4%, on Nasdaq, after already rising 60% this year.

The iPod has been instrumental in reversing Apple’s fortunes. The company has sold about 28.5 million since 2001, when it hit the market, and it now accounts for about 33% of Apple’s revenue.