Arik Hesseldahl of Business Week writes:
"The iPod as many of us have known it is on the wane and giving way to a more feature-rich family of devices that in time will bear little resemblance to the trailblazing digital music players that helped Apple capture 70% of the North American market. Evidence of the iPod's decline came July 21, when Apple disclosed its first quarterly decline in iPods sold. In the three months ended in June, Apple (AAPL) sold 10.2 million iPods, versus 11 million a year earlier.
Anticipation of the drop-off is "one of the original reasons" Apple developed the iPhone and the WiFi-enabled iPod touch, Apple Chief Financial Officer Peter Oppenheimer said on a July 21 conference call with analysts. Apple is prepared for lower sales of what it calls "pocket products:" the iPod shuffle, nano, and classic."