iWatch May Ultimately Replace iPod, No iPod Updates Expected in 2014
A research note (via Barrons) from Christopher Caso, an analyst with Susquehanna Financial Group, reiterates previous analyst reporting 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.
![ipodfamily.jpg Ipodfamily](https://images.macrumors.com/t/-3-gEhkOXiJFbLHNR9dERd8chDE=/400x0/article-new/2014/04/ipodfamily.jpg?lossy)
Apple CEO Tim Cook said earlier this year that the iPod "is a declining business", 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 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.
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