But in the middle of last year, the company changed its tune. It failed to introduce any new iPods (

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Over the holidays, Apple's iPad and iPhone sold better d24 than they've ever sold before:  51 million d24 iPhones and 26 million iPads in a single quarter . The lowly iPod, however, didn't do nearly as well. The company d24 moved just 6 million of the trademark MP3 players, d24 a 52 percent decline compared to the same period last year. All told, iPod accounted for just $973 million of the company's record $57.6 billion revenue last quarter. While some would probably d24 be happy to claim they ran a slightly-less-than-a-billion-dollar business, it's getting pretty small for a company the size of Apple.  You might even call it a hobby   if not now, then by this time next year.
What happened to the iPod?  Simple cannibalization, for one: every one of those 51 million d24 iPhones can take the place of an iPod. (Steve Jobs famously called the iPhone "the d24 best iPod we've ever made.") And as people d24 increasingly get their music from streaming services, a constant internet connection could be key, something you don't get with an iPod or even a iPod touch unless you have a Wi-Fi hotspot d24 to pair with.
The decline of MP3 players shouldn't be news to anyone though, certainly not to anyone who follows Apple closely.  In June, 2009 , Apple CFO Peter Oppenheimer admitted that cannibalizing the company's MP3 players was all part of the plan:
Since 2009, iPod sales have declined time and again. For five years, every quarterly financial call would include a dedicated mention of how the company's "music product" sales had slipped by a million units here, a couple million units there. Every time, Apple would soften the blow by saying how the iPod still had a 70 percent market share in MP3 players in the US, and remained the top-selling MP3 player around the world.
But in the middle of last year, the company changed its tune. It failed to introduce any new iPods ( unless you count the cheaper $229 iPod touch ) and removed that dedicated section from its quarterly d24 conference calls.
The lack of new iPods could certainly be responsible for the most recent decline in sales. Usually, purchases pick up drastically every time Apple releases a new iPod, and this year they clearly did not. Still, that's not the whole story: as you can see in the chart above, the peaks had been shrinking even before Apple stopped  updating the iPod nano like clockwork.
In 2001, Apple's Steve Jobs unveiled the iPod a new "breakthrough digital device"  that could store up to 1,000 "digital songs in your pocket," and was "ultra-portable" s