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Apple's iPod Dilemma

July 29, 2011
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While Apple is setting records with its iPad and iPhone, the iPod is sinking fast.

Apple sold just 7.5 million iPods in its most recent quarter. It was the lowest since the fall of 2005, when the iPod was just 4 years old.

Unit sales fell 20% from a year ago and revenue from those sales dropped 15%.

It's still a lucrative business for Steve Jobs & Co., bringing in $1.3 billion in sales over the past three months. But sales have been in a free-fall for the past three years.

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