The Rise And Fall Of Apple's iPod

Apple Inc. AAPL's decision last week to sell just one iPod model, the iPod Touch, shouldn't have come as a surprise.

Back in 2006, iPod sales accounted for as much as 40 percent of Apple's total revenue, Statista reported. After a few years of strength, MP3 sales started falling, due in large part to the iPhone, which doubles as a portable music player. Sales of iPods peaked in 2008 at 54.8 million and declined year over year until at least 2014 — the last year Apple reported iPod sales as a separate category. In 2014, Apple sold just 14.4 million iPod units, which accounted for a mere 1.25 percent of total revenue, a fraction compared to 40 percent eight years prior. Today, MP3 players are becoming even more obsolete, but Apple likely finds it strong enough to offer to continue selling the iPod Touch. After all, the iPod is effectively a "less expensive, less powerful iPhone without the cellular connection," Statista stated. Also, the iPod doesn't support streaming music services such as Apple's own Apple Music and rival Spotify. Related Links: IPhone Customer's Buying Intent Jumps As New Model Release Looms Microchips, Fingerprints And The Slow Death Of Plastic

"The decision to further reduce the iPod lineup marks another chapter in the popular music player's slow but steady decline," Statista added.