The iPod Phenomenon

Apple continues to reap the benefits:

Apple Computer Inc.'s profit more than quadrupled to a record $320 million in its third fiscal quarter, ended June 25, bolstered by a rise in shipments of the iPod portable music device and Macintosh computer sales, the company said yesterday.

Shipments of the Apple iPod surged to 6.2 million units in the third quarter, from 5.3 million in the previous three months, surprising analysts who were expecting a decline. Shipments rose 616 percent over last year's third quarter.

"At the end of the day, the market for the iPod is more resilient than they thought," said Gene Munster, a senior research analyst with Piper Jaffray & Co.

The booming success of the iPod, which debuted in 2001, is carrying over to Apple's other products, Munster said. The company posted a 35 percent increase in computer sales from last year at a time when the rest of the industry saw about an 11 percent jump in sales, he said.

Analysts said the increases could continue over the next few months.

This is also a case in point where lawsuits and regulation favor large corporations. After all, a growing segment of Apple's iPod related revenue comes from the iTunes music service, itself viable largely due to the demise of Napster as a free music portal.

Still, Apple took the risks, and Apple rightfully reaps the rewards.

As someone who's bought 5 iPods in the past 2 years, I'm a believer.