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Apple Passes Amazon in Music Sales
Thursday, June 21st, 2007 at 4:00 PM - by John Martellaro
Apple has steadily climbed in its market share of music. In the first quarter, Apple passed Amazon and is now the number three seller of music in the U.S., according to the NPD Group.
The popularity of Apple was attributed to the healthy sales of iPods during the 2006 holiday season. The current market share numbers in percent, are:
- Wal-Mart - 15.8
- Best Buy - 13.8
- Apple - 9.8
- Amazon - 6.7
- Target - 6.6
In addition, first quarter data from SoundScan showed that the sales of CDs were down more than 20 percent year-over-year. "With only a couple of weeks remaining in the second quarter, industry CD sales have shown only marginal improvement over first quarter levels," Pali Capital analyst Richard Greenfield said Thursday.
Despite Wal-Marts first place showing, the trend in CD sales reportedly has them thinking about cutting back on the retail space, according to Russ Crupnick at NPD.
Wal-Mart, which sells iPods, may be starting to realize that theres more money in the hardware (in terms of revenue per square foot) and that on-line music sales, as they supplant the physical CD, is best left to others, namely Apple.
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