Apple has disputed a report which claims that sales of tracks via iTunes fell by 65% in the first half of 2006.
The report by research firm Forrester didn't make great reading regarding the performance of the flagship digital music store. It suggested that while sales of iPods boomed, sales of downloads via iTunes were down considerably, possibly because the initial boom where early adopters bought up back catalogue via the iTunes platform had come to an end, and newer iPod owners preferred to acquire music from other sources as MP3s, or to rip them off CD, thereby avoiding the restrictive DRM that comes with music bought via iTunes itself. Although Forrester admit it is too soon to draw any real conclusions about iTunes buying trends, the research firm says it can't see how the venture can be especially profitable for the computer firm.
But Apple say that Forrester's findings are "simply incorrect". They never divulge any specifics about iTunes sales or profitability, so Forrester's findings were based on the buying habits of iTunes users on their consumer panel. While Apple still wouldn't release any specifics about the performance of their download platform, they told reporters yesterday that iTunes made a profit in the quarter up to the end of September.
Forrester's research follows other research from Neilsen Soundscan that suggested all music download services had seen flat or declining sales this year.