Apple entered the MP3 player market with its iPod in 2001 and by 2014 it had a 70 percent share of this market. However, global MP3 music player unit sales over the past few years have fallen dramatically and are expected to decline further by 2016 as smartphones continue to replace MP3 devices. In addition, MP3 sales may be adversely impacted with the expected launch of wearable digital watches. Currently, Apple's iPod SBU appears to be a __________.

Question

Quizplus · Accepted Answer

The iPod has been on the market for over a decade and has enjoyed a dominant share of the MP3 player market, generating significant revenue and profit for Apple. Therefore, it falls into the category of a cash cow, a product or business unit that has a high market share in a low-growth market.

Apple Entered the MP3 Player Market with Its IPod in 2001