Next iPod to be wireless - analyst

By Simon Aughton

Posted on 7 Jul 2006 at 11:33

Ever-optimistic Piper Jaffray analyst Gene Munster believes that Apple will counter the imminent arrival of Microsoft's 'iPod killer' with the release of a new, wireless iPod model.

'Apple has stated that ease of use is a key element of the iPod, so wireless functionality is an obvious next step for the product line,' Munster wrote in a note to investors. 'Apple has also stated that the pace of iPod innovation will not change. Historically, that pace has been about two new iPods per year, but Apple has yet to release a new iPod this year. Based on these two factors, we expect a new wireless iPod this Fall.'

He added that Apple should not be too concerned, for now, about Microsoft's belated entry into the market, despite its virtually bottomless cash pile.

'Microsoft is rich with resources to compete with Apple,' he said. 'We do not believe, however, that the yet-to-be-seen Microsoft offering will be a worthy opponent for the iPod.'