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Apple Shedding the Shuffle?

Troy Wolverton

Apple Computer (AAPL Quote) may be about to phase out -- or replace -- one of its low-end iPods, if the availability of the device on the company's Web site - and through its retail partners -- is any indication.

Customers can no longer buy the one-gigabyte iPod shuffle through Apple's Web store or through those of such leading online retailers as Amazon.com(AMZN Quote), Wal-Mart(WMT Quote), Best Buy(BBY Quote), and Circuit City(CC Quote).

Apple's Web store has been out of stock on the 1GB shuffle since mid-December, according to enthusiast site AppleInsider.com.

Amazon's site says simply that the "device is unavailable" from the e-commerce store. However, Amazon does list several third-party merchants that are selling the Hewlett-Packard(HPQ Quote)-branded version of the 1GB shuffle through Amazon's site. H-P announced in July that it would stop selling its version of the iPod.

In addition, a survey of 12 Apple retail stores chosen at random found that seven of them -- including a store in Los Angeles and one in New York's SoHo district -- did not have the 1GB shuffle in stock and didn't know when they would receive it. Representatives of two other stores -- one in Tampa, Fla., and one in Cambridge, Mass. -- said their outlets only had limited quantities of the 1GB shuffle available.

The shuffle has been one of Apple's most popular iPod lines, helping the company extend its dominance of the digital music player market. Thanks to the shuffle, the company instantly went from having no presence in the flash-based music player market to being the leading player.

In contrast, Apple's iPod nano models, which were expected to be among the hottest products this holiday season, are widely available.

Apple representatives did not return calls seeking comment, and the company has not announced any plans to cancel or replace the device. However, the lack of supply could be telling.

The company typically sells down inventory of models it plans to replace well in advance of actually introducing replacement models. Prior to introducing the flash-based nano in September, the company bled down its inventory of iPod minis, the model the nano supplanted. The strategy resulted in disappointing iPod shipments in the company's fiscal fourth quarter.

Another possible hint from Apple that it plans to replace the 1GB shuffle is that its Web store says it doesn't expect to have the device in stock again until mid-January. That would come just after Macworld, the annual gathering of Apple product developers and enthusiasts. Apple CEO Steve Jobs introduced the shuffle at Macworld last January.

Since then, Apple has updated or replaced its two other iPod lines, swapping the mini for the nano and then in October, adding video-playing capabilities and bigger screens to the company's top-of-the-line hard drive-based iPods.

In other words, the shuffle line may be due for an update.

Apple rumor Web sites and analysts have speculated on what the company might do next with its shuffle line. Among the possibilities: a smaller design or replacing the 1GB shuffle with a 1GB nano. Unlike the shuffle models, the nanos have a screen and a wafer-thin design.