Analyst: Apple Must Upgrade iPods

     Shaw Wu of American Technology Research says in light of the small 5% growth year-over-year for iPods, Apple must significantly increase iPod features in order to avoid “facing cannibalization from cell-phones” and other digital audio players which deliver basic media player functions. In other words, iPods have to differentiate themselves from cell-phones and generic digital audio players by offering more higher end features. AmTech also lowered its ‘08-’09 forecasts for Apple annual revenue, earnings per share, and price target.

D.S.