CHART OF THE DAY: The Rise And Fall Of Apple's iPod

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Apple’s (AAPL) iPod business, measured by unit shipments, shrank last quarter on a year-over-year basis for the first time ever. Apple shipped 10.2 million iPods last quarter, down 7% year-over-year.

But that’s precisely why Apple has invested in the iPhone. On the company’s earnings call, executives said they expected its “traditional MP3” business — the iPod classic, nano, and shuffle — to continue its decline, and the iPhone and iPod touch to drive growth among Apple’s “pocket products.”

Indeed, iPod touch sales grew more than 130% year-over-year last quarter, Apple said, and iPhone shipments grew more than 600% to 5.2 million units in the June quarter.

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