Is the Apple iPod fad fading out?

Is the Apple iPod fad fading out?

Investment firm Goldman Sachs reported on Thursday that they are seeing the sales of the popular digital music player iPod slowing down. This particular device has played a major role in bringing back Apple as a major force in the market and in combination with iTunes digital music store; they have helped the company financially in a big way.

This report of falling sales has started affecting the company already as the shares of the Apple Computer Inc. fell by nearly 5 percent yesterday. The report was also supported by more media sources like AppleInsider who claimed that Apple has a glut of most iPod models. iPod Shuffle seems to one of the major reasons behind this.

Apple shares fell $1.80 to close at $38.24 on the NASDAQ Stock Market in the afternoon trading. This trend has been noticed for the first time ever since the company launched iPod way back in 2001. There are also rumors around that the company is overstocked with some models of personal computers and other products.

Apple has for the time being declined to comment on these rumors.