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At home, the accelerating transition from dial-up to broadband Internet access further fuelled the appeal of purchasing music online, and by April 2007 the company sold its 100 millionth unit. Through much of the decade, iPods consistently held 75% market share for media players, and have tallied well over 300 million sales to date.
That's the good news. The bad news is the iPod, at least the iPod we've always known and loved, is dead. Blame the iPhone and its younger, bigger brother the iPad. The first iPhone, introduced in 2007, included built-in iPod software, a standard every iOS-powered device released since then — including the iPod touch and iPad — has continued to follow. As smartphones and tablets have become increasingly multifunctional, consumers looking for more bang for the buck have been moving away from standalone media players.
The numbers confirm the industry's transition. Sales of hardware-based iPods have tapered off since 2009, and now make up only 7% of Apple's revenue. The decline probably would have been worse if not for the iPod touch. By melding the app-friendliness of the iPhone with a carrier-free purchase methodology, this iPhone-without-the-phone has allowed Apple to leverage its iOS investment among buyers who don't want or need another phone.
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