| Santa swamps iTunes |
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Apple's online music store iTunes recovered its rhythm today after being overwhelmed by its own popularity over Christmas. So many people with freshly unwrapped iPods or iTunes gift cards went online on Christmas Day that the US website buckled under the load, becoming inaccessible to some and responding sluggishly for others. Visits to the iTunes website that day were 413 per cent higher than on Christmas Day in 2005, according to industry intelligence service Hitwise. Apple did not return calls for comment today, and the iTunes store appeared to be operating normally. While the Christmas Day overload at iTunes caused grumbling by some fledgling iPod owners, analysts saw it as an encouraging sign that demand was far greater than Apple had anticipated. "For the third holiday season in a row, the iPod has been the must-have Christmas gift," said Hitwise global research manager Bill Tancer. "Competitive offerings have not yet succeeded in capturing the attention of music listeners, and the surge in visits to the Apple Store shows that iPod owners are also engaged in filling and accessorising their new devices." Apple's iPod is the most popular MP3 player in the world, and iTunes accounts for 75 per cent of the music sold online, according to industry statistics. Some analysts expect pressure from competitors such as Microsoft's newly launched Zune players and online music store to nibble away at Apple's market share.
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