Sales fell 20 percent from a year ago and revenue from those sales dropped 15 percent as Apple sold just 7.5 million iPods in its most recent quarter, the lowest number since the fall of 2005, CNNMoney reported Friday.
The iPhone, which can also store and play music, has cannibalized sales of the iPod, and other smartphones with similar capabilities, like Google's Android devices, may also be taking sales away from the iPod, industry experts say.
The situation could get worse this fall when Apple unveils its iCloud service allowing customers to wirelessly push songs to all of their connected devices.
The iPod shuffle, nano and classic models, which make up half of all iPod sales, don't feature wireless connectivity.
Still, no one expects Apple to turn its back on the iPod anytime soon.
"Apple is gauging the market demand quite well for the iPod as well as their expectations with suppliers," analyst Ben Bejarin, director of Creative Strategies, said. "So until they really start losing money, I think they will continue to support the iPod business to some degree."
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