Sales of iPods will only account for 7% of Apple's total revenues in 2011, pushing Taiwan-based makers in the iPod supply chain to shift their focus to the production of parts and components for iPhones and iPads, according to sources from upstream component suppliers.

Although Apple will continue to push its iPod series products including the shuffle still priced at US$49, an updated nano, and the iPod touch which has been reduced US$30 to US$199, the sources pointed out that their current orders are much weaker than those in past years.

As Apple is gradually shifting its focus to products such as iPhone and iPad, the company's Taiwan-based upstream component suppliers for iPod series products including Genius Electronic Optical, Primax Electronics, Foxconn Electronics (Hon Hai Precision Industry), Quanta Computer, Inventec Appliance and Pegatron Technology are also shifting their shipment proportions to those products since they contribute better profits.

Source:digitimes