Forrester blog responds to iTunes kerfuffle

"iTunes sales are NOT plummeting!" is the latest headline on the Forrester blog. You know Forrester, don't you? They're the ones behind the report the other day about iPods, iTunes and credit card transactions. That's the report that set everyone talking about whether iTunes was a failure and whether Apple's digital media sales were suddenly collapsing. Apple's stock dipped several percentage points on the news.

Today, Forrester's blog points out that their findings were misinterpreted. iTunes sales did drop after the holiday rush last year but Forrester did not find that iTunes sales as a whole were on a general downward trend. Instead, it looks like iTunes sales are leveling off and that Apple's overall profitability should not be affected; their profits come mostly from iPod sales and not from iTunes.

Good news for Apple lovers. Bad news for the newspapers with their overblown headlines.