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The bad news is iPod sales are flat and show no signs of growth. The good news is Apple is selling more than 50 million iPods per year, a number that would have Steve Ballmer monkey-dancing naked could it but be applied to the beleaguered Zune. And there may be more good news in those iPod sales too. Despite predictions of cannibalization by the iPhone, iPod sales have held steady. More importantly, while sales are flat, revenue continues to grow. For Q1 2008, unit sales and revenue were up 5 and 17 percent over 2007, and for the second quarter, the increase was 1 and 8 percent respectively. Presumably, the higher-margin iPod touch is pushing revenues higher. Hopefully, the introduction of the App Store and new iPod touch models will continue this trend. A more difficult trend to follow will be the iPhone.