iPod continues its painful decline as Q3 sales drop a record 32% year

Announced with its third-quarter earnings report, Apple today reported strong iPhone sales, but the iPod - the company's pre-2007 hit - has continued to slip, falling a staggering 32 percent year-over-year (YoY) for Q3.

Unsurprisingly, iPod revenues are down 31 percent.

This is not a new trend. Back in January, we reported that iPod sales were down 18 percent compared to sales from Q1 2012. Going back through 2010, we found that the iPod has never seen such a decline on a YoY basis. The previous high was a 27 percent drop in Q4 2011.

Here's the a clear look at the awkward, yet generally consistent downward trend (all percentages are YoY):

Seeing the iPhone eat away at iPod sales is no surprise, but it still paints an interesting picture of the way Apple cannibalizes its own products.