Will Apple flash iPod rock market?

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iPod pricing isn't that bad

When the ipod mini came out there were a lot of people buying
one just for the hard drive. They'd rip out the drive, toss the
rest and save close to $200 over buying the HD at retail - a
pretty good indication that the mini was very well priced.

The competition, on the other hand, has a pretty difficult battle
on their hands. First they have to fight each other to see which
"iPod Killer" is going to take on the ipod. Then they have to over
come the significant investment in music purchased from apple
(close to a quarter of a billion dollars now and probably a billion
dollars within a year) then they have to over come the public (not
tech) perception that the iPod is the best. At the same time,
they get to watch Apple make some very large investment in
R&D to keep the market position strong.

My money is on the iPod retaining it's leadership for at least 18
-24 months, if not longer. At that time there will probably be a
multi billion dollar investment by consumers in music from The
Music Store and this will help maintain a god market position for
Apple.

As for the flash iPod, I think that demand will far outstrip supply,
no matter how many Apple makes in the first year. One article
guessed sales of 22 million flash iPods in the first 2 years.

Posted by: Ken_z   Posted on: 12/20/04 You are currently: a Guest | Members login | Terms of Use

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