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Summary:

Looks like Apple might finally have some serious competition in the MP3 player business: Samsung. The South Korean giant wants to take over the leadership in the business from Apple by 2007. If the MP3 players they plan to ship are anything like current Yepp models, […]

Looks like Apple might finally have some serious competition in the MP3 player business: Samsung. The South Korean giant wants to take over the leadership in the business from Apple by 2007. If the MP3 players they plan to ship are anything like current Yepp models, well, Apple has nothing to worry. My bet is that in premium markets like Japan, US and Europe, you will see IPod do well. Price sensitive markets well, they might say Yepp, especially is they are cheap enough.

NewsFactor reports that MP3 sales are going through the roof, and by 2009 there will be 132 million devices sold, up from 36.8 million in 2004. IPod is currently the category leader even though available in a handful of markets in comparison with plain vanilla Mp3 players. In order to catch-up, folks are experimenting and cramming new features into these devices. Digital Cameras, Video Playback and even VoIP. In other words classic mistakes that made Mp3 players a disaster to use before IPod came along.

Still Samsung is a serious enough threat – they have crazy money to burn and can discount their products no end to take market share. These guys did it when pushing memory chips, televisions and will repeat the scorched earth tactics in Mp3 players. Samsung hopes to sell 5 million units this year, up from 1.7 million in 2004. 2006, it wants to ship 12 million. Given their whole position as a chip-and-cell phone giant, they might have something going for it. Still, makes me wonder when the cell-phone division which wants to put MP3 players in the handsets butt heads with the MP3 division.

I am so used to the bombastic predictions by these giants, except a few months later you see IPod doing its thing, and others have fallen flat on their face. Apparently, Rio’s Karma has fallen victim to bad Karma.

  1. “iPod Killers” everywhere. Sony, Samsung, Matsushita, Rio, iRiver, CREATIVE and the list goes on.

    Music is just as much about looks as it is anything. Britney Spears – need I say more?

    iPods are about looks. They are a sleek, cool, easy-to-use MP3 device at competitive prices. But of course who of these competitors has a complete vertical solution? Sony and that’s it.

    With Sony, they are dreadfully behind Apple’s iTunes store and will probably never catch up – or will when the war is already over.

    Meanwhile, count on these competitors to beat eachother silly for an ever shrinking portion of the market share pie while Apple continues to consume with a complete vertical solution and easy-of-use that no one else has.

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  2. I can see where Samsung is going – check out your ezmax post. Load it up with features no will use or need and hype it. Kinda like the PDA era. Remember that? Meanwhile there is yet one device to offer an easier integration story that iTMS/iPod or better DRM.

    Of course Samsung can always just copy Luxpro’s copy of the iPod Shuffle and try to ride the publicity wave.

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  3. I totally agree. i think these guys are going to try and bleed each other crazy. the price will be the only competitive advantage they have for now. of well lets all way and see how it plays out

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