Mp3 Player Price War Looming

zenmicro10795-lblue_1_1_61.jpgDespite its best efforts, and might good efforts I must add, Creative Technology has failed to stop the Apple-roller coaster called IPod. In the key holiday season, the company sold around 2 million mp3 player including its sleek Creative Zen and MuVo products. (MuVo versus iShuffle), a distant second to Apple, which sold about 4.6 million devices. Still in the quarter the company saw its profits decline to $11.8 million from $41.5 million a year earlier. Sales increased 50% to $375.1 million from $250.4 million. News reports indicate that company is expecting a 50% increase in sales (not profits) for the first quarter of 2005. In order to do that, clearly the company will have to meet the challenge being posed by IPod, by cutting prices. Meanwhile others like iRiver have just come out with hot new products as well. Now all this doesn’t factor in the wild reception iPod Shuffle has had so far, and how it impacts the flash-memory based Mp3 player sales of non Apple vendors. Let the price wars begin!

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