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Analyst: New Competitors Likely To Eat Into iPod Market Share

Analyst: New Competitors Likely To Eat Into iPod Market Share

by , 12:00 PM EDT, October 26th, 2004

The AP has published a story on the music player market that focuses on all the recent iPod competitors entering the space. The story quotes NPD analyst Stephen Baker as saying that while Apple is likely to maintain its current status of market share leader, the new competitors are likely to eat into that share. From the story:

"There's no way they could sustain more than 70 percent share over time," NPD analyst Stephen Baker said of Apple. "That's very very difficult to do especially when the product is based on a commoditized component, the hard drive."

Here's how the competition stacks up, according to Baker: "Rio has a long history in the market. Creative has a strong pipeline of products. You can't count Samsung out. We can't forget Sony - that they'll eventually find some market for these products with a strong design and distribution channel, and Dell will bludgeon everybody with price."

But the challengers face a daunting task as they battle to nip at Apple's reign. In August - NPD's latest available figures - Rio and Creative ranked a very distant second and third place in US market share, with 2.4 percent and 2.3 percent respectively.

There is much more in the full story, and we recommend it as an interesting read. It offers a fairly comprehensive overview of the current market.

The Mac Observer Spin:

Mr. Baker is right. It is not likely that Apple will be able to maintain 70% of this market, but we see the company continuing to be the 800 pound gorilla, if not the Microsoft, of this space.

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