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Competitors can't touch iPod price, UI, coolness

updated 02:25 pm EST, Tue December 13, 2005

PJ on iPod Competition

Investment research firm PiperJaffray today said it believes the only way competitors can steal market share away from the iPod is to price their devices below Apple's -- and so far that is not happening. Creative, for example, has priced its 30GB video iPod competitor at $330 -- 10 percent more than the iPod. While it may offer more features, Piper says consumers will stick pick the iPod for its ease of use and "cool" factor. "We believe that non-iPod devices must compete on price to gain adoption, but Apple has such massive relative shipment volume with the iPod that other MP3 player manufacturers are not able to replicate the economies of scale achieved by Apple. We believe this reality will allow Apple to sell iPods at the lowest prices in the market, thus retaining the iPod's pole position for years." The firm also said in its report today that it expects 2006 to be a stronger year for Apple both in terms of its iPod line and Mac products (with Intel machines just around the corner).

 
Previous Comments

Absolutely

12/13, 02:53pm reply

Amen! I hope the new Intel Macs fly off the shelves the way that iPods have been in recent years. Stock analysts keep under-forecasting the price of Apple's stock, term after term, and I hope that the ability to run Windows natively on a hard disk partition of the new Macs will lure millions of former PC owners in the years to come. Then, only price will be holding them back from doing so, as they'd no longer have any excuse to buy a non-Apple computer.

Xiaopangzi

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Joined: Oct 2003

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The Price of Windows

12/13, 03:34pm reply

Yeah, the price of getting a copy of Windows to install on that partition might hold them back!!

JulesLt

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Joined: Jul 2005

0

Mac Hardware Sales

12/13, 04:03pm reply

Mac hardware will make a 2-fold increase next year with the Intel products allowing anyone to run Windows, Linix or OS X on the best hardware in the business. iPod sales will continue to cream the competition.

ClevelandAdv

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Joined: Jul 2004

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hmm..

12/13, 04:06pm reply

I wonder how long Apple will be able to maintain the lead position on mp3 players. How much more innovationcan really be done with such a player, short of making it smaller and/or increasing storage capacity, or adding a bigger video display?

kentuckyfried

Senior User

Joined: Jan 2002

0

Re: hmm...

12/13, 04:38pm reply

How many different audio devices are there? I wonder if Apple has plans for other types of audio players - a home stereo compent perhaps? I know I wouldn't mind seeing one of those. There's still plenty of room for Apple to innovate.

Also, I think it's hilarious that people are crying foul when Apple is enjoying economies of scale. PC peripheral makers still enjoy better economies of scale on the Windows side, but you don't hear Apple whining - they just keep coming out with better products.

hayesk

Professional Poster

Joined: Sep 1999

0

lead position

12/13, 04:43pm reply

other players in the game have the same problem, what features can be added whiteout bloating the device.

a 2-fold increase? make that a quadruple increase just for a start. 90% of the people i know want a mac if it can run Windows and gets cheaper. If the price go's down, and it will, the Mac is going to be the iPod of the personal computer. I always taught clones would be necessary to keep up with demand but the iPod proves that Apple can handle a tenfold easily.

Concentrating on a few models can make them cheaper than the competition and stay cool at the same time. A killer combination that i'm really looking forward to. :)

Peter Bonte

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Joined: Aug 2001

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Keep the good stuff comin

12/13, 04:47pm reply

I'm already planning to but a new mac mini in January, or as soon as they are released, and look forward to a new powermac model(intel chip) later on in the new year.

2Four

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Joined: Sep 2005

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Same here

12/13, 05:08pm reply

2006 should be a crazy year with insanely great products from Apple. I truly believe the Intel switch was a brialliant brilliant move on the part of Apple. Piece of advice, BUY as much Apple stock as you can afford.

jarod

Fresh-Faced Recruit

Joined: Apr 2005

0

well...

12/13, 09:41pm reply

Apple probably has about a year or two left on the iPod bubble. Unless the video side really takes off or Apple develops another way to use your iPod, then the old adage "What goes up must come down" should kick in eventually.

bigpoppa206

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Joined: Jun 2003

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