iPod #1: Apple Continues MP3 Player Dominance In November
by Brad Gibson
December 30th, 2003
(I only have 3 posts per day..so three articles on this page)
Apple continues to dominate the overall portable MP3 player market in the US with the 10GB iPod the number one selling device leading into the Christmas buying season, according to final numbers just released by industry intelligence group IDC.
The monthly retail numbers show the Apple US$299 10GB iPod "virtually neck and neck in terms of unit sold" with the US$140 Digitalway 128MB player for first and second place respectfully, according to company analyst Steve Baker. The US$399 20GB iPod was third, followed by the US$140 128MB iRiver player. The US$499 40GB iPod rounded out the top five best sellers.
OVERALL BEST SELLING MP3 PLAYERS FOR NOV. 2003 (by units)
10GB Apple iPod
128MB Digitalway
20GB Apple iPod
128MB iRiver
40GB Apple iPod
Of most interest in the overall best sellers category was the fact more expensive, high capacity players from Apple dominated the industry group with a smattering of cheaper, smaller capacity players interspersed. "This category alone tells you consumers are very much divided over what they want - cheaper players to play a small number of songs or more expensive players to house the entire library," said Baker.
In terms of unit sales for MP3 players below US$100, which are mostly flash-memory devices of 128MB or less, IDC reported the top industry leaders were iRiver, RCA, Rio, Samsung and Digitalway, in no particular order.
In the US$150 and up category of MP3 players - mostly 512MB or higher in capacity - Apple controlled 60% of the market, in terms of units sold, Baker said, with Creative Technology a distant second, followed by players from Rio, RCA and Arcos.
BEST SELLING MP3 PLAYER MAKERS OVER US$150 (by units)
Apple
Creative Technology
Rio
RCA
Arcos
Players below US$100 accounted for 40% of units sold in the overall MP3 player market, with those over US$150 accounting for 60%. Flash-based models made up one-third of all sales in November; hard drive-based models took the other two-thirds.
62% of dollars spent on MP3 players went towards those selling at US$150 or more, IDC reported. Of that amount, 80% were used to buy hard drive-based MP3 players, which Apple dominates with the iPod.
In terms of the overall MP3 market in the US, MP3 player sales are continuing to grow at a staggering rate, Baker said. "Overall market growth from November of this year to that of 2002 was 70%," he commented. Numbers recently released by Jupiter Research showed growth has almost doubled in the past year to more than 3.5 million units. Jupiter is predicting 50% growth in the MP3 player market for the next three years. By 2006, the company estimates the installed base of players will top 26 million.
Numbers from IDC only represent the United States and are final figures.
iPod at center of buzz
Rumors predict new affordable player at Macworld
Chronicle Staff Tuesday, December 30, 2003
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A week before the 2004 Macworld Expo in San Francisco, analysts and Web sites that track Apple Computer Inc. are speculating that the company will unveil a line of smaller, cheaper versions of its popular but pricey iPod digital music players.
An Apple spokesman, citing company policy, declined to comment Monday on rumors posted on several Mac user Web sites that the Cupertino computer-maker is set to unveil 2-GB and 4-GB iPods that will start at about $100.
Apple has found success selling 10-GB, 20-GB and 40-GB models, even though their $300 to $500 price tags are a barrier to many consumers.
Sites such as AppleTurns, MacRumors, AppleInsider and ThinkSecret have cited unnamed sources indicating Apple Chief Executive Officer Steve Jobs will unveil the new mini-iPods, along with new colors for regular iPods, at the Macworld Expo. Jobs is scheduled to deliver the opening keynote Tuesday at Moscone Center.
Silicon Valley analysts who follow Apple have also been speculating on a new mini-iPod based on comments emanating from Apple employees, said Rob Enderle, president of the San Jose research firm Enderle Group.
The existing iPods have already given Apple the lead in the portable digital audio player market and are the centerpiece of Apple's iTunes Music Store. By Oct. 16, Apple had sold 1.4 million iPods.
But it would make sense for the company to fill out the lower end of the iPod product line to counter lower-cost MP3 players from a variety of competitors, Enderle said.
Apple might also be interested in an iPod with added multimedia features, such as the ability to display digital photos and video, he said.
Similar portable audio-video-photo devices are being developed by Apple rival Microsoft and several consumer electronics-makers, and combination audio- digital photo devices could be introduced at the impending Consumer Electronics Show in Las Vegas, which is also scheduled for next week.
So "the timing would be ripe' for Apple to announce its own multimedia player plans at Macworld, Enderle said.
New smaller iPod is going for a song..
THE most popular hi-tech toy this Christmas - the Apple iPod - is set to be upstaged by a smaller bargain priced version.
The iPod was a worldwide success before the festive season and became the ultimate celebrity gadget with the Beckhams, Robbie Williams and Ronan Keating all enthusiasts of the digital jukebox.
But Apple has announced it is unveiling a smaller version which will cost around £65 - £185 cheaper than the current bottom-of-the range model.
The newer iPods will hold up to 800 songs and have different coloured cases from the current white iPods which hold up to 10,000 songs.
Before Christmas, high street chains such as John Lewis said the iPod was flying off the shelves. Many stores had to take post-Christmas orders from frustrated shoppers.
The Apple iPod can also hold digital camera images and be used as a dictation machine.
Apple chief executive Steve Jobs is expected to unveil the new iPods at an exhibition in San Francisco next week.
