Dell Cuts Music Player Price 20 Percent to $199
Mon 5 April, 2004 21:36
NEW YORK (Reuters) - No. 2 personal computer maker Dell Inc. DELL.O on Monday cut the price on its digital music player 20 percent to $199 from $249 as it tries to compete with the industry leading iPod from Apple Computer Inc. AAPL.O .
Round Rock, Texas-based Dell introduced the Dell Digital Jukebox, or DJ, which plays digital music in the MP3 format, in October at $249 for the 15 gigabyte version. It has offered a 10 percent discount on the product and said it will continue to do so.
It also cut the price on the 20 gigabyte, or 20 billion byte, version to $279, down from its previous $299.
Both versions are less expensive than their equivalent-sized models from Apple, which cost $299 for the 15 gigabtye model and $399 for the 20 gigabyte model.
Apple has the largest part of the digital music player market, according to market research firm NPD Group, which tracks retail sales. The data does not include Dell because its products are sold only over the Internet.
Apple was top ranked with 32 percent of the music players shipped in February. RCA was ranked second with 13 percent of the market. About $35.6 million worth of digital music players were sold in February.
One analyst said that Dell's DJ has done well because of its price and battery life.
"My understanding is that they're selling pretty well they've taken a nice part of the market," said Avi Greengart, senior analyst with Jupiter Research. "This is not a fire sale."
