iPod Meets its Match…Maybe
It was a busy Friday at the Consumer Electronics Show in Las Vegas. While Yahoo and Google did battle with their new and improved respective online services, plenty of upstarts arrived ready to snatch a piece of Apple’s digital music monopoly. Apple, though, did not attend the event.
While the company’s iPod Nano dominates the chip-based memory segment of the market, XM Satellite Radio Inc was touting its new Samsung Electronics-designed MP3 player with the tagline: “It’s not a Pod, It’s the Mothership.” All braggadocio aside, it’s an uphill battle for Samsung considering Apple has a marketing budget to the tune of $100 million, with 75% of the market share in its grasp.
But those who attended with new products in tow argued that giving people bigger screens at a cheaper price could give them some leverage. “We found that the bigger screens are what people want,” EchoStar Communications Corp CEO Charles Ergen told Reuters. His company’s new PocketDish player lets users view programs like “Desperate Housewives” recorded on television set-top boxes. Ergen adds, “If you have the iPod, that costs 99 cents; with the PocketDish, it’s free.”
Apple’s whole competitive advantage, though, is the portability and file space of the iPod, regardless of its price. Whether XM and Samsung can test the mighty Silicon Valley giant could be one of the more interesting developments of this sector in 2006.
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