Market experts believe Apple iPod to continue its domination
Microsoft believes that the competition in the coming months would become much stronger and capable. Creative is on the verge of launching a lawsuit against Apple for breaking their patent through iPodâ€™s interface. However, Apple has little reasons to worry about their continued domination in the digital music playerâ€™s market if we are to believe the market experts.
Piper Jaffray analyst Gene Munster has claimed that Apple is in a good position to continue as the dominant player in the digital music player and online store market. He wrote in a note to the investors that the huge existing market share and growing popularity gives Apple an advantage, which would take more than what competition currently has to break down.
In fact, he slammed the reports claiming that Apple sells their players at a premium and rip off consumers. The report said that Apple’s 30GB iPod, for example, is nine per cent cheaper per gigabyte than Creative’s new Zen Vision:M. He also noted that the new player from Creative had more features like FM radio and recording facility but it lacks the kind of fan following and craze in the market.
Munster added in the report: â€œWe 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.â€