iPod shuffle takes 58% of flash market | iLounge News

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iPod shuffle takes 58% of flash market

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By LC Angell

Contributing Editor
Published: Wednesday, May 4, 2005
News Categories: iPod

Apple’s iPod shuffle has now captured 58 percent of the flash memory-based audio player market, according to NPD data cited by Apple CFO Peter Oppenheimer in a meeting with Merrill Lynch analyst Steven Milunovich. The number is up from 43 percent share in February.

In a research note to clients obtained by iLounge, Milunovich said Apple isn’t concerned about mobile phones gaining more music capabilities. “Management argued that iPod will remain the best way to manage and listen to music with MP3 capability in handsets more complementary than a replacement,” he said. “The negatives of music on a handset include a worse user interface and limited battery life. Mr. Oppenheimer said he ‘doesn’t foresee problems working with carriers,’ implying that negotiating shared economics wouldn’t be a deal killer.”

Interestingly, Milunovich also said he expects wireless and video features in iPods for the holidays. “Our guess is that iPod will run short video clips, such as Britney Spears gyrating while ‘Toxic’ plays,” he said.

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Comments

1

You know its sad when the shuffle has over 50% of the flash market (hides).

Posted by thesire on May 4, 2005 at 1:38 PM (PDT)

2

Why? The iPod shuffle is better than most other flash players

Posted by tom.b on May 5, 2005 at 10:00 AM (PDT)

3

The iPod shuffle is better than most other flash players

Define “better”?

Posted by Demosthenes on May 6, 2005 at 6:25 AM (PDT)

4

I wouldn’t say that it’s necessarily better. It has the simple, sleek design that Apple has been known for, and it’s also incredibly cheap. The marketing for the iPod shuffle is also something that seemed interesting to me - before the iPod shuffle, it seems that most people were -aware- of MP3 players, but there wasn’t enough attention brought to the market. I’ve personally never seen a flash MP3 player marketed on TV other than the iPod shuffle. Convince people they need something, already have a strong background in the subject with recommendations from friends, and all of the sudden you’re capturing 58% of the flash player market. And anyone that thinks the PSP is going to kill the iPod shuffle is a #####. It’s obvious they appeal to two completely different markets.

Posted by Ravenhaft on May 6, 2005 at 8:33 AM (PDT)

5

Demosthenes: thank you.

Ravenshaft: I agree with most of what you had to say, but where did “..and anyone that thinks the PSP is going to kill the iPod shuffle…” come from?  Any person who actually thought that clearly needs to be ignored.  I’d like to add that The Shuffle has a clear advantage over every other flash player, regardless of its lack of functions: it’s part of the iPod realm.  Everyone else
is not.  And like you said, it also didn’t hurt to have a massive ad campaign, either.

Posted by flatline response on May 7, 2005 at 5:39 AM (PDT)

6

I think flatline’s comment about the Shuffle being part of the iPod ecology is spot-on. That’s really the only and best thing it has going for it. The featureset and capabilities of all the low-end flash players are so minimal, basic, and limited that they are virtually indistinguishable. Really, yawn. The iPod shuffle could have been made four years ago by Creative or Rio, today companies like LuxPro copy it effortlessly, and in 5 years time units very like it will still be in production, probably from knock-off Vietnamese and Laotian manufacturers.

If you want more than one playlist on your flash player, then the shuffle is obviously not the best. If you want a radio, then it obviously fails to be best here also. If you like a screen to keep track of what’s playing, then it’s obviously not best as well. If you like being able to change AAA batteries quickly for prolonged trips,then it fails again. If you like being able to take quick voice memos or record meetings, then it fails again.

It’s all about the marketing.

Posted by Demosthenes on May 7, 2005 at 7:01 AM (PDT)

7

it’s all about marketing and simple supply and demand. yes everyone loves their iPods so people don’t really feel they’re taking a chance with they buy a shuffle, but the iPod shuffle is also very inexpensive compared to other flash-based players. I keep on seeing 512mb flash players for sale for $200—twice the price of a shuffle. its popularity has much more to do with the price than anything else.

Posted by jmaurand on May 8, 2005 at 10:38 AM (PDT)

8

I keep on seeing 512mb flash players for sale for $200

I think you’re paying too much. I see trinkets like the less than $100 regularly.

Posted by Demosthenes on May 8, 2005 at 3:11 PM (PDT)

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