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Wednesday, December 14, 2005

iPod competitors can't compete with Apple

Gene Munster, a PiperJaffray analyst implies the iPod provides a greater value than other MP3 players and since its cool that it will keep its lead for years to come. This seems like a fluff piece intended to increase the stock price since a Creative Zen 40GB and a Toshiba Gigabeat 40GB can be had for less than the 30GB iPod at Walmart.com and Amazon.com lists at least 7 other 40GB MP3 players that are cheaper than the iPod. The study looks only at Creative,Sony,iRiver, and Samsung players and their cost per gigabyte. Looking at street prices, Cnet shows that ALL Creative players can be had at a cheaper cost per gigabyte than Apple's 30GB iPod while Sony players tend to be more expensive on a per gigabye basis. While Apple may have economies of scale which allow them to purchase the component parts cheaper than competitors they are not selling their iPods for less because of it.

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