Friday, August 26, 2005

D&M Blames It on Rio

Bloomberg reports on the demise of the Rio MP3 player after D&M Holdings decided to kill the product line and concentrate on "profitable, high-end home theater and professional audio products that sell under the Marantz and Denon brands."

The company claimed it was discontinuing the loss-making Rio line due to MP3 players becoming mass market and not matching the company's core business.

Stephen Baker at NPD Group said, "It's hard to make money in this market if you are not Apple. Now there is little barrier to anyone wanting to enter the market."