Tuesday, October 25, 2005

iPod Faces Stiff Competition in Crowded Video Market

Playlist writes that the Apple video iPod is playing catch up against video players from other vendors, such as Archos, Creative, and iRiver.

Ross Rubin at NPD Group said, "I think the most important thing to keep in mind is that what Apple did was take one of its most popular models, the 20 GB iPod—in many ways the flagship product—and forget video for a moment, basically they kept it at the same price added 50 percent more storage, a better screen and made it thinner. Certainly millions of customers are going to buy this product regardless of whether they have any intent to use the video features, and so because of that [Apple is] going to become the leader in the video player market."

However, for consumers looking for specifically for a portable video player, Rubin said, “Let’s say they do care and are buying a product with video features, then it becomes a far more competitive field. Someone who’s looking particularly for video might be willing to accept a somewhat larger form factor than what the iPod with video offers, and in terms of a feature basis they’re probably a little behind. But they were on the music front too."