“Korean MP3 player makers are miffed by the release of a new product by world market leader Apple that they say is cutting corners by using Samsung Electronics flash memory chips,” The Chosun Ilbo reports. “Apple Computer unveiled its ultra-lightweight iPod nano flash memory player on Thursday (local time). The U.S. company holds 50 percent of the global market share with its iPod series.”

“The iPod nano can store up to 1,000 songs or 4 GB, the biggest storage capacity yet for a flash memory player. The new MP3 players cost US$249 for the 4 GB version and $199 for 2 GB, about half the price of existing products,” The Chosun Ilbo reports. “‘Memory chips affect more than 50 percent of MP3 players’ prices. Apple presumably bought the flash memory chips at a 50 percent discount from Samsung.’ But Samsung Electronics executive Joo Woo-sik defends the company. ‘I can’t tell you the discount rate, but it stands to reason that we expand the range of discount rates for a big buyer like Apple,’ he said. ‘Samsung didn’t mean to do any harm to domestic MP3 manufacturers.’”

The Chosun Ilbo reports, “Reigncom [iriver] spokesman Kim Dong-hwan said, ‘We can hardly declare a price war with Apple. We’ll counter Apple’s challenge by releasing new concept products.’”

Full article here.

Advertisement: Apple iPod nano. 1,000 songs. Impossibly small. From $199. Free shipping.
Why not try competing with Apple iPod based upon variety of third-party accessories? They’ll have about as much chance of success with that idea as with any other. The more you buy, the less you pay; that’s why iriver and the rest of the also-rans can’t do what Apple has done with pricing: not nearly enough people want their products.

Related articles:
Mossberg: Apple iPod nano ‘beautiful, incredibly thin, and exceeds Apple’s performance specs’ – September 08, 2005
Over 1,000 accessories now available for Apple iPod – September 07, 2005
Apple’s iPod nano will make competitors whimper, Motorola’s ROKR inexplicably bland – September 07, 2005
Tech pundit Enderle: ‘iPod Nano is a hit,’ Motorola ROKR ‘simply doesn’t have enough Apple in it’ – September 07, 2005
Jupiter analyst Gartenberg: ‘the market is going to go for Apple iPod nano in a big way’ – September 07, 2005
Analyst: iPod nano ‘could be Apple’s next home run’ – September 07, 2005
Video of Steve Jobs introducing iPod nano, ROKR iTunes phone now available online – September 07, 2005
Apple’s Steve Jobs predicts ultra-thin iPod nano ‘will become the highest volume iPod in the world’ – September 07, 2005
Apple introduces iPod nano – September 07, 2005
Apple’s iPod nano will make competitors whimper, Motorola’s ROKR inexplicably bland – September 07, 2005
Apple stomps competitors in flash-based MP3 player market – September 02, 2005
Analyst expects 3-6 million 4GB flash-based Apple iPod mini units to ship in second half 2005 – August 25, 2005
Apple to switch 4GB iPod mini from hard-drive to flash-based? – August 22, 2005
Apple’s iPod shuffle takes nearly 60 percent of US flash-player market in March – May 04, 2005