“Piper Jaffray research analyst Gene Munster maintained an ‘outperform’ rating and $79 price target on Apple Computer after examining the MP3 player competitive landscape and concluding that comparable players could not compete with the iPod,” Maya Roney reports for Forbes.
“‘While non-iPod devices often have similar, if not broader (for example: an FM tuner), feature sets than the iPod, none of these devices have shown that they can compete in two key areas: user interface and ‘cool’ factor,’ said the analyst,” Roney reports. “Munster believes non-iPod devices must compete on price to gain adoption, but the massive relative shipment volume of the iPod prevents other MP3 player manufacturers from replicating the economies of scale achieved by Apple, allowing the company to continue sell iPods at the lowest prices in the market.”
Full article here.
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