iRiver bows to Apple’s iPod shuffle, slashes MP3 flash-based player prices up to 25 percent

“Korean electronics makers are lowering the prices of their digital music players to compete with the increasing popularity of Apple Computer Inc.’s iPod on the local market. ReignCom Ltd., Korea’s largest MP3 player maker, slashed the price tag on its best-selling iRiver flash-memory type models by 20 to 25 percent last week and said it will extend the cuts to foreign markets next month,” Kim Tong-hyung reports for The Korean Herald. “Another ReignCom official admitted that the price cuts could have a negative effect on ReignCom’s operating profit during the first quarter.”

Full article here.

20 Comments

  1. Apple makes a healthy profit on most of their gear, which allows them to make other items at little or no profit (iTMS, mac mini, iPod Shuffle) lets see who can keep up as Apple expands into more and more markets which many places for growth and profit ^_^

  2. G-Money, that was funny. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    As we have learned from other companies, cutting the price is not always the key.

  3. so selling the players below cost may have a negative effect on profits? Isn’t that dot com bubble econ 101?

    Interesting that the first move in Creatives audio jihad is RETREAT!!!

    MDN magic word = learned, as in you think they would have by now

  4. If Apple can “Pimp Slap” Dell around in Digital Music, what made these people think they were something special.
    BTW-
    “Plays for Sure” =IT WON”T WORK ON AN iPod.

  5. ReignCom Ltd. slashing prices on their best-selling players = cutting into their profits. Not a smart move.

    Reminds me of Napster losing money on music downloads by selling them for $0.49 in order to ‘compete’ with the ITMS. Or what about BuyMusic.com? Flushed several million $$$ trying to launch that sorry ‘service’. Boneheads.

    It’s sad, really. They can’t come up with anything really innovative, so they just try to compete on price. Sounds like some of Apple’s *other* competitors. Hey ReignCom, see ya ’round.

  6. Another possibility: Apple has been known to dump excess inventory in Costco. Maybe this means they’re trying to dump the last of their iPod minis.

    Next week, Apple will sell iPod minis in 5GB ($199) and 10GB ($249).

    Just a thought….

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