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. I went over to iRiver’s e-store. The cheapest player I could find with 512MB was $199.99. So, take 25% off and get $149.00.

    So, for an extra $50, I get an FM Tuner, Voice and Line-in Recording, and a screen. I also have to feed it a AA battery every 40 hours, it’s about three times as thick and a bit wider and longer. It’s also half-an-ounce heavier (1.3 vs 0.78), but that’s without the battery. Add anywhere from half-an-ounce to 2 ounces for the battery and it’s 2-4x heavier!

    Oh. And it’s ugly.

    Uh…I don’t think so. About the only thing this has that the shuffle doesn’t that I would want is the screen. (Aside: I wish Apple would add a one or two-line screen, just to show me what song is playing).

  2. What is great about this is that AAC(MP4) is becoming the standard over WMA…that is the real issue on the battlefront, and Micro$in is
    spiraling down the toilet in this area. In the future, the standard digital music format will determine everything and Apple will eventually license their DRM out to everybody and make their real money and have, yes, power over everybody else.
    I wouldn’t gripe about Micro$ins power over everybody, IF, they made the best product, but they aren’t even close. What is different about Apple is that their focus is on being the best, not the power they get from it.

  3. Just point out that Apple has said they have a 25% margin on the mini, and 20% on the shuffle. So they are by no means losing money on each sale.

    The shuffle is cheap because it has no display and none of those extra features.

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