“Shares in Samsung Electronics and other Asian makers of memory chips dipped Wednesday after Apple Computer cut the price of its digital audio players. The price cut apparently fanned fears of steeper price declines in chips used in the products,” Reuters reports. “Apple, which uses NAND flash memory chips in its digital audio players, cut the price of its cheapest model, the iPod Shuffle, on Tuesday and launched a smaller-capacity version of its mid-priced iPod Nano.”
“It also cast shadow over smaller makers of MP3 music players, struggling in a fiercely competitive market dominated by Apple,” Reuters reports. “Analysts and company officials say Apple’s smaller rivals such as Singapore’s Creative Technology and South Korea’s Reigncom will have to follow suit to stay competitive. ‘Apple’s price cut will deepen competition in the U.S. market and other makers will have to lower prices to survive,’ said Donald Kim, a spokesman at Reigncom, the maker of iRiver MP3 players. Creative, which makes Nomad and Zen MP3 players, and Samsung Electronics, which sells Yepp players, declined to comment. ‘We believe Creative would have no choice but to follow Apple’s example and cut prices on their MP3 players,’ said CIMB-GK Securities analyst Jonathan Ng.”
Full article here.
[Thanks to MacDailyNews reader “NeverFade” for sending the link.]
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