“The IT industry is well aware that the short product life cycle and the rapid pace at which new technology comes up can drive them out of the market in the twinkling of an eye. MP3 player manufacturer Reigncom, which became famous with its iRiver hit product, just two years ago earned almost W1 trillion (US $1 billion) in annual sales but recorded its worst-ever performance this year, with only W37.9 billion in sales and W18.8 billion net losses in the first quarter,” The Chosun Ilbo reports. “Established in 1999, the firm had been making remarkable strides, becoming the runaway no. 1 in the domestic MP3 player market. The iRiver was more popular among teenagers than big competitors from Samsung Electronics and LG Electronics. It also gained the status of a top-notch player in overseas markets including the U.S., Japan and China in terms of sales volume. But Apple’s Flash-type MP3 players put an end to that.”
“When Apple’s MP3 player sales quadrupled to some 32 million units in 2005 alone, Reigncom responded by slashing product prices three times. At the end of last year, however, just a year and a half since it started competing with Apple in the Flash MP3 player market, some 300 or about half of its staff quit the company. Its overseas operations ground to a halt as it pulled out of most markets except for the U.S. and one or two other countries,” The Chosun Ilbo reports.
Reigncom plans to refocus the company’s efforts on their portable WiBro gaming console, according to the report.
Full article here.
Engadget also has more here.
MacDailyNews Take: Buh-bye, iRiver. [UPDATE: 11:55am EDT: MacDailyNews reader “Jeffrey” reminds us that somebody ought to tell Microsoft and MTV about iRiver (see: Microsoft, MTV, iRiver take on Apple). On second thought, let’s see if the Redmond and Viacom geniuses can manage to figure it out on their own. At this rate, facing the Keystone Kops of Digital Media, Apple could freeze iPod+iTunes development, take a nap for the next decade, and still own the market when they wake up – although they should debut the iPhone line before grabbing their shut-eye just for safety’s sake.]
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easy come, easy go
“another one bites the dust.”
This ought to send Apple’s stock into the toilet today, huh?
Probably the biggest corpse on Apple’s inexorable march.
Which makes you wonder how long Creative or any of the others can last.
One side of this is that Creative will – in the short-term – pick up market share that would have gone to iRiver.
However, the long-term is surely that Creative will go as well which means that Apple will face an ever decreasing level of pressure on pricing, which is the only downside to this news I can think of.
When will companies realize that ‘partnering’ with Microsoft is a on way street?
Who exactly is left in the also-ran category? The number is shrinking quickly which will make it tough on services such as Real, Napster and URGE.
I wonder how much $$ Steve Balmer has spent on successive mp3 players for his children. Once they die, he has to get them serviced. “I’m sorry Mr. Balmer, we don’t support that item anymore!”
Here’s a quote from the article…
“Established in 1999, the firm had been making remarkable strides, becoming the runaway no. 1 in the domestic MP3 player market”
lol…. oh.. stop.. that’s just too funny.
Cry me a iRiver.
hahahaha……………..next!
I for one lament the death of a competitor. It’s competition that keeps the products coming.
Somehow, I don’t think Apple would be as innovative if Windows hadn’t been such a competative force.
Competition means choice, choice is good. I like Apple, but they aren’t the end-all-be-all of everything.
Keep in mind, Apple bought the iPod. They didn’t exactly invent it. But they did nurture it well.
That is a shame. I have an iRiver player and use it for high shock and impact activities because a) it is cheaper than the nano b) and it is diskless like the nano and c) IT IS compatible with iTunes. I used this device with iTunes before I had an iPod. I used iRiver’s software for OS X. It supports ogg to! That is very cool.
These non-Apple MP3 device makers better jump off the M$ “MP3 players don’t work with iTunes” bandwagon. It is stupid pandering to M$ and it is starting to cost them, big time. To the remaining players in the MP3 player game: Divorce M$ and claim compatability across the board. That is what will save you!!!!!! To paraphrase Tyler Durden: “Microsoft is polishing the brass the on Titanic. It’s all going down!”.
I know that SanDisk will be around because their iDon’t campaign will switch all of us “sheep” over to their WMA players. Yesiree. you heard it here first.
ha.
At least I had heard of their mp3 type devices. What the hell is a WiBro? I would have thought that the portable games market would have been even harder to compete in seeing as Nintendo and to a certain extent Sony have that pretty much sewn up.
Apple won’t allow all competitors to be phased out. That would bring up anti-trust issues. No Apple will allow one or at the most two competitors to survive so there will be the illusion of choice.
Microsoft has had to do the same with Apple for years now. If it wasn’t for the government Microsoft would have dealt the final blow years ago.
SANDISK – NOW do you see your future before you?
No amount of bleating and iDont’ing will stop you following this fast flowing current downstream to the toilet…
These companies just don’t get it. It’s not the device, it’s the device plus the software plus the store that makes the iPod so successful. I couldn’t imagine cursing my technologically illiterate family with a PaysForSure player from one company, a jukebox software package from another company, and a music rental service (that may or may not exist next month) from yet another company, and expect them to figure out how to make it all work together.
Plus, I’d never curse my family with the Windows box they’d need in order to use it. I love my family.
Isn’t iRiver the player that MTV’s new URGE is pushing?
Sounds about par for the course.
Introduce a program that will fail(URGE), and now the iRiver player that you were pushing gives up the ghost. I bet all of Balmer’s shirts are wet with sweat.
macnn.com link to the story:
http://www.macnn.com/articles/06/05/22/wmp.11.urge.clix.review/
zupchuck, what the hell are you talking about? The iPod was designed by Jon Ive & crew.
Have you been drinking Enderle’s kool-aid?
Didn’t iRiver just release the Clix?
Everything is overpriced.
Who the f*ck pays 99 cents for a rotten cucumber?
Correction: MICROSOFT designed the original iPod.
@ zupchuck re: “Keep in mind, Apple bought the iPod. They didn’t exactly invent it. But they did nurture it well.”
Your wording creeps me. Apple DID buy the bits and pieces from other manufacturers, but Apple invented the iPod. (When my child creates a painting the credit doesn’t go out to Crayola and the Meade paper company.) Apple has a patent on the scroll wheel. They may not have manufactured it, but they did come up with the concept. Apple initially won the portable mp3 player market IMHO with the small form-factor hard drives that in the beginning were only available to them. And, ofcourse the innovative yet simple scroll wheel also put them on top. What Apple created with all the outsourced parts is simply amazing. My iPod is the my #1 favorite material possession.
Zupchuck,
Apple bought the concept, redesigned the hardware and redesigned and rewrote the software. Mediocre in insanely great out. I think Apple can claim the G1 iPod as their own.
I was just reading this at CNet http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/05/22/BUG7BIU1T61.DTL
It struck me that all the PC boys are really out to try and move away from iPod. And the only reason can be their fear factor of iPod owners then switching to Mac.
And then their number one iPod contender gives up the ghost?
Ho ho ho. What arseholes…better rewrite your crappo article quick CNet.