Cramer: Yahoo and SanDisk combo is no ‘iPod killer’

Apple Store“Yahoo!’s next to fall on its music sword with this new music device, the Sansa Connect. The downloading of music wirelessly, something that Microsoft does too, will make a splash as still one more tech company tries to overthrow Apple,” Jim Cramer writes for RealMoney. “It will have similar results as all the other challengers. Why?”

Cramer writes, “The morning paper gives you the best reason why. Check out this one for irony. On the front page of The Wall Street Journal’s B section, the headline is simple: ‘A New Wireless Player Hopes to Challenge iPod.'”

“That’s all well and good. Yahoo!’s got a big installed base. SanDisk, its partner, has some clout,” Cramer writes. “But then turn to the back page. You will see something that tells you about the success, or lack thereof, of this new venture: A heart made up of iPods and two lines — ‘100 million iPods sold. Thanks to music lovers everywhere.'”

Cramer writes, “It’s called ‘installed base.’ It tells you all you need to know about where Yahoo! stands, which is nowhere.”

Full article here.

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33 Comments

  1. “Connect” …?

    Since that name worked so well for Sony.

    (When I wrote a very similar post, comparing Best Buy’s projected Apple store-within-a-store to CompUSA’s, I got called a “dumbass.” I hope this new comparison holds up to my forum-mate Leader’s high standards for intellectual discourse.)

  2. In order to stand any chance of competing with Apple their competitors have to do a number of things. They have to work like the iPod and iTunes do and be consistent, constantly changing partners and stores is good for no-one, they have to be cheaper and they have to do more but without complicating the device. I don’t see anyone doing that. I love Apple and love the iPod but that’s not to say I wouldn’t welcome some genuine, viable alternatives.

  3. Umm,

    Just because we’re not all geeks and Unix doesn’t run our very existence it doesn’t mean we’re dumbasses, it just means we have a life outside of computers. Gee, and I thought the common denominator of this site was a love for all things macs. I must’ve been mistaken.

    MDN word: doubt as in No Doubt. I miss that band already.

  4. The Sansa Connect device is now a toss-up in value – not a price-based leader. $249 can get you wifi but 1/2 the storage of an iPod nano for the same price…

    This spells huge trouble for SanDisk.

    The Sansa players have won against the iPod in the small “will not use iPod here” crowd, as it wins on price, and SanDisk providing their own memory is the reason why.

    Now look at the Sansa device.
    1. For a flash drive, it is clunky as an 80 GB ipod video.
    2. It carries a larger screen
    3. It has wifi
    4. No one knows the battery life, and their site does not say either…

    SanDisk is moving their devices into areas they do not own the technology – larger screens, larger battery, casing, wifi. This is paramount against SanDisk’s cause because they do not have the buying power for Apple (AKA Economies of Scale) to compete at Apple’s price points once they get away from the simple flash player whose main cost is the memory (which they can control in price).

    Yahoo needs to make some money, the labels of course, and so does Redmond with their licensing scheme – oh, and so does SanDisk. Four hands in the cookie jar, and the pricing reflects everyone dipping in, from player to the $144 a year subscription fee.

    Apple has only one other to split the pie with – the content providers, and that is it. As these devices grow in abilities, Apple has the huge upper hand in controlling the technology they use, along with leveraging their HW economies of scale, which no one can compete with.

    The Sansa will have a quick spike in loyal user purchases, but soon die on a vine due to price. This fall, SanDisk, Creative, Zune, Sony and others will suffer their biggest blow yet with the new lineup of iPods and iTunes Mobile.

  5. [I]Why do people spell the word ‘owned’ with a ‘p’ as opposed to an ‘o’?[/I]

    In gaming, to trounce an opponent totally and completely. Pronounced “pwen,” “pawn” or “pun,” the derivation of the term is obscure. Some believe it came from a misspelling of “own,” which means to defeat an opponent. To be “pwned” means to be defeated unmercifully.

    Why do people spell the word fsck with an ‘s’ for the vowel to read fsck?

    See description in earlier post above, it’s used instead of f-u-c-k to bypass profanity filters.

    Here is a good site that can answer your tech related terminology questions.

    http://www.techweb.com/encyclopedia/defineterm.jhtml?term=pwn

    …teach a man how to fish… ” width=”19″ height=”19″ alt=”raspberry” style=”border:0;” />

  6. You know…someday the iPod will cease to be the big man on campus. In fact, it will cease to exist at all at some point. Like all technology, it has a shelf life. Long ago it was the record, then the tape, CD…and now a non-physical form of media.

    What’s after this current non-physical media? You cannot have iPods forever…

  7. @NeverFade – it’s because fsck is a lot nicer way to write it than with a “u”. It’s like saying “shoot” instead of sh1t. (It also doesn’t get caught in “bad-language” filters as easily.

    I don’t know about “pwned” however. And obviously neither does “umm”, who also seems to have his panties in a twist about something today.

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