F.4C Sarah Fung (11) Karen Lam (17)
Rivals challenge iPod's dominance
Apple's iPod may be the flavor of the month, but there are better and cheaper choices, says a
computing magazine.
In a test of 18 digital music players available in the UK, PC Pro found the iPod lacking in
comparison with other devices.
The iPod is the most popular digital music player in the world and almost three million have
been sold.
"The iPod and iPod Mini are the two best known portable MP3 players because Apple has
pumped money into a huge marketing campaign, but there are some fantastic lesser-known
alternatives," said Nick Ross, PC Pro senior writer.
MP3 appeal
In just the first three months of the year, Apple sold 807,000 iPods, a 909% rise on the same
period a year ago.
The latest and smallest version, the iPod Mini, has proved so popular in the US since its
introduction in January that its international release has had to be put back until the end of July.
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The success of the iPod has helped to increase the popularity and appeal of digital music
players and consumers face a bewildering choice of devices.
This month's issue of PC Pro magazine looked at 18 portable MP3 players and concluded that
there were several lesser-known brands that noticeably outperformed the iPod.
"The price of iPod has slightly increased over the period and it is over-priced when compared
with these competitors," said Mr Ross.
"It also falls down on battery life, with some portable MP3 players lasting three times as long,
while its lack of support for Windows Media files will upset many PC users."
Disk drive shortage
Apple declined to comment on the magazine report.
The California-based company is betting on the iPod mini to help maintain its position at the
top of the MP3 player market.
It is facing stiff competition from others like Dell, Digital Networks, Creative Labs and Archos
which are seeking to challenge that dominance.
But there is good news for music fans still waiting to get their hands on an iPod Mini.
Hitachi, which makes the 4GB disk drive for the player, has said it is going to spend about $200
million (£113.4m) to double production at its Thailand factory.
It means that the six-week waiting list for the iPod Mini is likely to get shorter by the end of the
year.
Summary of news:
The news article is about the most popular music player in the world, Apple’s iPod, which might face
keen competition with other devices produced by other companies. At present stage, Apple’s iPod could
still increase its revenue with the help of huge promotion and by offering different versions of iPods.
However, a commentator said that Apple may face a fall in sales due to its over-priced iPods while its
competitors like Hitachi are planning to boost its sales by doubling its supply.
Explanation:
1. As people’s taste is affected by the great promotion of iPod (huge marketing campaign), even if the
price of iPod is constant, people’s demand for iPod increases (D1→D2) due to taste change.
2. When the price of iPod increases, quantity demanded of iPod decreases. However, under inelastic
demand, percentage increase in price is greater than the percentage decreases in quantity
demanded, gain in revenue is greater than the loss in revenue. Hence, revenue increases (909% rise).
3. Since the iPod lacks support for the Windows Media files and falls down on
battery life, these upsets the PC users of using the iPod. Demand for iPods may
decrease (D2←D1) because of its limitation.
4. Since Hitachi and iPod are substitutes, the increase in supply of Hitachi music
player (S1→S2) would lead to a fall in price of its music players. This will
increase the quantity demanded for Hitachi music players as price drops.
Demand for iPods will then decrease (D1→D2).