Wednesday, January 25, 2006

R.I.P. Dell DJ


In September '05 I wrote:
"...Since apple is selling their iPods at a higher volume than all their competitors...they could really put the smack down on competitors by selling iPods at a discount and absolutely flatten the competition...Apple could move millions of units at a thinner margin which would force Rio, Creative, and Dell into a very tight spot; letting them choose between moving hundreds of thousands of units at razor-thin margins or maintaining pricing while watching unit sales slide towards zero.
... Apple has now lowered the boom on the competition with the nano. Look at the competitions' products at $199 or $249. Sony and the others have to be sweating bullets. Their products at those price points are very simply, a cut below."

Since I wrote that, Apple sold 14 million iPods in about 3 months. All their competitors combined sold (by my estimation) sold around 5 million units. There had to be casualties. Rio has apparently exited the mp3 player market and Dell has suddenly and unceremoniously apparently stopped selling DJs.