Support Our Site
Get Better Gear!
- Theodolite App for iOS is Breathtaking from Hunter Research and Technology, US$3.99 (Pro and HD versions)
- Akron’s TAB802 Table Mount For iPad Is Sturdy from Akron, US$99.95
- Dinosaurs Roar to Life on the iPad with Stephen Fry from M58959 Studios, US$14.95
- Poldera’s iKeep Holds Your iPhone Close from Poldera LLC, US$19.99
- Mediadevil’s Easyscreen Screen iPad Protector Is Unusual from Mediadevil, £16.97 (US$22.09)
Top 5 Free Apps
iTunes New Music Releases
Top 5 Paid Apps
Discover New Music
The Wall (Deluxe Packaging Digitally Remastered)
- Pink Floyd
- Okay, someone had to say it, and though others on the iPO staff are more qualified to review this album, I decided the time was now. This is the quintessential concept album. Though others came before
An Evening with George Shearing & Mel Torm�
- Mel Torm� & George Shearing
- Of the three men who taught me how to sing, the last was Mel Torme. Apparently, Mel Torme is a joke to anyone more than a decade older than me, a living parody of a Vegas crooner. But I stumbled on th
- Bauhaus
Go Away White is an album I've been waiting more than 20 years to hear, and the good news is that it was worth the wait. The latest -- and last, no...for real this time -- album from
- Depeche Mode
Oddly enough, Playing The Angel is a return to form for Depeche Mode, even though it may well be argued that they never truly deviated from their roots in their more recent offerings. In the
- The Strokes
The Strokes set the music world on fire with this 2001 album, with headlines declaring that the New York band was here to save Rock and Roll. While the band hasn't made as much of a splash since t
Reader Specials
Visit Deals On The Web for the best deals on all consumer electronics, iPods, and more!
News
Rio Drops Out of the MP3 Player Business (UPDATED)
Thursday, August 25th, 2005 at 3:00 PM - by Brad Cook
D&M Holdings Inc. on Friday announced that it will fold its MP3 player business, which the company markets under the Rio brand name. In existence since 1998, the Rio line currently includes the Rio Forge line of flash-based MP3 players and the Rio carbon series of hard drive-based devices.
The company said in a statement that it made the decision after "a determination that the mass-market portable digital audio player market was not a strong enough strategic fit with the company's core and profitable premium consumer electronics brands to warrant additional investment in the category." D&M expects to incur US$25.4 million in shutdown-related costs.
Stephen Baker, an analyst with NPD Techworld, told iPod Observer that two reasons likely drove D&M’s decision: “First, the fact that there’s only a limited pot in the market for anyone whose name doesn’t begin with ‘A’ and end with ‘e.’
“Second,” he continued, “is the business D&M is focused on. An MP3 player product line isn’t part of the bigger picture.” The company’s other businesses include ReplayTV, Denon, Marantz and other home entertainment products -- Mr. Baker noted that while the Rio is an audio product, it doesn’t really fit when compared to them.
”From a nostalgic standpoint,” he added, “[the end of the Rio] could be sad, since it was the first MP3 player. But a lot has changed since Christmas 1998.”
Mr. Baker noted that the Rio’s U.S. market share for the first half of 2005 was 2.9% overall, which broke down to 5.4% in the flash-based space and 1.2% in the hard drive-based MP3 player arena. Apple, in contrast, held 73.9% of the overall market –- 47.4% in flash and an overwhelming 91.1% in hard drive.
With such stiff competition to go up against, Mr. Baker observed: “If you don’t have a serious reason to be in this, it’s going to be tough to justify it to your shareholders.” He cited Sony and Toshiba as examples of companies that have good reasons for staying in a fight that’s currently Apple’s to lose.
”It’s hard to keep 90% of the market forever, but if they continue to keep the lion’s share of the growth, it’s possible,” Mr. Baker said of Apple.
Updated with quotes and addition information from Stephen Baker.
Recent Headlines
- Chinese Authorities Seize Apple iPads in Trademark Dispute
- AT&T Begins Process Toward Offering Shared Data
- OnLive Desktop: Windows & Office on Your iPad
- Battle Pocket Bulge With The Hint for iPhone
- Theodolite App for iOS is Breathtaking
- Forum Poll: Are You Planning on Buying a New iPad?
- Apple Highlights Siri in Two New iPhone 4S Ads















Post Your Comments