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News
SanDisk to Cut MP3 Player Prices, Add New Model
Sunday, August 20th, 2006 at 3:00 PM - by Jeff Gamet
In an attempt to improve its position in the MP3 player market, SanDisk plans to reduce the price of its players and add a new model on Monday. The Wall Street Journal reports that SanDisk is cutting the price of its current line up by as much as 30 percent, and it will also introduce the Sansa e280. The new MP3 player is expected to include 8GB of Flash-memory storage at a US$250 price point - matching the price of Apple's 4GB iPod nano.
SanDisk holds a distant second place to Apple's iPod+iTunes. At a 9.7 percent marketshare, it isn't likely to make a dent in Apple's 75 percent piece of the music player pie any time soon. Its new pricing does, however, indicate that the company is ready to aggressively go after more of the market.
The reduced pricing may also be an attempt to prevent potential marketshare losses, since the Sansa players are about to face an assault on a former friendly front, too. Once Microsoft's Zune players hit store shelves, the competition for the 25 percent of the market Apple doesn't hold is likely to get bloody. Creative, Sony, Samsung, and others are all fighting for the same customers, and Microsoft's entry into the game doesn't come as good news to these companies.
Apple's iPod product line is also due for a refresh, so it's unclear how long SanDisk's e280 can claim it has higher storage for the same price as the iPod nano.
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