Thursday, September 15, 2005

Early iPod nano Sales Soft, Creative Challenge Looms

Initial sales of the newly-released iPod nano appear to be soft, according to some retail reports. American Technology Research analyst Shaw Wu has pointed some disappointing early sales at various Apple retail outlets, though it may be difficult to draw a larger trend so early in the cycle. Specifically, Wu noted that many Apple stores were moving between 200 and 500 units, far below original allocations of between 1,800 and 2,500 units. “We believe iPod nano may cause sticker shock as consumers are not getting more storage for their dollar as they are accustomed to,” Wu asserted. “We may be alone at this point, but we believe matching the super success of the iPod mini may be a tough act for iPod nano to follow without some changes.” Still, other sources report rather heavy demand, at least anecdotally, and the product has only been in the marketplace for less than 10 days. Hard data from Apple has not yet surfaced.

For many portable MP3 consumers, Apple is the only game in town, leaving a long list of competitors off the radar entirely. But one competitor is becoming increasing agitated by Apple, and could pursue legal action. Creative Technologies, a Singaporean company, actually released a device known as the Zen Nano Plus several months ago, though it is unclear just what legal action, if any, will be taken in the coming months. But the company did point to a patent on the portable MP3 player interface, which predated similar filings made by both Apple and Microsoft. That could lead to a patent infringement case in the future, though so far the company indicated that it would be weighing its options. The iPod nano hit stores in the US on September 7th.

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