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by Macworld staff
Macworld Daily News - UK
July 15, 2005
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The name iPod has become synonymous with
the music player market.
Solutions Research Group's Kaan Yigit told the Financial Post that:
"The iPod is the Kleenex of the category".
This means the product has developed consumer mind share to the extent
that when people discuss music players they automatically turn to the
name iPod to help them describe what they are talking about. "What
the iPod has in spades is a super-high cool factor," the report
states.
It draws comparisons between eBay, Amazon and others for firms whose
product has become synonymous with the experience. It also warns that
such an advantage can be lost, as Sony lost the personal audio industry
advantage it once held within its Walkman brand.
Apple partners profit on da ‘Pod
Apple's third-party suppliers continue to draw benefit from the iconic
product.
For example, analysts at Credit Suisse First Boston (CSFB) this week
repeated their assessment that iPod manufacturing partner PortalPlayer
will outperform its peers.
"PortalPlayer remains well positioned in 2005 with a significant
unit growth opportunity in hard-disk-drive-based media players."
This advice was based on CSFB's belief that Apple shipped four million
iPods in the period. Exceeding expectations, Apple this week revealed
it shipped in excess of six million iPods in the period.
Apple’s summer smackdown
CSFB expect significant moves ahead: "Apple hinted at innovative
music products ahead, which we continue to believe will arrive in late
August/early September as a high-end flash player and significantly
boost PortalPlayer's second-half revenue opportunity," they wrote.
Apple's Far East suppliers are also experiencing benefits from the product's
success, particularly flash memory manufacturers.
A report on DigiTimes states that such manufacturers are "feeling
bullish", with demand for their products driving to beyond supply
levels.
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