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August 24th, 2005, 10:37 GMT · By Alina Plesu

Apple Threatened With Serious Competition

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Although late to the market, both Samsung and Sony are taking aggressive steps to challenge Apple by targeting the many consumers that do not own a digital music device yet.

"Only 11% percent of the U.S. population owns an MP3 player" according to Peter Weedfald, Senior Vice president of consumer electronics sales and marketing for Samsung. Which obviously leaves "plenty of opportunity to capture market share".

For now, Apple holds 80% percent of the MP3 player market
and 75% of online music sales.

Well, the numbers situation is quite sad for competitors, but it also generates extreme determination.

Samsung has made public its intentions to take 10% of the market this year and aims to global leadership by 2007. The company has had its share of successful moves on the mobile market since its 2002 camera phone launch, taking with 13% the third position in the industry, behind Nokia and Motorola. But still, even a company representative speaking off the record admitted that's pretty unlikely for such a breakthrough to happen in such a short time.

Sony is also making moves with even a better chance than Samsung's, if we come to think that it is in the position to offer an integrated device and retail service with the same brand, similar to Apple's iPod/iTunes combo.
If last year Sony launched a single MP3 device, this year it already has 10 of them available on sale, which granted the company the first position on MP3 sales list in Japan, ahead of Apple. And there are better chances to improve as Sony is expected to relaunch its failed Connect digital music store.

Nonetheless, any competition will have to come out with some great and revolutionary products to take over the place elegant and efficient iPod has earned for itself.

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