SanDisk Confident About Taking Market Share Away from Apple

Sandisk to push the "more for your money" angle
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SanDisk is taking a strategy similar to the one Hyundai is using now to gain traction in the North American market — add more feature and undercut your more visible rivals in price. SanDisk is already the No. 2 seller of portable audio players behind Apple (a distant second I might add), but it wants an even bigger slice of the pie.

Apple’s iPod has long dominated the portable audio scene, but Eric Bone, Sandisk’s director of consumer products marketing feels that Sandisk can eat into Apple’s core with better products. To do this, Sandisk is pushing the value angle. The company is touting such features as voice recording and an FM tuner to set it apart from the iPod. Not only that, the company also plans to undercut the iPod by at least $20 for a comparable music player.

Bone even goes as far as to say that not many retailers are at all happy with stocking iPods due to their razor slim profit margins. “However, they continue to stock Apple products because they know it’s a good leader and that brings traffic. They can sell other add-on products on which they make their margin,” said Bone.

I can attest to Bone’s comments on retailer recouping their margins on accessories — I found myself staring at a $39.95 price tag on a USB dock/cradle for my 5G iPod this past Saturday. I quickly put it back on the shelf.

I’m quite sure that Sandisk will have success with its new flash-based C100 and C200 series players, but the company still doesn’t have an answer for Apple’s 30GB and 60GB 5G iPods.

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