Will the iPhone Kill the iPod?

I'm sure some of your read that headline and said, "I sure hope so." The Red Herring has an interesting article reporting on a report from analysts Bernstein Research, who have all kinds of interesting things to say about the future market Share of the iPod, some of it a bit contradictory.
First off, the iPhone will take market share away from the iPod, but it will also fail because it's got a $300 price point – a very hard market to break in to, because most people want less expensive cell phones and Motorola and Nokia already have high-end cell phone dominance. So people will buy the iPhone and then they won't? Bernstein also thinks that the Zune and other mp3-playing competitors will go on to take more of the iPod share, in a market that's going to slow down over the next few years. The Zune I could see succeeding, because Microsoft has a history of throwing money at things they want until they succeed, but I doubt the iPod is in any danger from other competitors unless those competitors put out a product with as much money and hype behind it as the Zune.
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By Mehdi, November 25, 2006 @ 5:18 pm
Ok it’s very cool and nice.
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