Will the iPhone Kill the iPod?

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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