GenDigital

SanDisk's Sansa Is Cool But Won't Make Waves

Not since the days of the Walkman in the 80s has a consumer electronics device had such a broad impact on youth lifestyle. Of course, I am referring to the iPod for today's generation of techno savvy tweens, teeens and young adults. Although there has been a few competitors to step up and offer alternative devices (and downloading services) none to date have really made a dent in the market. Nationally, I believe, but don't quote me on it, that iPods have about a 75% share of the portable digital music player market. Among tweens, teens and college students that number is even higher at 88%. So, if you were a device maker or corresponding downloading service, you'd better come up with something pretty compelling, right? Well, I don't believe that is even the case anymore. With what I would consider to be rave reviews, the SanDisk Sansa is out on the market but even with its great capabilities compared to its cost (it actually does a few things an iPod cannot) it hasn't (and probably never will) caught on with the youth market. Why, simply put, it could be the greatest thing next to slice bread, but it doesn't have an Apple logo on it. Apple's overall perception among the youth market right now puts it right up there with perennial leader Nike and the maker of the Razr, Motorola. Compare that to five or so years ago before the iPod craze...Apple wasn't even on the list. The takeaway: no matter how great a competitive offering might be, the perception always comes back to the market, and based on the current environment, no one will be swaying their perceptions anytime soon.

Samsung Releases New MP3 Player

Samsung has released a new 4GB $249 MP3 player called the YP-K5 that received a decent review from Business Week. Borrowing a few characteristics and brand equity of the market leading iPod, the YP-K5 seems to have some pretty cool features and the packaging and accessories to go along with it, but I highly doubt it will be able to take any tangible share away from Apple since it doesn't have a USB port or Mac compatibility. Note to Samsung, for starters, you might want to try and come up with a cooler sounding name instead of YP-K5.

Sony Unveils E-Book Reader

After a couple of hiccups, yesterday Sony finally unveiled its new e-book reader device to the media. The initial reviews that have come out so far have been extremely positive. You might wonder why we're even covering this topic. Well, there is somewhat of a paradigm shift taking place in the secondary school and collegiate textbook market. One of the biggest complaints received from college administrators (only because they hear it non stop from students and their parents) is the cost of textbooks, which we estimate is a $2.5 billion business just among college students. More colleges and high schools are looking for alternatives and the given the state of digital technology and Gen Y's extreme comfort factor, alternatives like e-books seem to make some sense. With the release of their new e-book reader yesterday, Sony has set itself up to quickly become a market leader in a category that should grow by at least 20% this year and next year. The big challenge will not come from the school administrators or students in our opinion, it will come from the book publishers themselves, who by some accounts, have been slow to embrace e-book technology as an additional distribution platform for their textbook offerings.

A Coming Out Party For Microsoft's Zune

Yesterday was a coming out party of sorts for Microsoft's new portable digital music player called the Zune. Some of the details still remain sketchy like the actual release date (other than knowing it will be out before the holidays, but technically that could be December 20th) and the expected retail price (MSFT confirmed pricing for Zune) would be competitive with the iPod). But really, the interesting news coming out of Redmond yesterday was the wireless sharing capabilities of the Zune player. Essentially, users will be able to wirelessly deliver songs to other users also using a Zune player. You figure if you're going up against an 800 lb. gorilla who has a 75% share of the full market and a 90% share of the Gen Y market, you better come out with something extremely cool and it better be of substantial value. Now, I wonder if this sharing capability is just that thing that could propel MSFT and Zune to capture a share of purchasers this holiday season.

Apple Makes Bold Move Into Consumer Electronics Market

Ten years from now, technology writers and historians might reference Steve Jobs as the leader of the first company that transformed itself from a computer maker into a digital entertainment company. Yesterday's much anticipated speech from Mr. Jobs had tech market pundits and analysts guessing what would be his now trademarked "last thing" to talk about. As it turns out, Mr. Jobs and Apple plan to introduce a new device that will marry the family Mac to the family television. The new product, called iTV, is not due out until early next year, so they will miss the 4th quarter holiday shopping season. The $299 device which is about the size of a small book, plugs into the television and wirelessly pulls in content from the family Mac. Given the rich entertainment value proposition of the new Macs, expect Apple to emphasize the transfer of music, video and other images for all to enjoy on the family's 42 inch plasma.

Sony Has Collegiate Aspirations For Mylo

Sony might be the first company to create its own fraternity of college students, or as Ad Age so cleverly says "thumb-ternity." The number one consumer electronics brand among college students is out with a new $350 wi-fi communications product called "Mylo," short for my life online that specifically targets the technologically savvy college student market. As growing number of campuses offer students wi-fi connectivity, Sony looks to play on student's infatuation with non-stop communication by pitching Mylo which offers students an alternative wi-fi connection instead of using a notebook computer. The Mylo looks a little bit like the Sony PSP, but it has a slide-out keyboard and also comes with a built-in Skype phone and software. The web site promoting the Mylo, rushmylo.com will go live later this month. College students that visit the site can "pledge" to become a member of the Sony "thumb-ternity." Skeptics say it might be tough to get students to shell out $350 on yet another device to carry in their pockets, while optimists think the usability and flexibility of Mylo should outweigh any fears of carrying an additional device around campus. Guess will know pretty quickly this fall as students head back to campus as to who wins.

Microsoft Readies Portable Digital Music Player

Several years ago, Microsoft decided there was a void in the gaming system market and decided to take on Sony and Nintendo with the creation of Xbox. Now it seems, Microsoft has plans to enter the portable digital music player category and take on the category killer in Apple. Company execs said the Microsoft player will be available in stores in time for the holiday season. The player will have wireless Internet capabilities, a feature not currently found in the iPod, but I'd imagine something that Jobs & Co. will be releasing sooner rather than later. It is kind of funny if you think about it. Microsoft is to operating systems as Apple is to portable digital music devices, both completely dominate their respective cores. Granted, Microsoft is sitting on billions upon billions in cash and needs to put its money to work, but I would have thought something in the wireless telecommunications area might have been more strategic. Oh well, that's why I am not a equity analyst or a strategic planner at Microsoft. Best of luck, you'll need it. The company did not release any further details on pricing, as soon as I know, I will post about it.

More Kids Stock Up on Consumer Electronics

Research giant NPD is out with their latest study on kids and consumer electronics and the results are eye opening to say the least. Households with children under the age of 14 are more likely to have a desktop computer than a television and their kids are more likely to personally own a video game system than a television. The study goes on to say twice as many kids owned personal music devices and digital cameras in 2005 and cell phone ownership among kids 4 to 14 has increased by 50% since last year. I would imagine these numbers will continue to rise with release of next generation gaming systems from Sony and Nintendo as well as new entry level-priced digital cameras.

The First Legitimate Challenge To The iPod?

I got an email this morning from the Senior Vice President of Marketing for Samsung introducing their new portable digital music player. After going through the site, I have to admit, I was pretty impressed, especially with the 35 hour battery life. I guess the real questions is, regardless of how cool and impressive the device may be, at this point, can anything stop the iPod?