August 22, 2006

iPod Juggernaut Claims Dell As Latest Victim

Today, multiple reports noted that Dell has withdrawn all mention of their MP3 player lineup from the company's store and site. Originally having launched the Dell DJ years ago to take on Apple's iPod, Dell retrenched behind the flash-based Dell Ditty, competing with Apple's incredibly popular iPod Shuffle offering. But it seems that they have admitted defeat and are walking away from the market altogether, removing yet another competitor from Apple's way.

But it certainly can't be as simple as that.

It's my expectation that Dell will heavily promote Microsoft's "coming zune" Zune MP3 player, either through offering it at cutthroat prices on their site, or in bundling to consumers looking for desktops and laptops. There really are only three potential scenarios:

1) Dell admits Apple has won (25% probability)
2) Dell will soon be branding the iPod themselves (5% probability)
3) Microsoft is the company's new MP3 partner (70% probability)

It will all get very interesting soon, as Microsoft threatens to muck up yet another market with their half-baked me-too offerings. They've done it before, and it won't stop them this time around either. Dell, unfortunately, may be an all-too willing partner in the war on the side of mediocrity.

Listening to ''Dirtbox'', by Dave Clarke (Play Count: 6)

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