In just the past two weeks, the price of MP3 devices in South Korea has dropped by as much as 30%. Lee Soo-min, a representative of Apple in the country, stated that this is a global phenomenon, not limited to South Korea alone.
The iPod Nano primarily impacts flash memory products ranging from 1 GB to 4 GB. Apple’s latest music player is priced at approximately $220 for the 2 GB model and $280 for the 4 GB model, significantly lower than competing devices with similar storage capacity. This price reduction is partly due to Samsung Electronics providing memory chips to Apple at special rates.
The 2 GB YP-T8QB MP3 device from Samsung has decreased in price from $366 to around $320 since mid-September, while the Reigncom T20 1 GB model (from South Korea) is currently sold online for $200, down $6 from two weeks ago.
However, music device manufacturers have indicated that they are not lowering product prices; rather, this is a decision made by distributors to clear out inventory.
Price pressures in this market are expected to intensify with the second release of the iPod Nano from the U.S. set to arrive in South Korea next week. Since September 26, a total of 10,000 Nano products have been sold in the country, and the order list remains quite lengthy.
P.T. (according to Korea Times)
