SanDisk slashes MP3 player prices by 25% to better compete with Apple

GristyMcFisty used our news submit to tell us the following regarding Sandisk's plans to try to make its Sansa line more tempting than Apple:

To counter the price-cutting strategy from rival Apple, SanDisk announced on September 21 that it is cutting prices of its Sansa e200-series MP3 players by as much as 25%.

SanDisk decided to partner with RealNetworks and Rhapsody to market its competing music offerings.  While such a deal has potential due to the lower cost making the Sansa enticing, it is unclear how well such agreements with RealNetworks and especially Rhapsody will benefit the company.  Given the fact Rhapsody was once called 'AudioGalaxy' and was more popular then than now (given then it was free and now it is a subscriber service), unless Rhapsody greatly expands its offerings and attracts many more customers, Rhapsody could prove the Achilles heel for Sansa.  Anyone in the U.S. has seen Best Buy circulars that usually feature so many 'free' Rhapsody downloads or a certain free period to use the service.  Users generally complained before of how limited Rhapsody's music titles became, and how little it had to offer in comparison to its former glory days.  While only an assumption, it is possible that Rhapsody is about in the same shape as Napster, which is also looking to reclaim its former base.  Given the recent "no-DRM" label Yahoo music landed, it is a shame that SanDisk does not appear to have pursued the Yahoo music angle, opting for cultivating a relationship which might be far more lucrative because of not having DRM with songs.  One thing is certain:  with Apple still seeming to have no marketing answer for clear future iPod directions, at least SanDisk's timing in this sense is very good, and cutting prices will get consumers interested.  However, as with all things, only time will tell how well Sansa's player and partnerships prove in helping it chip away at the iPod market share.

Source: DigiTimes

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