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Wed, Dec 03, 2008 - 03:57 PM EST  —  AAPL: 94.87 (+2.40, +2.6%)  |  NASDAQ: 1483.43 (+33.63, +2.32%)

More blood on Apple iPod’s Click Wheel: iRiver gives up on digital media player market
Tuesday, May 23, 2006 - 10:00 AM EST

"The IT industry is well aware that the short product life cycle and the rapid pace at which new technology comes up can drive them out of the market in the twinkling of an eye. MP3 player manufacturer Reigncom, which became famous with its iRiver hit product, just two years ago earned almost W1 trillion (US $1 billion) in annual sales but recorded its worst-ever performance this year, with only W37.9 billion in sales and W18.8 billion net losses in the first quarter," The Chosun Ilbo reports. "Established in 1999, the firm had been making remarkable strides, becoming the runaway no. 1 in the domestic MP3 player market. The iRiver was more popular among teenagers than big competitors from Samsung Electronics and LG Electronics. It also gained the status of a top-notch player in overseas markets including the U.S., Japan and China in terms of sales volume. But Apple’s Flash-type MP3 players put an end to that."

"When Apple’s MP3 player sales quadrupled to some 32 million units in 2005 alone, Reigncom responded by slashing product prices three times. At the end of last year, however, just a year and a half since it started competing with Apple in the Flash MP3 player market, some 300 or about half of its staff quit the company. Its overseas operations ground to a halt as it pulled out of most markets except for the U.S. and one or two other countries," The Chosun Ilbo reports.

Reigncom plans to refocus the company's efforts on their portable WiBro gaming console, according to the report.

Full article here.

Engadget also has more here.

MacDailyNews Take: Buh-bye, iRiver. [UPDATE: 11:55am EDT: MacDailyNews reader "Jeffrey" reminds us that somebody ought to tell Microsoft and MTV about iRiver (see: Microsoft, MTV, iRiver take on Apple). On second thought, let's see if the Redmond and Viacom geniuses can manage to figure it out on their own. At this rate, facing the Keystone Kops of Digital Media, Apple could freeze iPod+iTunes development, take a nap for the next decade, and still own the market when they wake up - although they should debut the iPhone line before grabbing their shut-eye just for safety's sake.]

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Related articles:
More blood on Apple iPod's Click Wheel: Sony's Walkman Bean is cooked - February 13, 2006
More blood on Apple iPod's Click Wheel: Dell dumps 'DJ' hard-drive MP3 player line - February 04, 2006
More blood on Apple iPod's Click Wheel: iRiver pulling out of Europe? - February 01, 2006
More blood on Apple iPod's Click Wheel: Thomson gives up on MP3 player, CE markets - December 12, 2005
More blood on Apple iPod's Click Wheel: BenQ withdraws from MP3 player markets - November 28, 2005
More blood on Apple iPod's Click Wheel: Olympus halts production of portable digital music players - November 09, 2005
More blood on Apple iPod's Click Wheel: Rio is dead - August 26, 2005
Apple's iPod has blood on its Click Wheel: Virgin Electronics is dead - March 08, 2005

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Reader Feedback: ( = registered)

May 23, 06 - 10:17 am Comment from: jay

easy come, easy go

May 23, 06 - 10:19 am Comment from: Mike

"another one bites the dust."

May 23, 06 - 10:21 am Comment from: Buckminster

This ought to send Apple's stock into the toilet today, huh?

May 23, 06 - 10:21 am Comment from: MCCFR

Probably the biggest corpse on Apple's inexorable march.

Which makes you wonder how long Creative or any of the others can last.

One side of this is that Creative will - in the short-term - pick up market share that would have gone to iRiver.

However, the long-term is surely that Creative will go as well which means that Apple will face an ever decreasing level of pressure on pricing, which is the only downside to this news I can think of.

May 23, 06 - 10:24 am Comment from: Another One 'Played Fer Sure'

When will companies realize that 'partnering' with Microsoft is a on way street?

May 23, 06 - 10:26 am Comment from: iSteve

Who exactly is left in the also-ran category? The number is shrinking quickly which will make it tough on services such as Real, Napster and URGE.

May 23, 06 - 10:31 am Comment from: Jim - the independent voter

I wonder how much $$ Steve Balmer has spent on successive mp3 players for his children. Once they die, he has to get them serviced. "I'm sorry Mr. Balmer, we don't support that item anymore!"

May 23, 06 - 10:34 am Comment from: Jim - the independent voter

Here's a quote from the article...

"Established in 1999, the firm had been making remarkable strides, becoming the runaway no. 1 in the domestic MP3 player market"

lol.... oh.. stop.. that's just too funny.

May 23, 06 - 10:37 am Comment from: Mac Ed

Cry me a iRiver.

May 23, 06 - 10:42 am Comment from: TL5

hahahaha.................next!

May 23, 06 - 10:44 am Comment from: zupchuck

I for one lament the death of a competitor. It's competition that keeps the products coming.

Somehow, I don't think Apple would be as innovative if Windows hadn't been such a competative force.

Competition means choice, choice is good. I like Apple, but they aren't the end-all-be-all of everything.

Keep in mind, Apple bought the iPod. They didn't exactly invent it. But they did nurture it well.

May 23, 06 - 10:44 am Comment from: Ray

That is a shame. I have an iRiver player and use it for high shock and impact activities because a) it is cheaper than the nano b) and it is diskless like the nano and c) IT IS compatible with iTunes. I used this device with iTunes before I had an iPod. I used iRiver's software for OS X. It supports ogg to! That is very cool.

These non-Apple MP3 device makers better jump off the M$ "MP3 players don't work with iTunes" bandwagon. It is stupid pandering to M$ and it is starting to cost them, big time. To the remaining players in the MP3 player game: Divorce M$ and claim compatability across the board. That is what will save you!!!!!! To paraphrase Tyler Durden: "Microsoft is polishing the brass the on Titanic. It's all going down!".

May 23, 06 - 10:47 am Comment from: OzzysCross101

I know that SanDisk will be around because their iDon't campaign will switch all of us "sheep" over to their WMA players. Yesiree. you heard it here first.

ha.

May 23, 06 - 10:48 am Comment from: M.X.N.T.4.1

At least I had heard of their mp3 type devices. What the hell is a WiBro? I would have thought that the portable games market would have been even harder to compete in seeing as Nintendo and to a certain extent Sony have that pretty much sewn up.

May 23, 06 - 10:49 am Comment from: FUseeK

Apple won't allow all competitors to be phased out. That would bring up anti-trust issues. No Apple will allow one or at the most two competitors to survive so there will be the illusion of choice.
Microsoft has had to do the same with Apple for years now. If it wasn't for the government Microsoft would have dealt the final blow years ago.

May 23, 06 - 10:49 am Comment from: Macaday

SANDISK - NOW do you see your future before you?

No amount of bleating and iDont'ing will stop you following this fast flowing current downstream to the toilet...

May 23, 06 - 10:49 am Comment from: Jooop

These companies just don't get it. It's not the device, it's the device plus the software plus the store that makes the iPod so successful. I couldn't imagine cursing my technologically illiterate family with a PaysForSure player from one company, a jukebox software package from another company, and a music rental service (that may or may not exist next month) from yet another company, and expect them to figure out how to make it all work together.

Plus, I'd never curse my family with the Windows box they'd need in order to use it. I love my family.

May 23, 06 - 10:49 am Comment from: Jeffrey

Isn't iRiver the player that MTV's new URGE is pushing?

Sounds about par for the course.

Introduce a program that will fail(URGE), and now the iRiver player that you were pushing gives up the ghost. I bet all of Balmer's shirts are wet with sweat.

macnn.com link to the story:

http://www.macnn.com/articles/06/05/22/wmp.11.urge.clix.review/

May 23, 06 - 10:52 am Comment from: Jim

zupchuck, what the hell are you talking about? The iPod was designed by Jon Ive & crew.

Have you been drinking Enderle's kool-aid?

May 23, 06 - 10:53 am Comment from: Connor MacBook

Didn't iRiver just release the Clix?

May 23, 06 - 10:56 am Comment from: HYPE HYPE HYPE!

Everything is overpriced.
Who the f*ck pays 99 cents for a rotten cucumber?

May 23, 06 - 11:00 am Comment from: Rob Enderle

Correction: MICROSOFT designed the original iPod.

May 23, 06 - 11:02 am Comment from: Wha

@ zupchuck re: "Keep in mind, Apple bought the iPod. They didn't exactly invent it. But they did nurture it well."

Your wording creeps me. Apple DID buy the bits and pieces from other manufacturers, but Apple invented the iPod. (When my child creates a painting the credit doesn't go out to Crayola and the Meade paper company.) Apple has a patent on the scroll wheel. They may not have manufactured it, but they did come up with the concept. Apple initially won the portable mp3 player market IMHO with the small form-factor hard drives that in the beginning were only available to them. And, ofcourse the innovative yet simple scroll wheel also put them on top. What Apple created with all the outsourced parts is simply amazing. My iPod is the my #1 favorite material possession.

May 23, 06 - 11:02 am Comment from: Big Al

Zupchuck,

Apple bought the concept, redesigned the hardware and redesigned and rewrote the software. Mediocre in insanely great out. I think Apple can claim the G1 iPod as their own.

May 23, 06 - 11:05 am Comment from: Macaday

I was just reading this at CNet http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/05/22/BUG7BIU1T61.DTL

It struck me that all the PC boys are really out to try and move away from iPod. And the only reason can be their fear factor of iPod owners then switching to Mac.

And then their number one iPod contender gives up the ghost?

Ho ho ho. What arseholes...better rewrite your crappo article quick CNet.

May 23, 06 - 11:06 am Comment from: William

Yes, cry me an iRiver.

May 23, 06 - 11:11 am Comment from: stocks are for losers.

people who gamble mess around with stocks, smart guys are busy doing real business with their money.

May 23, 06 - 11:12 am Comment from: EmiratesMac

I don't have any musical talent, but I tried putting some words to "Moon River", fitting in with this occasion:
http://www.emiratesmac.com/home/p2_articleid/443

May 23, 06 - 11:13 am Comment from: donnie

like it or not, competition is good. it forces constant innovation.

if apple kills off any more competitors, they'll be (gasp)another microsoft in the digital media player market.

oh, the irony.

May 23, 06 - 11:20 am Comment from: Carlo

iPisser. reminds me of needing to take a slash in the middle of the night after too many beers.

May 23, 06 - 11:24 am Comment from: Pat

Ugh. Need to read the history of Apple and the arrogance that lead them to sit on their lead in the 80s and early 90s. In MDN's sentence "On second thought, let's see if the Redmond and Viacom geniuses can manage to figure it out on their own. At this rate, facing the Keystone Kops of Digital Media, Apple could freeze iPod+iTunes development, take a nap for the next decade, and still own the market when they wake up", subsitute the original Mac for iPod+iTunes and you have history repeating itself. Remember when Windows 95 came out and we mac fans consoled ourselves with 'been there -done that" while Apple slipped into a death-spiral. Remember the Wired cover with the Apple logo encircled with barbed wire and the simple title "Pray". Let's not have more talk of nap-taking and incompetence of our competitors.

May 23, 06 - 11:31 am Comment from: incomplete truth

iRiver gives up on digital media player market except the US market and one or two others.

So, the death call for iRiver MP3 players is a bit early. Yes, they got bloodied, but they are still in the ring (or more appropriately, its corner). I think they'd be out of it by the end of this year. MS + MTV + iRiver is just the last gasp of air.

May 23, 06 - 11:45 am Comment from: Matrix3

Jeffrey:
--------
I was thinking the same thing. I remember reading somewhere that iRiver was part of the triple play (not) with MS and MTV to dethrone Apple.

I couldn't find the article, but I remeber reading it somewhere.



Incomplete truth:
----------------
The US market has the greatest penetration of iPod, I would think if they were in it to stay they would stay in the Asian market where iPod isn't as dominate. Sounds like they are just fulfilling their contract agreement to continue in the US until the term ends.

May 23, 06 - 11:46 am Comment from: Jooop

Need to read the history of Apple and the arrogance that lead them to sit on their lead in the 80s and early 90s

Isn't it interesting that Apple started to stagnate and blow chunks when Jobs wasn't around, and stopped sucking the instant he returned?

The difference beween the late 80s and early 90s is one word: Jobs. As long as he's alive, we don't have to fear any stagnation from Apple.

I am terrified, however, to think about what would happen to my stock if he just keeled over and died.

I hope he puts Jonathan Ive in charge of the company.

May 23, 06 - 12:11 pm Comment from: LordRobin

I know I shouldn't feel good about this, honest, I'm ashamed... Nevertheless, I can't help but feel a twitter of glee at all the arrogant iRiver-pushing a-holes on Slashdot and what they must be feeling right now.

There is a serious cult surrounding iRiver players that is just as serious as that of iPod, if smaller and less rational. iRiver devotees will tell you with a straight face that their players are much easier to use than an iPod, and that they have managed to "convert" friends and co-workers.

Unfortunately, I've never met one of these guys myself, but I've read their posts on Slashdot and my wife worked with one. I'd love to ask one how anything can be easier to use than an iPod, when there isn't anything remotely difficult about using an iPod!

May 23, 06 - 12:32 pm Comment from: Lazy European

The also-rans dying off one at a time leave an ever growing space for the One Big iPod Killer.
Maybe a Microsoft player that's compatible with both iTunes and others. That would be smart.

May 23, 06 - 12:37 pm Comment from: Grifterus

I love Apple products. I love Apple's innovation.

But, I don't like when a company doing things by the book, and being a fair competitor has to close.

I don't blame Apple. They just played it right. It's a complete different feeling I have for Microsoft doing muscleing out competitors by unethical or even illegal -read Netscape- means.

So, I would say, it's sad to see that. Competition drives innovation. There should always be space for one more, even when I personally will prefer an Apple product.

So, I think what we shoud, say is, good bye, iRiver, and THANK YOU for giving it a shot.

May 23, 06 - 12:44 pm Comment from: rasterbator

Next on the Hit List:
Sansa e200

baa-aaa

May 23, 06 - 01:38 pm Comment from: Mr. Peabody

Again, until consumers decide they want MS's world domination to cease, we're going to continue to see these weird winner-takes-all sorts of computer related product markets continue. When one company has it all, literally (and legally), it rarely is good for the dominating company. Competition is healthy. I want Apple to continue its growth, but I also want to ensure that its products remain first class in terms of quality.

I hope a few (besides MS) continue to beat a path to some kind of acceptable success.

May 23, 06 - 02:07 pm Comment from: TimD

iRiver has gone down the swanny.

May 23, 06 - 03:30 pm Comment from: Nick

...sad for iRiver, but I totally agree with Lord Robin that iRiver fans were a serious pain in the butt. Remember the ad for iRiver with Jenna Jamisson in it? Talk about desperation...

May 23, 06 - 06:01 pm Comment from: zupchuck

To Jim, et al:

Ives did the exterior design. PortaPlayer did the original design. Try reading a little history:

http://www.wired.com/news/mac/0,2125,64286,00.html

Also recall, iTunes was originally a SoundJam product.

So, in typical fashion, Apple took the components and melded them into a wonderful product. But give credit where it is due - to the non-Apple people who conceived the products and sold Apple on them.

Maybe "mediorcre in", but keep in mind the two primary minds behind the HW and SW were hired by Apple and completed their efforts to "insanely great out".

May 23, 06 - 07:20 pm Comment from: TO: Jim the voter

"Here's a quote from the article...

"Established in 1999, the firm had been making remarkable strides, becoming the runaway no. 1 in the domestic MP3 player market"

lol.... oh.. stop.. that's just too funny."

What is so funny about that? The article is from a Korean newspaper, and iRiver is made by a Korean co. So, DOMESTIC, means KOREAN in this context, AND the iPod wasn't released until 2001.

May 23, 06 - 07:38 pm Comment from: IPodluvr

R.I.P. i.R.iver.. Like many of the wintel hegemony, Creative got away with half-baked products in the past by riding M$ coat tails. All the while pointing at little apple over there in their little orchard... I'm beginning to understand Mr. Waltberg's 'post PC era' comment. There's a new kid in town punks, and he hits hard.

May 23, 06 - 08:09 pm Comment from: iPodluvr

Waltberg? D'oh... Sorry Mr. Mossberg, lol...And Yeah I'm talking smack, I really don't know what you're saying there at all, but what the heck?

May 23, 06 - 08:35 pm Comment from: Freeze

Oh my. It appears that all the sheep being herded by Apple's iPod, according to SanDisk, have all stampeded iRiver.

Baaa.

May 23, 06 - 09:53 pm Comment from: Static Mesh

THERE CAN ONLY BE ONE!!!

*fancy electrical storm commences*

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