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Tuesday, 15 February 2005
Samsung in Desperate Bid for MP3 Clout
Chosun Ilbo - South Korea

Samsung Electronics is driving itself crazy with MP3 players, churning out products on an almost weekly basis in a desperate bid for recognition as a world leader in the field.

In the U.S., the birthplace of HDD MP3 players, the company has issued a challenge to Apple while introducing to markets its W900,000 (US$870) diamond-studded luxury MP3 players.

Explanations vary, but the most common is that the MP3 market's future looks bright while the popularity of MP3 players among the young -- future consumers -- could help improve Samsung's corporate image. The domestic MP3 market grew from 800,000 units in 2003 to 1.8 million units in 2004, and is expected to total 2.5 million units this year. The global market is expected to grow from last year's 20 million units to over 30 million this year.

Others say that as more consumers buy MP3 players, the challenge of developing all-in-one portable digital devices allowing users to play games, watch movies and receive broadcasts in an age of "convergence" may have provided another motivation.

But the background to Samsung's MP3 frenzy is best summarized in one word: pride.

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Last Updated ( Thursday, 17 February 2005 )
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