But flash memory is also becoming available in those sizes. The iPod mini and rivals with similar size players use hard drives from Hitachi, Cornice and others. The 4GB to 5GB player is an area where the battle between flash and hard drive is likely to be most intense, as flash prices come down and capacities go up. Hard drives are seen as keeping a large share of the market though as customers seek to accomplish additional tasks with their players. But as flash capacities have grown, the company now has its eye on the flash market, an area where it will compete against chipmakers such as SigmaTel, which is rumored to be powering the flash iPod. PortalPlayer, whose chip powers the iPod, has historically focused only on the hard-drive market. "With that, in terms of just the economics, it's going to help get the prices down." "We're finally seeing individual flash devices now at the 8 gigabit (1GB) density, which is starting to get pretty significant," said Michael Maia, co-founder and vice president at Portal Player. One challenge for Apple may reflect the words of the company's own CEO, Steve Jobs, who has characterized the current market for flash-based players as made up largely of products people get as gifts and never use.īut the landscape may be shifting, thanks in large part to memory becoming available at lower prices and in higher capacities. Looking ahead to next year, Neff forecasts Apple may be able to grab 30 percent of the 34 million players that market researcher IDC estimates will sell next year.
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