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Taiwan market: With iPod nano on its way, distributors figure “why bother competing” with lesser known products

Jimmy Hsu, Taipei
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Distributors of non-branded MP3 players in Taiwan will either temporarily withdraw those products from the market or decrease supply to avoid competing head-to-head with the popular iPod nano when the Apple Computer NAND flash-based MP3 player first hits the Taiwan market, according to sources in the local retail channel.

The vendors of no brand MP3 players estimate that the iPod nano will be a hot selling product for the first two to three months it hits the local Taiwan market, so they figure it is better to minimize the market presence of no brand products at first, the source stated. The vendors plan to resume marketing the no brand MP3 players in late December, a traditional peak period for IT and consumer electronics in Taiwan.

A large portion of the no brand MP3 players are made in China, with the remainder produced by small makers in Taiwan, and distributors do not think these products can compete with the iPod nano at first, the sources pointed out.

In related news, SanDisk’s Taiwan sales agent Princeton Technology C&C denied the rumor that SanDisk will decrease its global MP3 player business. SanDisk will offer MP3 players equipped with value-added functions, such as recording and language-learning, Princeton Technology emphasized.

Article translated by Adam Hwang and edited by Michael McManus