Apple faces more competition

Nokia and SanDisk have sounded Apple with what might be the biggest competition for Apple iProducts. Nokia with its dominance in the mobile phone market is not taking it easy after Apple unleashed its iPhone into the market.In almost direct retaliation , Nokia takes a dig into the Apple Store/itunes model with its own OVI platform.

-- Nokia would be charging €uro 1 for a song a €uro 10 for an album. This is higher than what iTunes already charges its customer.The direction that Nokia are taking might be right , but their pricing strategy might just be the weak link.The file format (WMV) could also be a deterrent for people used to MP3 consoles.

Sandisk on the other hand launched the Sansa Clip which would be in direct competition to the iPod Shuffle. The clip also comes with a FM radio , voice recorder and a display. Sandisk has however priced this product at just the right price with a 1GB model priced at $40 and a 2GB model priced at $60.

Nokia and Sandisk both have their advantages in bringing the competition to Apple's doorstep. Nokia being the largest mobile phone manufacturer already has a huge customer base for their products and added functionalities like these help in retaining the customers. Nokia with its Nseries phone ( the N95 in particular) has already demonstrated the ability to create smart phones like the iPhone. With iPhone receiving a lot of flak for having a single service provider (AT&T) and not letting people unlock their phones, It might be the right time for Nokia to enter into the US market - where they do not have a major presence.

Sandisk being in the flash memory business already will find it easier to cope with pricing issues , if Apple decides to fight the pricing war.Sandisk has the advatage of being a leader in flash memory technology and being a respected brand and it also has a decent market share in the music player segment ( although it comes nowhere near the cult status of iPod).

These are interesting times for the technology industry and everyone is eagerly waiting for Apple's next move. The September 5 iPod event in Sanfrancisco should be an interesting one.

Update Sony brings in more competition to the Ipod. Check out this article about the new Sony Walkman on Utility Belt.