Samsung and Intel: DigitalWay's Mpio MPIO is a flash memory and PC-interface based multi-function audio player. It can be used for playing mp3 files, voice recording, an electronic telephone and memo book, and a unique feature of using it as a digital camera. After connecting a digital camera with Mpio, the user can use Mpio's flash memory to store digital photos. It can also be used as a normal CCD camera when connected to PC. The size is as small as a cigarette case. DigitalWay is also developing Samsung's Yepp, due to DMBKorea's bankcrupcy. (the original company that was developing Yepp with Samsung). The player is said to be ready in approximately February 1999 and will be priced around 120 US dollars.
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Intel and Samsung:
South Korean OEM deals for MP3 players on the rise South Korea’s share of global MP3 player manufacturing may rise above 50% as Intel, Compaq, Sonicblue and other large international manufacturers team up with local OEMs (original equipment manufacturers).
Intel with Samsung Electronics Having entered the market in early 2001, Intel plans to work with Samsung Electronics on its first digital-audio player, the Pocket Concert, which features 128MB of built-in memory and an FM wide-band tuner and supports the MP3 and Windows Media Audio (WMA) standards. The company is preparing to ship samples in the near future and start production in the second half of 2001.
Compaq with Eiger M&C and Samsung Electronics Compaq has launched its iPAQ Personal Audio Player (PA-1), co-developed with South Korea’s Eiger M&C and produced by Samsung Electronics.
Sonicblue and others Santa Clara, CA-based Sonicblue, the world’s largest MP3 player manufacturer, is in talks with OEMs in South Korea and China. It intends to outsource a significant portion of its production to South Korean companies.
Japan-based Akai and Aiwa, Germany’s Teac, RFC of Singapore and others are also partnering with South Korean OEMs.
South Korean industry insiders noted that even for companies making their own-brand MP3 players, it is hard to resist large OEM orders (100,000-200,000 units). However, the entry barriers are low and South Korean manufacturers already make more than 70% of their own MP3 player components. It would be a shame if the companies do not launch their own higher-margin brands but instead rely on OEM orders to increase revenues.
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