Nokia MP3 handsets could chip at iPod market

Standard & Poor's Equity Research today said Nokia MP3 handsets could take sales from Apple's iPod in the coming quarters. The firm reiterated a "hold" rating on American depositary receipts of Nokia and raised estimates. "We expect handset competition to intensify at the mid-range and at the top end, particularly from Motorola this year and Samsung next, keeping handset prices and operating margins under continuous pressure," S&P said. Meanwhile, Motorola is expected to launch an MP3 handset next month at UK's "V Festival," an event sponsored by Virgin Mobile. Citing an analyst report, TheStreet.com reports that the "iPod-inspired music phone -- which Motorola twice pulled from introductions earlier this year, apparently under orders from Apple chief Steve Jobs -- will debut in the U.K. next month."

Apple readying refunds for Canadian iPod tax

Apple Canada will soon begin processing refunds for Canadian customers who paid tariffs for buying digital audio players. The Canadian Press reports that people who bought iPods when levies were being imposed on digital music players will soon be able to get their money back: "Apple is pleased that the Supreme Court of Canada let stand a lower court ruling that blank media levies on iPods are invalid, and will shortly announce a claims process so consumers can request a refund for the levies they paid," the statement from Apple said. At the end of July, the Supreme Court of Canada backed the Federal Court of Canada decision quashing the levy on iPods and other digital music players. The tax, which has been built-in into the price of devices sold in Canada since December 2003, was $2 for non-removable memory capacity of up to 1GB, $15 for 1GB-10GB and $25 for more than 10GB, according to the report. Apple, however, had stopped charging users the iPod tax in December 2004, following the decision of the Federal Court.

Fewer first-time MP3 buyers expected in 2006

Digital audio player adoption will reach more than 65 million by 2010, but the number of first-time buyers will decrease, according to a new research report. The Yankee Group DecisionNote foreceast indicates that MP3 manufacturers will face a shrinking market of customers new to the digital music era, as the number of first-time buyers will decrease beginning next year. "By 2010 the U.S. install base for Digital Audio Players (DAP) will reach 65.6 million.... As the total installed based of digital audio players increases, Yankee forecasts the number of first-time owners will decrease. The trend will begin in 2006 and continue to gain speed. By the end of 2007, less than half of digital audio player sales will be to first timers. The precipitous decline in new user adoption will fall to below 5 percent by 2008." According to the Yankee Group's numbers, Apple's iPod represented three-quarters of all players shipped in 2004, which the company expects Apple to maintain--due in part to its marketing and iTunes initiatives.

Creative outlook bleak as iPod runs the show

As Apple continues to build on the success of the iPod, Creative Technology's future remains uncertain. The company faces growing competition from competitors and building stockpiles of inventory, according to analysts quoted by Reuters. The report says that the maker of the Nomad and Zen MP3 players, which are designed to compete with offerings from Apple, Samsung, and Sony, will likely report a quarterly loss and write off unsold stock, after consumer demand softened and stiff competition hit margins. Creative is also facing competition from the cell phone manufacturers, such as Nokia, Oyj, and Motorola build MP3 functions into higher-end music cell phones. Despite record revenue and profits (as well as surge in stock price over the last two years) by market-leader Apple, analysts estimate that Creative's gross margin probably shrunk to below 20 percent in the June quarter, from 32.9 percent in the year-ago period, and compared with Apple's iPod margin of around 20 percent.

FID debuts irock 5.1 theater sound USB headphones

First International Digital (FID) today introduced its irock 5.1 theater sound USB headphones. They are both Mac and PC compatible and feature six speakers--each in individual sound chambers--that provide virtual surround sound for portable home theater and PC gaming applications. Light-weight and measuring 5.1 x 5.1 x 3.2 inches, the headphones provide volume adjustment for each speaker and selection from simulated effects such as Jazz, Rock, Rap, Dance and Vocal. Control for master volume, subwoofer effects--without separate drivers for Mac users. The irock 5.1 headphones connect via USB 2.0 and ship for $60 with a carrying bag and documentation CD.

New Walkman phone to compete with iPod

Sony Ericsson today announced a new addition to its Walkman phone line, the W550. Offering stereo music and integrating a 1.3 megapixel camera with full internet browsing capability, the new phone is designed to compete with Apple's iPod in the portable music player market. The W550 features 256MB of internal memory and Bluetooth connectivity; Sony also claims 30 hours of battery life; games can be played with the 1.8-inch 262K TFT display positioned horizontally. The W550 will debut early in the fourth quarter; pricing was unavailable.

Second new iTatu released

Tatuz International today announced the release of its second new iTatu design as part of the company's ongoing five-five-five promotion: five weeks, five new designs, five free iTatu. iTatus are artistic coverings that utilize mild adhesive to allow users to give their iPod shuffle a distinctive personality. The new design, dubbed "Space", is the second new design created by graphics designer Andres Conde of Digital Assault. "Space" is now available for $3.50; online orders ship within 24 hours and all orders through August 15th, will receive a free Gilda Flower iTatu.

Apple obtains iTunes domain for New Zealand

Apple has moved a step closer to launching its long-awaited iTunes online music store in New Zealand, taking over the itunes.co.nz domain name, according to The Dominion Post. The owner of the site, who previously used the domain to sell iPods via Amazon.com, reached an undisclosed deal in May to transfer the domain; the event, however, was overshadowed by last week's launch of CokeTunes, a music download site for New Zealanders set up by Coca-Cola. "In what's believed to be a first in Australasia, customers can sign up and pay for music downloads using their mobile phones, though only if they are a Telecom customer." CokeTunes offers more than half a million songs for AU$1.75 (albums are AU$18). The report notes that rumors had circulated around the launch of iTunes for Australia last May when several Australian users were able to create iTunes accounts; however, the site was not launched and the accounts were quickly shutdown.