This week: iTunes competition, iPod accessories...

This week saw the debut of three new threats to Apple's dominance of the digital music market. iRiver's new T line of subscription-capable music players, SBC Yahoo's debut of its new online music service, and SIRIUS offering up a portable satellite radio signal the beginning of a fierce holiday sales race.... iTunes also came under pressure this week, with Yahoo Japan offering free song previews on any of 100,000 songs offered in an attempt to counter Apple's online music store. News of a serious mistake didn't help matters either, iTunes Japan sold albums for just 50 yen each, instead of the intended 1,500-yen price.... Fans of podcasting rejoiced this week, as new software by Pod2Mod enables mobile phone owners to play podcasts on mobile handsets, and Apple launched its Podcast Directory service in Taiwan.

iSkin rolls out dual-layer iPod shuffle protector

iSkin today announced the availability of its Shuffle Duo, the World's first dual-layer protective skin covering engineered specifically for Apple's iPod shuffle. The iSkin's moisture resistant design is made of durable, flexible and long-lasting high-grade silicone and leaves all control buttons accessible for easy access and uninterrupted playtime. The Duo's form-fitting, contoured design is available in four distinct colors: ADRENALINE (a vitalizing outer blue layer combined with an energizing inner green layer), VIGOR (a intense red outer layer with a frosted clear inner layer), OXYGEN (a refreshing frosted clear outer and inner layer) and IMPULSE (a strong grey with a frosted clear inner layer). The new iSkin also features an integrated headphone port cover and includes a high quality custom neck strap and is available for $20.

Samsung move sparks Flash iPod mini speculation

The success of Apple's flash-based iPod shuffle has prompted Samsung to offer Apple a deep discount with the promise of dedicating 40 percent of its flash-memory manufacturing capacity to seal the deal. The most likely reason that Apple would want to boost its buying of NAND flash, says BusinessWeek, is for a new version of the iPod. Rumors have been circulating that a Flash-based iPod mini (or similar device) may be in the works. "One of the biggest criticisms of the iPod Shuffle, successful as it has been, is that it doesn't have a display screen that lets users see what song is playing. A more expensive player using flash memory boasting capacities of 2 gigabytes to 4 gigabytes -- and which includes a display screen -- might make sense from a cost standpoint." Apple may less obvious plans as well. "They may be using all this flash memory for something else," speculates Tim Bajarin.

Apple may ship 7.1 million iPods in Sept. quarter

American Technology Research analyst Shaw Wu believes Apple will sell 7.1 million iPods in the current quarter, according to a report by Macworld UK. The figure for the company's fourth fiscal quarter, which ends in September, represent signficant sequential growth from previous June quarter in which the company sold 6,155,000 iPods: the figure is up 15 percent from the previous quarter, but the analyst said that the average selling prices of iPods may come under greater than expected pressuress. The research firm cites recent "aggressive" pricing and other 4GB iPod mini promotions--an effort to clear out existing high inventory levels--and a reported Apple-Samsung deal for substantial amounts of flash memory in the coming quarters as evidence of upcoming flash memory-based iPod mini. The analyst maintained a 'hold' on Apple stock with a price target of $42.

Judge approves iPod battery settlement

Apple should have made customers aware of battery limitations on first three iPod models, a San Mateo County judge ruled Thursday. Because the company failed to do so, it must replace as many as 1.3 million iPod batteries belonging to owners of first, second, and third generation iPods. Under the settlement, which has now received final approval, those users who already paid Apple to replace their iPod's failing battery are entitled to up to half of that cost back. Steve Williams, lead counsel for the suit that people who bought iPod's first two models are entitled to either $25 cash or a $50 credit at the Apple Store. Owner of iPod's third model are entitled to free replacement battery if the battery fails. Consumers have up to May 2006 to file a claim to be entitled to the settlement. Based on the number of people continuing to make claims, the settlement has a minimum value of approximately $15 million.