iPod 'will dominate MP3 market' this Christmas

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The iPod will continue to dominate the MP3 player market, despite the launch of the Microsoft Zune, according to analysts.

While Microsoft expects to sell one million devices between now and June, Apple will sell 25 times that amount with its iPod range.

Ross Rubin, director of market research firm NPD, told Netmusic Countdown: "It would take an unprecedented act of nature for the Zune to outsell the iPod this holiday season."

Tim Deal of Pike & Fischer added that while the Zune's wireless-sharing feature "differentiates" it from the iPod, it will take time for the group to build up a consumer base.

Meanwhile, Microsoft is launching an advertising campaign including television, outdoor, print and online adverts and promotions, aimed at 18 to 28-year-olds.

Mr Rubin commented that the group is right to concentrate on distancing itself from the market leader instead of competing with the same features.

© 2006 Adfero Ltd

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