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One size does not fit all.
In *my* ideal world we'd have a variety of options, each optimized to your basic needs.
The current world isn't far off.
Need a player for jogging or working out? get a flash-based player; 1Gb models for $100 are around the corner. ($150, today)
Want something compact that will hold a few hundred CDs worth of music? 1" drive models are getting decent capacities and ever-lower prices.
Want something pocketable that will hold *all* your music? Preferably in lossless or near-lossless format? Soon, real soon...
Want a full-range media player? Meet the PMC...
Want a cell-phone that plays music? Already here.
Want to use a PDA instead? Happened 5 years ago...
Look to the PDA world where there is ample variety; with bluetooth or with wi-fi; with both, with neither...
Camera? ditto.
Size, resolution, speed, take your pick...
Want a PDA with a HD? Stick it in!
I expect we'll see all these permutations and more.
Players combined with cellphones for those that want that, players with wi-fi for home networks or direct d/l's at hotspots, players with color screens and even touch screens...
Even players that play commercial games as well as passive content.
All coming to the electronics shop near you.
What we will *not* see is any single product with more than 20% market share. That is just not going to happen. Digital music playback is a cheap feature to implement and there are simply too many ways in which people listen to music...
Fragmentation, not consolidation, is what's coming...
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