Archos Takes Aim at Zune and iPod with Wi-Fi-Enabled Portable Media Player

Strategic Insights -

In a move to remain competitive in the growing portable media player market, Paris-based Archos has introduced the first fully Wi-Fi-enabled portable media player, the Archos 604. With the rise of Microsoft's Zune and Apple's iPod, Archos is looking to carve out its own niche with a device that allows users to surf the Web, check their e-mail, and use instant messaging, features that the Zune does not offer despite having Wi-Fi capabilities. Archos also claims that its device can stream content wirelessly from the computer to the TV and has a touch screen, setting it apart from other devices on the market.

Key Takeaways:

  • Archos has introduced the first fully Wi-Fi-enabled portable media player, the Archos 604, which allows users to surf the Web, check their e-mail, and use instant messaging.
  • The device also has a touch screen and can stream content wirelessly from the computer to the TV.
  • Archos claims that its device is the only one that offers full Wi-Fi capabilities, whereas the Zune uses Wi-Fi only to connect to nearby Zunes for sharing music files.
  • Sony's Mylo, a Wi-Fi-enabled messaging device, was launched in September and has been selling well, but Archos sees its 604 as a true portable media player.
  • Archos has a deal with Echostar to supply a device that allows users to copy videos from their DVRs and play them back "on-the-move."
  • MusicGremlin has launched a wireless digital music service and an audio player with built-in Wi-Fi, offering users unlimited access to on-demand music, commercial-free programming, and the ability to share music with friends.
  • The first Gremlin model has an 8GB hard disk that holds about 2,000 songs and comes with MusicGremlin's music service, built in partnership with MusicNet.
  • Sony claims that Mylo is not intended for the media player market, but rather as a Wi-Fi messaging device with Google, Skype, and Yahoo functionality.

Statistics:

  • Archos revenues for the first three quarters of 2006 totaled 80.6 million € ($103 million), a 46% increase over the same period last year.
  • The company expects its annual growth to be about the same as the first three quarters, putting annual revenue at about $120 million.
  • MusicGremlin's subscription service offers unlimited access to on-demand music, commercial-free programming, and the ability to share music with friends.
  • The first Gremlin model has an 8GB hard disk that holds about 2,000 songs.

Sources:

  • "Archos Signs Deal with Alcatel for Mobile TV" - The Online Reporter
  • "Archos Introduces First Wi-Fi-Enabled Portable Media Player" - The Online Reporter
  • "Sony's Mylo: A Wi-Fi Messaging Device" - The Online Reporter
  • "MusicGremlin: A Wireless Digital Music Service" - The Online Reporter
  • "Archos Revenue for 2006 Totaled 80.6 Million €" - The Online Reporter