Sony walkman outsells iPod for first time in 4 yrs

Sony Corp’s Walkman digital music player outsold Apple Inc’s iPod in Japan last week for the first time in more than four years, according to electronics research firm BCN Inc.

The Japanese company’s share of portable music players sold climbed to 43 per cent in the week ended August 30, exceeding Apple’s 42.1 per cent, ending the lead that the iPod maker had kept since January 2005, the Tokyo-based researcher said in a statement on Wednesday. The iPhone also cannibalised iPod sales, according to BCN, which didn’t count the iPhone in the survey because the product is also a wireless handset.

Sony, whose Walkman cassette players pioneered the portable-music industry in the late 1970s, gained market share after introducing models including the W series of cordless players that sell for under 10,000 yen ($108). Sony in July raised its sales forecast for the devices. IPod prices in Japan range from 8,800 yen for the shuffle to 47,800 yen for the 32- gigabyte touch model, according to the Apple Store.

“Sony has gained customers seeking less expensive products and those seeking high quality by broadening its lineup,” Kazuharu Miura, an analyst with Daiwa Institute of Research Ltd, said by telephone today. “But you can’t really say Sony regained its competitiveness against Apple unless it improves its market share in the US and Europe.”

Sony fell 1 per cent to close at 2,430 yen on the Tokyo Stock Exchange, trimming its gain this year to 26 per cent. Japan’s benchmark Nikkei 225 Stock Average dropped 0.6 per cent. Apple, based in Cupertino, California, closed 0.1 per cent lower at $165.18 on the Nasdaq Stock Market on Wednesday.

Sony on July 30 lifted its sales forecast for digital music players to 6.7 million units for the year ending March 2010 from its May estimate of 6.3 million. That compares with 7 million sold in the previous year.

Sales of portable music players in Japan fell by 13.5 per cent in August from a year earlier, a fifth straight month of decline, according to BCN. New products by Sony or Apple are expected to revitalise the stagnant market, the researcher said in the statement.

Apple may introduce new iPod models at its “rock and roll” event on September 9, helping the company regain its share, the researcher said.