Nevertheless, there is an increasing trend of integrating MP3 technology together with other technologies in one single electronic device. Hence, there is a legitimate threat that mobile phones (such as the iPhone) or PDAs, which include an MP3 player, will substitute a part of the current MP3 player market...
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Some parts, however, are shorter in supply (e.g. the micro drive) in which case suppliers have a higher bargaining power. In General, suppliers have much less bargaining power when dealing with market leader Apple compared to the numerous smaller manufacturers. Bargaining power of buyers (retailers & distributors): The MP3 player market is currently a “sellers market”...
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