By Richard Menta 5/2/07
Archos's strategy to compete with the iPod by playing to the early adopter is paying off dividends - in the US. The company reported this week that its North American sales for Q1 of this year are up 13% over last. Overall, though, the numbers for Archos are down with sales off by some 20%. Much of that drop is attributed to a change in the company's distribution model from importing their devices from Hong Kong to direct distribution from the mainland, which disrupted some sales.
Archos Sales Revenue in Euro
Also 2% of the drop reflects an infusion of $10 million from EchoStar (0.9 million Euro) that Archos booked Q1 last year. EchoStar announced it would invest in Archos back in June of 2005 and by October sold rebranded Archos players to their satellite subscribers under the PocketDisk moniker.
Archos is very optimistic regarding growth in the upcoming quarters as they push there new generatio 5 models including their flagship Archos 704 WiFi, which they released in March.
Other MP3 stories:
Hollywood Contradicts Itself on Effects of File Sharing
HD Radio Effort Undermined by Weak Tuners in Expensive Radios
The Wi-Fi Sansa Connect is available on Amazon