Apple's iPod will continue to rule the mp3 market in 2006

• Piper Jaffray senior research analyst Gene Munster expects the iPod will continue to dominate in 2006, despite a growing number of MP3 devices on the market.
• The analyst maintained an "outperform" rating and a target price of $80 on Apple Computer (nasdaq: AAPL - news - people) after examining MP3 players at the Consumer Electronics Show in Las Vegas on Thursday.
• "While we found that there are several more legitimate devices out now versus what we saw at last year's CES, we still believe Apple has the market beat in form factor, intuitive user interface, and the 'cool factor,'" the analyst said in a report Friday.
• "We continue to be shocked at how Sony's devices miss the mark despite the resources that are being put into creating a competitive product," said Munster.
• Navigation is not user friendly, he said.
• The devices don't yet have a ship date for the U.S., nor are they yet priced, he added.
• SanDisk (nasdaq: SNDK - news - people) released its new line of Sansa MP3 players.
• "These devices are more intuitive than many other devices we tested and each includes some nice extra features like FM radio and microSD expansion slot" and are priced comparably to the iPod nano.
• Samsung introduced its YP-Z5 iPod competitor, which is expected to be available in February.
• "The device is slim like a nano, but has a larger screen and better battery life; that said, the nano is easier to navigate," Munster said.
• "But we do not believe iPod is the only growth avenue."
• Munster said he expects the iPod "to continue to be a foundation for growth in other parts of Apple's business, providing Apple with a greater scope of awareness."