Chris Seybold of Apple Matters a web site that tracks the Apple market daily writes. There are a million iPod killers floating around. Some feature more capapcity, some feature more gizmos, and some feature lower price points. None of the iPod killers are actually doing any iPod killing because they're too busy trying to be more iPodish than the iPod.
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Even with the consistent lack of success the iPod wannabees have had, there are still plenty of companies willing to make iPod knockoffs. Some of the manufacturers labor under the delusion that the next iteration of their player will dethrone Apple. The more rational mp3 player producers are intent on scooping up the lion's share of the crumbs left by the market dominating iPod. For all the bluster and imitation the competition has consistently failed to dent the iTunes/iPod stranglehold, few expect that to change. Why has every attempt failed so miserably? Because if you are truly desirous to do to the iPod what Windows did to the command line there's only one company who can pull it off. Their name is Microsoft and it is only a matter of time until they make a serious effort. At least, that is Steve Jobs' take on the situation as evidenced by the following quote:
The problem is, the PC model doesn't work in the consumer electronics industry, where you've got all these companies and some does one thing and another does another thing. It just doesn't work. What's going to happen is that Microsoft is going to have to get into the hardware business of making MP3 players. This year. X-player, or whatever.
Mr. Jobs' logic is transparent. He reasons that since iTunes and the iPod use the vertical integration model that Microsoft could use the same tactic to finally relegate the iPod to the technical trash bin. In theory, the system would work as follows: Microsoft would bundle a music playing program with every PC that, of course, pointed to an iTunes like music store. The model would be completed when people buy a Microsoft produced digital audio player. Consumers, being the lazy slugs they are, would take the path of least resistance. Inevitably, iPod marginalization would ensue.