Apple has taken the music player fight to the home of Taiwanese MP3 player makers, launching iPod nano to hungry crowds there.

The company has already forced some local vendors to cut prices, with 200 manufacturers in China being force to shut up shop, a recent report claims.

And now, huge queues greeted the iPod nano's official Taiwan launch last Sunday, a local report claims.

"Hordes of fans lined up as early as 9am to be able to have the chance to purchase one of a limited number of Apple's latest MP3 music player, the iPod Nano, which went on sale at 3:30pm," the Taipei Times tells.

The complete consignment of the new music players were sold that day in at least one leading Taiwanese store.

Apple is massacring local competitors on price. The report reveals that 1GB music player in Taiwan cost around NT$8,000 (£140). Apple's 4GB iPod nano costs just NT$8,600 (£147), while its 2GB model is NT$6,900 (£120). (Currency calculations are approximate.)

"iPod fever is expected to sweep through Taiwan's market over the next two years, driven by the product's exquisite looks, user-friendly interface, mini size and large storage", the report relates.