Major Taiwanese MP3 player firms iRiver and BenQ have cut prices in response to Apple's iPod nano.

DigiTimes reports that iRiver Taiwan has cut 13 per cent off the cost of its U10 music player (to NT$9,990), while BenQ has sliced a tithe (10 per cent, NT$2,690) from its 512MB flash-based player.

Another local vendor, Micro-Star International has joined suit, as the companies prepare for a price war with Apple in the market.