Dell has cut the price of its digital music player in what Reuters suggests is an attempt to compete with Apple's iPod.

The price of the15GB version of Dell's Digital Jukebox was cut from $249 to $199. The 20GB version has been reduced from $299 to $279.

Apple's 15GB costs $299 – $100 more than Dell's equivalent. The 20GB costs $399 – saving Dell customers $120.

According to market research firm NPD Group, Apple has the largest part of the digital music player market – it shipped 32 per cent of the music players in February. Reuters adds that this data does not include Dell because its products are sold only over the Internet.

Jupiter Research analyst Avi Greengart doesn’t think the price reduction is a result of poor sales. He told Reuters: "My understanding is that they're selling pretty well they've taken a nice part of the market. This is not a fire sale."