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Microsoft (NASDAQ: MSFT) will begin selling newer versions of its Zune digital media player as of today at national retailers like Best Buy (NYSE: BBY) and Wal-Mart (NYSE: WMT). The world's largest software company will, again, try to compete head-to-head with Apple (NASDAQ: AAPL)'s iPods, current the planet's most popular line of digital media players.In addition to replacing the original Zune player with a newer, sleeker unit, Microsoft's releasing the slimmer Zune player in 4GB and 8GB capacities to compete more directly with Apple's most popular iPod product, the iPod nano. After five years, is the world tiring of the iPod and seeking another, equally capable device with more features and an online media store to boot? Many would answer "yes" to that question, and that's the market Microsoft wants to recruit to this new line of Zune devices.
Although Microsoft has only sold 1.2 million Zunes in its history, compared to Apple's 100 million+ iPods over five years, these newer Zune players can wirelessly and automatically update their music, photos and videos when placed near a user's computer. Add an FM radio on top of that and you have the similar capability to the newer iPod Touch, but at a much lower price (albeit without the touchy-feely interface).
I don't see Microsoft folding in the portable media player market anytime soon, so these newer Zunes may in fact sell very well this holiday season, now that they're not the size of a small aircraft.
[Disclosure: I own MSFT shares as of 11-13-07]
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Reader Comments (Page 1 of 1)
11-13-2007 @ 4:23PM
benoir said...
yawn.... another so-called ipod killer.
if only the ipod would generate some real innovation from others instead of this endless barrage of lackluster devices.
the zune is pobably okay but why would you bother?
11-13-2007 @ 5:55PM
dtahiti said...
What a dishonest comparison : Microsoft has made prducts to compete with the iPod Nano - Zune 4GB/8G B or the iPod classic 30GB/80GB. Against the real products MS try to compete with, the price are the same.
MS packs more features (as any iPod competitors have been doing), but they have always lacked the iPod interface - and that has been always that with iPods. So come on ! Comparing with the iPod Touch and say the Zune is cheaper : wow - you should be ashamed !
At least you're honest enough to say that you own some MS stocks.