Analyst: Microsoft partners zune to be the biggest losers

“Microsoft Corp.’s plans to sell a portable media player is likely to steal market share in the short term from partners iRiver, Creative and others, not iPod-creator Apple Computer Inc., experts say,” Antone Gonsalves reports for TechWeb.

“The Redmond, Wash., company on Friday said it planned to sell this year hardware and software under the brand name Zune that would compete with Apple’s iPod and iTunes. In entering the market, Microsoft has shown its displeasure with Apple’s continued dominance of the digital player market. Experts say the Cupertino, Calif., computer maker’s iPod accounts for more than two thirds of the players sold worldwide,” Gonsalves reports.

“The biggest losers initially, however, are expected to be iRiver, Creative and other device manufacturers that have failed to deliver a player using Microsoft’s media platform that can compete with the iPod,” Gonsalves reports.

Gonsalves reports, “‘If Microsoft is successful, the expectation is that it will initially hurt existing partners more than Apple,’ Joe Wilcox, analyst for JupiterResearch, said Monday. Michael Gartenberg, another JupiterResearch analyst, agreed, saying Microsoft is unlikely to find many disgruntled iPod users. ‘We certainly haven’t seen a whole lot of complaints from that quarter,’ Gartenberg said. ‘When you have such a dominant position as Apple, it usually means you’ve done something right.'”

Full article here.
Amazing. Who’da thunk Microsoft’s “partners” could actually become even bigger losers?

Related articles:
Does ‘Alexandria’ video show Microsoft’s Apple ‘iTunes killer? – July 25, 2006
In wake of Zune, Microsoft ‘partners’ consider abandoning PlaysForSure – July 25, 2006
Wi-Fi seen limiting battery life on Microsoft’s Zune – July 24, 2006
Why Microsoft’s Zune is doomed to fail – July 24, 2006
Bear Stearns analyst expects Apple to respond to Microsoft’s ‘challenge’ with new iPod innovations – July 24, 2006
Microsoft Zune? They should’ve called it the Microsoft ‘iClod’ – July 24, 2006
Enderle: Microsoft’s ‘iPod killer’ Zune is ‘brilliant strategy’ – July 24, 2006
Microsoft’s so-called ‘iPod killer’ Zune won’t zoom up the charts – July 23, 2006
Microsoft confirms ‘iPod Killer’ plans – July 21, 2006
Microsoft’s rumored ‘iPod killer’ poses little threat to Apple’s domination – July 18, 2006
Microsoft plans Super Bowl ad for ‘iPod killer’ – July 17, 2006
Sounds serious: Microsoft approaches iPod accessory makers for Zune would-be ‘iPod killer’ – July 12, 2006
Microsoft preps complete line of Xbox-branded digital-media products – July 11, 2006
Photo of Microsoft’s ‘iPod killer?’ – July 11, 2006
10 reasons why Microsoft’s ‘iPod killer’ will fail – July 11, 2006
Enderle on what it would take for Microsoft to kill Apple’s iPod – July 10, 2006
Microsoft: ‘iPod killer’ reports based on ‘speculation and rumors’ – July 07, 2006
Can Microsoft hit a fast moving target? Apple likely to debut wireless iPod this year – July 07, 2006
Analysts: Microsoft faces uphill fight to supplant Apple’s iPod+iTunes market dominance – July 07, 2006
Microsoft plans to convert iPod users by replacing iTMS songs with free WMA format songs – July 06, 2006
Microsoft to release wireless ‘iPod killer’ by Christmas to challenge Apple – July 05, 2006
Analyst Wu: Microsoft unlikely to dethrone Apple iPod+iTunes – June 21, 2006
Microsoft preps iPod+iTunes killer – June 19, 2006
Report: Microsoft readying Apple iPod+iTunes rival – June 16, 2006
Microsoft: No iPod killer planned – June 05, 2006
Microsoft, Toshiba, DoCoMo, Victor to develop Japan iPod+iTunes killer – June 02, 2006

Patent application shows iPod capable of live wireless video conferencing – June 13, 2006
Apple patent application filed for wireless iPod+iTunes distribution – May 04, 2006
Generator Research: Apple to Ship $4.2bn in Wireless iPods (WiPods) by 2010 – March 14, 2006
Ready for your wireless Apple iPod? – February 09, 2006
Wireless iPod? CSR and PortalPlayer to bring wireless connectivity to personal media players – February 08, 2006
Wireless Apple iPods coming in 2006? – December 09, 2005

More blood on Apple iTunes Music Store’s play button: MyCokeMusic is dead – June 20, 2006
More blood on Apple iPod’s Click Wheel: iRiver gives up on digital media player market – May 23, 2006
More blood on Apple iPod’s Click Wheel: Sony’s Walkman Bean is cooked – February 13, 2006
More blood on Apple iPod’s Click Wheel: Dell dumps ‘DJ’ hard-drive MP3 player line – February 04, 2006
More blood on Apple iPod’s Click Wheel: iRiver pulling out of Europe? – February 01, 2006
More blood on Apple iPod’s Click Wheel: Thomson gives up on MP3 player, CE markets – December 12, 2005
More blood on Apple iPod’s Click Wheel: BenQ withdraws from MP3 player markets – November 28, 2005
More blood on Apple iPod’s Click Wheel: Olympus halts production of portable digital music players – November 09, 2005
More blood on Apple iPod’s Click Wheel: Rio is dead – August 26, 2005
Apple’s iPod has blood on its Click Wheel: Virgin Electronics is dead – March 08, 2005
Apple’s iTunes Music Store has blood on its play button: BuyMusic.com is dead – March 28, 2004

36 Comments

  1. “Microsoft has shown its displeasure with Apple’s continued dominance of the digital player market.”

    Boo frickety hoo. Awww, a market isn’t going to roll over and empty their pockets for you eh Microsoft. I weep for you and your half-assed product development strategy.

  2. ” In entering the market, Microsoft has shown its displeasure with Apple’s continued dominance of the digital player market”

    Baller, “How dare any other company dominate a market niche! Microsoft most own ALL markets everywhere. Any upstart company that garners a majority market share will witness OUR displeasure!”

    In all fairness, the “displeasure” line is the characterization of some analyst and not a MS representative quote. Still sounds like something Ballmer would say.

  3. Balmer: “Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers!….”

    Balmer: Well, uh, you know guys. Developers all the way, until we need to do something else…

    Can you say ” M$ Living-room plans up in smoke?”

  4. Wait. Wait! Shhhhhh. Do you hear that?

    Do you?

    That’s the sound of my sphincter relaxing at de thought of de geniuses at Microsoft trying to compete with Apple.

    No really, Microsoft entering this market shouldn’t be permitted. It’s dangerous for them. I mean, it’s kind of like giving a deaf blind kid a free pass to spend a weekend at Neverland Ranch. He wouldn’t stand a chance.

    Yeh-heh-hehessssss . . . I keed because I care.

  5. MS’s Xbox division is already lossing hundreds of millions of dollars so they could compete with Sony, so who’s to say they don’t offer everything dramatically cheaper than Apple just to undermine their success. MS glory days are closing quick, look for some seriously desperate measures. But no matter, Apple will continue to rise as long as it sticks to its guns and keeps innovating with its products.

  6. ‘When you have such a dominant position as Apple, it usually means you’ve done something right.'”

    If Apple is replaced with Microsoft in the above, why does it suddenly become untrue?

    Serious question.

  7. Doing something right would be getting at least your core product prepared for release, doing something right would be to stay focused create awesome products and let others do what they do best. The only thing Microsoft has done right is strecth itself so thin that they can’t even release an update to its core product for almost a decade. Hmm.

  8. Microsoft does not really compete with Apple. Apple is to blame for losing the OS war. Apple never lost the “PC” war because they are the only personal computer company left. Microsoft is not a computer maker. Microsoft is a software company. Apple is in competition not with Microsoft but the entire PC industry in a way. They do not compete with just Dell but every box builder.

  9. M$ HAS to stick it to their partners. There has been nothing to counter the Apple onslaught, and as a result Apple has gained tremedous momentum toward the home entertainment market.

    Actually, I really kind of think it is almost all over but the crying. M$ is at a minimum a year behind Apple when they release Vista, which is to say 18 mos. If Apple comes out with a reasonable movie download service, with resolution good enough for most foks- like near dvd quality- they are solidly through the gates of Troy.

    Try using “handbrake,” rip a movie using h.264 2 pass encoding set for 900mb file size, and pipe it to your TV. You’ll be impressed. Actually, for me I use 700mb, and that’s very watchable on our 46″ DLP. So I don’t think it’s as far fetched as the guys who say the movies will need to be 5GB and take 5 hours to download expect. 90% of people will be very happy with 1GB movies, providing the price is right. 500mb takes 8 minutes on our RR connection, so 15minutes is not a lot to wait for a whole movie. . .

  10. Gartenberg is right — Microsoft is the best choice for all computing needs because they own 90%+ of the market for everything. Apple is just a fart in the breeze that will be forgotten when Vista and Zune are released.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.