Analyst: Zune could lead to ‘civil war’ between Microsoft and Windows Media partners
Friday, September 29, 2006 - 04:48 PM EST"Microsoft Corp. will likely lose money on its new music player, Zune, against Apple Computer Inc.'s 'industry-leading iPod profitability,' an American Technology Research analyst said Friday," Barbara Ortutay reports for The Associated Press. "Analyst Shaw Wu said a perhaps unintended side effect of the software company's entry into the portable music player market will be competition with its own licensing partners -- even putting smaller ones out of business."
"Wu said while it remains to be seen whether the Zune, with its similar pricing, bulkier form and 'inferior battery life,' will take share from Apple and its loyal customers, it will likely at least see modest success thanks to Microsoft's vast resources and strong brand name," Ortutay reports. "This success, however, may be at the expense of Windows "partners," especially companies like Sony, Samsung, Toshiba and Creative Technology Ltd., and others that sell hard drive-based players."
Ortutay reports that Microsoft's "entry into the portable music player market, Wu said, will likely lead to a 'civil war' with its own partners. As the market now stands, customers either buy iPods or something else, regardless of brand name. For now, the non-iPod market is very fragmented, with 15 to 20 players. Some of those, especially smaller ones such as iRiver or France's Archos, will probably exit the market -- like Dell and RealNetworks did -- or go out of business. 'Ironically, it will hurt them more than it will hurt Apple,' Wu said.
Ortutay reports,, "He reiterated a 'Buy' rating and a $91 target price on Apple."
Full article here.
[Thanks to MacDailyNews Reader "Joe Architect" for the heads up.]
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"Analyst: Zune could lead to ‘civil war’ between Microsoft and Windows Media partners"
Yes, and the armies will be divided by the Jackie Mason/Donna Dixon line.