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Microsoft sees room in music player market for ‘Zune’ to challenge Apple’s dominant iPod
Wednesday, September 06, 2006 - 12:36 PM EST

"Microsoft Corp. said on Tuesday it sees plenty of room for growth in the digital music player market as the company tries to dislodge Apple Computer Inc.'s dominant iPod with a device of its own," Reuters reports.

"The digital music player market will eventually mushroom to hundreds of millions of units a year—up from a current rate of 30 to 40 million units per year, said Bryan Lee, corporate vice president of Microsoft's entertainment and devices division," Reuters reports.

Reuters reports, "Microsoft plans to heavily promote the wireless capabilities on its new digital music player, Zune, in order to position the device as an alternative to the iPod, which currently lacks wireless functionality, Lee said. 'We want it to be the best music experience you can have,' he said at a Citigroup investment conference that was broadcast over the Web. 'You'll see a lot of emphasis on community, a shared type of experience.'"

"The Zune, which is slated for release later this year, faces a tough battle against the iPod. Apple holds more than half of the digital media player market, according to research company NPD. In the United States, the iPod has more than 75 percent of the digital music player market, according to NPD," Reuters reports.

Full article here.

MacDailyNews Take: Zune: Way too little, way too late.

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Sep 06, 06 - 11:44 am Comment from: Thorin

" Microsoft sees room in music player market for ‘Zune’ to challenge Apple’s dominant iPod"


I see room for growth in the front of my Levi's

But that doesn't meant it's gonna happen.

Sep 06, 06 - 11:45 am Comment from: Thorin

Oops, bad spelling.

Sep 06, 06 - 11:46 am Comment from: mossman

"We want it to be the best music experience you can have"

yet they'll restrict it to Windows and WiMP. The statement rings false right from the start.

Sep 06, 06 - 11:46 am Comment from: Mr. Reeee

Yeah, there's room for Microsoft in the iPod Universe...
There are PLENTY of seats in the BACK of the bus.

Sep 06, 06 - 11:47 am Comment from: Connor MacBook

Here in Oz the latest iPod ad campaign has ramped up, obviously to clear out inventory and then dovetail into next week's announcements. Zune will be stillborn.

Sep 06, 06 - 11:48 am Comment from: J M

"MacDailyNews Take: Zune: Way too little, way too late."

ahh! I hear a Johnny Mathis/Deniece Williams song coming on...

"Guess it's over, call it a day..."

Sep 06, 06 - 11:48 am Comment from: mossman

Clarification: I mean to say that requiring Windows and WiMP, they're forcing users to use substandard products; obviously I don't care two dimes that they won't bother with Mac or Linux platforms.

Sep 06, 06 - 11:50 am Comment from: iSteve

"Zune: Way too little, way too late."

It is never too late as no company can hold onto a market forever. Apple is being wise to not rest and continue to innovate.

Too little? Oh yeah, someone must really come up with something big to the point that Steve Jobs would say, "damn, I wish I had thought of that." MS is under the false impression you can simply say, we have wireless so start a community.

Sep 06, 06 - 12:01 pm Comment from: Mr. Peabody

No but really, I also think there's room in the music player market for iPod challengers - its just not going to be Zune. Sorry MS.

Sep 06, 06 - 12:06 pm Comment from: scottm4321

Didn't M$ used to say that the mp3 player market would shrink as cell phones took on more functionality? I wish they're make up their minds.

Sep 06, 06 - 12:08 pm Comment from: Usually Right

Too funny.
Reuters reports, "Microsoft plans to heavily promote the wireless capabilities on its new digital music player, Zune, in order to position the device as an alternative to the iPod, which currently lacks wireless functionality, Lee said.

Once again, APPLE will push MS into the Obselesence Galaxy (right next to our own MILKY WAY!) before they even get started.

ipod- isn't 75% too low?

magic word- "done".
As in MS, your DONE.

Sep 06, 06 - 12:11 pm Comment from: maczac

MDN's take should have been: "HA HA HA HA HA HA HA HA HA HA HA HA HA . . . [gasping for breath] . . . HA HA HA HA HA HA HA HA HA . . .

somehow ROTFLMAO just doesn't make the coffee spewing through my nose laughter that the title generated.

brought to you by "others" as in there may be others, but certainly not Zune.

Sep 06, 06 - 12:13 pm Comment from: Redmond Boy

Microsoft Fails4Sure

enough said.

Sep 06, 06 - 12:14 pm Comment from: Usually Right

Whoops.
Obsolescence.

Sep 06, 06 - 12:16 pm Comment from: Creative Genius

Words that rhyme with ZUNE

attune, baboon, balloon, bassoon, bestrewn, boon, buffoon, cartoon, cocoon, commune, coon, croon, doubloon, dragoon, dune, festoon, forenoon, goon, harpoon, hewn, immune, impugn, jejune, june, lagoon, lampoon, loon, lune, maroon, mistune, monsoon, moon, neptune, noon, oppugn, platoon, poltroon, pontoon, prune, quadroon, raccoon, racoon, rangoon, roughhewn, rune, saloon, shogun, soon, spittoon, spoon, strewn, swoon, teaspoon, tribune, triune, tune, tycoon, typhoon, walloon


GET TO WORK PEOPLE!!!

Sep 06, 06 - 12:22 pm Comment from: Jimbo von Winskinheimer

Creative Genius, you forgot poon and Camaroon.

Sep 06, 06 - 12:25 pm Comment from: poo

I have several friends who got iPod alternatives. Every one of them is sad and hoping their player breaks soon so they can justify a real iPod purchase.

It's such a waste of time for MS to pursue this. They should be focusing on getting Vista right instead of dicking around with an ugly iPod wannabe.

Sep 06, 06 - 12:25 pm Comment from: ron

Why mommie is a democrat. Hahahahahaha. No daddie in sight.

Sep 06, 06 - 12:34 pm Comment from: schmluss

The headline should read:
"Microsoft Still Delusional About Zune"

Sep 06, 06 - 12:36 pm Comment from: Macaday

I see Microsoft continuing to dominate in the virus, trojan and spyware markets. That's all.

Pissing their resources away on Zune should have shareholders demanding to know what the F*** is going on in Redmond.

Sep 06, 06 - 12:41 pm Comment from: Macaday

I found my Zune was not immune to Trojoons in a Cameroonian saloon.

Sep 06, 06 - 12:43 pm Comment from: G-Spank

"The digital music player market will eventually mushroom to hundreds of millions of units a year—up from a current rate of 30 to 40 million units per year"


Great news for AAPL

Sep 06, 06 - 01:03 pm Comment from: Wade

Once my Zune sang,
I got no poontang.

Sep 06, 06 - 01:07 pm Comment from: Dr Mcr

I wonder if the wireless security will be as bad as their operating systems? What's thew betting that there are more security patches downloaded from their site than songs?

I wonder if they will make a big song and dance about the 1 billionth security patch download?

Sep 06, 06 - 01:38 pm Comment from: jim - the independent voter

Someone help me out on this... didn't we see a post that wireless capability was already being taken out of the Zune?

Sep 06, 06 - 02:00 pm Comment from: macman

So when will the first Zune virus be released?

Sep 06, 06 - 02:03 pm Comment from: KenC

Apparently, it won't be here Zune enough to stem the iPod tide.

Sep 06, 06 - 02:17 pm Comment from: Usually Right

Yes, the ipod tide.
Which can be experienced during ANY zunar eclipse.

Sep 06, 06 - 02:51 pm Comment from: AlanAudio

Did anybody notice how the article finished ?

After explaining all about Microsoft's hopes for Zune, the last sentence was "Microsoft shares fell 16 cents to $25.68 in late-afternoon Nasdaq trade."

Well they certainly impressed the markets then.

Sep 06, 06 - 03:05 pm Comment from: LordRobin

Wouldn't it be hilarious if a new iPod introduced on 9/12 had wireless capability? Not that I think such a feature is necessary, but it would take all the wind out of Microsoft's sails. What could they possibly say to sell the Zune then?

Sep 06, 06 - 03:10 pm Comment from: Oops

MS seems to be betting the farm on this silly "shared experience" thing. It's a non-issue. People just want to put on their headphones and listen to music. They want to listen to what THEY want to listen to. Not what someone else wants them to listen to.

And I'm also a little tired of people comparing some future yet-to-be-released Zune poc with the current on-the-market iPod offerings, as if Apple has just ceased development on the iPod and will no longer be offering any innovations of its own. If you really want to talk about a war of innovations, then I already know who is going to win that war, and it won't be MS. And I really don't think a Dell-ification of the mp3 market is going to work. The types of people that by these music/video players are by and large not the type that care about the "cheap bastard" argument. (The "cheap bastard" argument being of course, "Well, the Zune devices ARE cheaper.")

Sep 06, 06 - 03:19 pm Comment from: Usually Right

I was thinking the very same thing.
Besides, Zune- "...slated for release later this year..."

Who knows what else Apple can pull off between now and then (ipod updates, that is).

Sep 06, 06 - 03:23 pm Comment from: Jim McIntyre

"Microsoft plans to heavily promote the wireless capabilities on its new digital music player, Zune, in order to position the device as an alternative to the iPod, which currently lacks wireless functionality"

Wait until next Tuesday. Then MS might have to modify the end of that statement.

"We want it to be the best music experience you can have"

Even if MS truly wants that, they have shown time and again they are utterly incapable of actually delivering it.

Sep 06, 06 - 04:16 pm Comment from: wirelessless

Why do I need wireless again?

I'm sure it'll be hamfisted in its implementation, as always from Microsoft.

If Apple does it too at least it'll be done right.

Sep 06, 06 - 04:19 pm Comment from: fatkid

That Zune brick is so fat it can't see it's own dick when it pees.

Fatty.

Sep 06, 06 - 04:22 pm Comment from: AlanAudio

For those old enough to remember when Walkmen were new and all the rage, do you recall that in the early days, they had two headphone sockets so that you could share your music with a friend ?

How many later models felt it was worth bothering to add a second socket ?

I'm not so sure that sharing is a particularly popular feature with users.

Sep 06, 06 - 04:36 pm Comment from: microzoon

"...a current rate of 30 to 40 million units per year," said the genius Mafiasoft VP.

Letsee, Apple sold 37 million iPods over the last 12 months. I thought their market share was around 50% worldwide, but it seems it's really between 93 and 124%?!

Sep 06, 06 - 07:47 pm Comment from: maczealot

The only thing Microsoft will see will be another interminable year of disappointment, frustration, and bewilderment.

Sep 06, 06 - 08:21 pm Comment from: ABQ Peter

"eventually mushroom" - only someone from microsoft would put those two words together.

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