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News
Zune a Bigger Threat to iPod Competitors
Sunday, July 23rd, 2006 at 3:00 PM - by Jeff Gamet
Microsoft clearly has its sights set on Apple and the iPod now that it has announced its Zune music player and download service, but the company's aim may be off. Zune is more likely to hurt other iPod competitors like Creative Technologies, Samsung, and Archos, according to CNET News.
Prior to the official announcement that Microsoft was developing its own music player product line and music download service, the company teamed with other developers to produce digital media players and services built on Microsoft technologies. With Zune, it is jumping into the same battlefield that its partners - now competitors - have been fighting in for years.
Instead of taking marketshare from Apple, however, Microsoft is more likely to steal customers from the companies that are making iPod alternatives.
Jupiter Research analyst Michael Gartenberg said "Early market share, however, isn't likely to come from disgruntled iPod users looking to switch. The real losers in the short term are likely to be the likes of Creative, iRiver and other former partners that have failed to deliver to market share from Apple and will now find themselves not only competing with Apple but with their former partners from Redmond."
In the end, the portable digital media player market may become a two-party system: Apple and Microsoft will be the big players, and Microsoft's allies will be left to fend for themselves.
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