Microsoft sees room to challenge Apple's iPod
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Microsoft Corp. MSFT.O 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   AAPL.O dominant iPod with a device of its own.
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Microsoft's Zune will have to work very hard to unseat the dominance of Apple's iPod and iTunes say industry experts.
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(InfoWorld) - In what can be seen as either a joke or a real attempt to get employees to give up Apple iPods in favor of the Zune MP3 player, the team at Microsoft that builds Zune has set up a bin at its headquarters so employees can drop in iPods they don't want to use anymore. A photo of the "iPod Amnesty Bin" , which has on it an image of a bitten green apple and the words "Bite me," has been posted on Flickr. From the looks of the photo, not many people have been willing to give up their iPods, though a few of the earlier versions of Apple Inc.'s popular media players were lying at the bottom of the bin. A user who calls himself "fimoculous" and identified himself in an e-mail as MSNBC.com employee Rex Sorgatz , posted the photo, and said he thought the bin was someone's idea of a joke, nothing more. MSNBC.com is a joint media venture between Microsoft and MSNBC. "My guess is someone at Zune thought it would be funny, that's all," he said. Sorgatz said he is an iPod user, but could be convinced to switch if he found a superior product. Matt Rosoff, an analyst with Directions on Microsoft, also suspects the bin's placement is meant to be funny, as it would likely be in the Zune team's best interest to use the latest iPod devices for competitive purposes. Indeed, none of the iPods in the bin in the photo were current versions. "Most of the people [working on] Zune would want to have an iPod to keep track of the competition," he said. "On that team, they're all into digital music, so all of them probably have a bunch of players." The photo got numerous comments from Flickr users, who in general thought it was amusing, though some were less impressed than others by the joke. "Only someone stupid enough to buy a Zune would be equally stupid enough to not sell their discarded iPod on eBay," commented Ariel Waldman , (ariel_waldman on Flickr), a digital insights analyst at interactive marketing agency VML Inc. "That's funny," wrote another who goes by "Dr_Watso" on Flickr. " I was always amazed that people ... jumped on the iPod bandwagon, even though there are so many much better devices that cost a whole lot less." The Zune team is based at Microsoft's Bear Creek offices in Redmond, Washington, near the main campus. An Apple spokesman declined to comment. A spokesman for the Microsoft public relations agency that represents Zune said she could not reach anyone on the team for comment, but she suspects the bin is meant to be a joke or a "morale booster" for employees at Zune headquarters. Microsoft launched the Zune last November, but the device has done little to sap enthusiasm for the iPod, which remains a top seller in the hard-drive media-player market, according to marketing-research firm NPD. Still, Microsoft is ramping up its marketing efforts around Zune in the hopes it can drum up interest in the device. The company released a pink Zune earlier this month that is outselling Zunes in white and brown, according to the company, and also launched a new print advertising campaign to promote the pink Zune called "Sync Pink." Microsoft also introduced a new TV commercial that highlights the features of Zune that differentiate it from the iPod, such as wireless sharing and the FM radio tuner. Microsoft is leveraging the popularity of its Xbox game console to promote Zune as well. In light of the highly anticipated release of the "Halo 3" Xbox game later this year, Microsoft unveiled a limited edition, "Halo"-themed Zune that comes preloaded with "Halo" videos, soundtracks and trailers. The device will be offered exclusively at GameStop retail stores and on its online store beginning June 15. There already have been preorders for the device, Microsoft said.
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US software giant Microsoft is aiming to get its audio and video software into mobile phones before it is beaten to the 650-million-handsets-a-year market by rivals like Apple.
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SEATTLE -- Microsoft Corp.'s effort to compete against Apple's iPod juggernaut will focus on the idea that people want to be able to easily share music with friends and others.
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While Microsoft's new Zune won't topple iPod as the leading media player, a survey indicates it could eventually take sales away from Apple.
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Apple is recommending that iTunes users stick with Windows XP for now. The iPod-maker is warning that its music store software might not be compatible with Vista, Microsoft's latest operating system.
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Although Apple's combo of iTunes and iPod has proved popular, Microsoft is betting that people want to do more with their music and that they want to be able to move video and pictures around as well.
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Software giant Microsoft said that its Zune MP3 player challenge to Apple Computer's internationally popular iPod will hit US stores on November 14.
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A Microsoft executive indicated that it would make sense for the company to develop an iPhone competitor.
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Microsoft said that Toshiba would make the Zune portable media player, MicrosoftÂs answer to the iPod from Apple Computer.
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Apple Computer Inc.'s reign as king of the digital music business is about to meet its most serious challenge as software heavyweight Microsoft Corp. prepares to enter the fray.
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SEATTLE -- Microsoft Corp. has vowed to put considerable money and effort behind its bid to dethrone Apple Computer Inc.'s market-leading iPod, but it won't be using price as a weapon.
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Microsoft Corp. (MSFT), hoping to take a bite out of Apple Computer Inc...
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Microsoft Corp.  said on  Tuesday that it is "not unreasonable" for the company to  introduce a mobile phone combined with features of its Zune  digital music player to compete with Apple Inc.'s   iPhone.
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Apple&#39;s splashy digital music player has emboldened Microsoft and other technology titans to move quickly to the next frontier in portable entertainment: the video iPod, so to speak.
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Microsoft's newly released music player is the latest in a years-long desire to counter Apple's dominance in the sector.