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Technology Stocks : Apple Inc.

AAPL 259.48

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Jan 30 3:59 PM EST

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To: Don Green who wrote (54573)	7/17/2006 2:53:22 PM
From: Lizzie Tudor	of 213183

This would allow users to download music and other content directly to the device without using a PC. OK so this is the advantage of the Zune. But from where will they derive the content. Option 1- itunes. If this is how Zune works, it will always be mitigated to a niche. Itunes favors ipods. Option 2- non-itunes. 2 problems here. First there needs to be a music site with content that is appealing next to itunes. This means $.99 per song, and seamless podcast updates. This is a showstopper imho. Itunes is the dominant player and we know urge was a failure. Second is the user interface, as mentioned in the article. Going from internet to device straight is not optimal. The screen is too small. I think analysts are starting to get this after thinking Zune through. My opinion is that if Apple ever gets into the phone business, a HUGE WIN for them would be to have phone management software like itunes. This would be on your computer where you could manage people's phone numbers and addresses. Then upload to the phone, similar to itunes and the players.

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