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Technology Stocks : Apple Inc.
AAPL 271.29+0.6%Oct 30 3:59 PM EDT
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To: Kip S who wrote (54959)7/22/2006 1:31:32 PM
From: Lizzie Tudor  Read Replies (1) of 213170
 
re: MSFT Zune

Is it corporate ego, then, that drives these decisions?

In the case of Zune, I think it is partly ego on the part of Ballmer that just can't accept msft dominance is waning. There is some argument that ipod is a next-gen OS, and on that level MSFT might be threatened by ipod, so they try to compete. But the problem is, they have too many irons in the fire over there and their initiatives that are really important to the company are falling off the radar in favor of these little areas like Zune and XBox. They have no focus it seems.

They NEED to compete against Google, that is a must. But Zune/Ipod is an area that is not msft's to lose.

Do people (here) think Microsoft can mount a successful challenge to the iPod and iTMS. I'm more than a bit dubious. Did MSFT choose the wrong arena again?

I don't think Zune will be successful. ITunes is the largest reason, that is if Zune managed to ship a whizbang hardware gadget that trumped ipod on every level (which I doubt, seriously) you would still have the problem with competing against Itunes. Itunes is like google, its going to be a tough nut to crack. I have a bunch of podcasts coming down from itunes every week and for me to reinitiate that in Zune is way too much trouble.

Not to mention the entire Apple infrastructure including the extremely important STORES network that msft has nothing to offer.

MSFT already tried to compete with itunes with URGE and it was a dismal failure.

These internet properties are stickier than businesspeople think. Google and Itunes are locked in.
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