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Technology Stocks : Apple Inc.

AAPL 260.21

+0.3%

Jan 12 3:59 PM EST

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To: William F. Wager, Jr. who wrote (54945)	7/21/2006 4:23:16 PM
From: Lizzie Tudor	Read Replies (2) of 213182

this answers my concern that any 3rd party player running on top of itunes doesn't have a chance. Looks like they recognize that, and are addressing it with their own service. Microsoft Corp. confirmed it will launch a line of music and entertainment products under the Zune brand name, including a portable player and online service that will challenge Apple Computer Corp.'s dominant iPod and iTunes. Well- they've got their work cut out for them. I suspect this is similar to msft's efforts to thwart Google. MSFT branding has the most value to IT depts. Consumers don't see msft as cool, and that is the first obstacle to overcome and its a huge one. Ballmer's image is so bad with that monkey dance all over the web, Zune is going to need to overcome Apple's coolness factor- NOW- after Macbook. And then, within that, getting $.99 pricing from the studios is downright impossible. Zune will need to charge the same, so msft will be losing money and making it up in volume like the xbox. Not concerned here. And the street will shrug this off easier after the blowout.

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