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Technology Stocks : Apple Inc.
AAPL 260.21+0.3%3:59 PM EST
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To: Lizzie Tudor who wrote (54946)7/21/2006 4:39:31 PM
From: NAG1  Read Replies (1) of 213182
 
Lizzie,

I wouldn't shrug it off that easily. Microsoft is a worthy competitor despite its flaws. It is the one company that can make the device as well as the software, which, as we know from the iPod experience, is more important than all the bells and whistles that you can cram into a small enclosure. It is also being done by the xbox people from the stories that I have read and they seem to have done decently with the xbox franchise. They do have the xbox tie in that can help them with sales and marketing.

All that being said, you also have to wonder if MSFT can pull it off. They have had trouble getting their new OS out the door with a rapidly shrinking feature set and now they have to also step up to the plate to make sure this player will play nicely with MSFT software. They have not had any traction to date with their URGE service. They have also had trouble getting the hardware out the door, especially their first editions.

It will be interesting to see what they can come up with, remembering that Apple is not going to stand still on this matter. Actually, I thought I read somewhere that mp3 player market penetration is still pretty low(I thought I read around 12%). If that is the case, there really is enough room for everybody with there being significant growth to be had.

Neal
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