heh…

Come on Apple could you put a TV tuner before Microsoft does on your next iPod? I say no way.

This looks like Apple has to face feirce competition even though Zune is use only with Windowa OSs that is something that Apple might fear because Zune will soon be a world domination in Mulimedia players.

Lets see Apple’s response when the Zune is a world seller?

Zune. The infamous name of the product to be said the “Ipod Killer” .
“Microsoft Corp. said Friday it plans to release a new music and entertainment player and accompanying software under the “Zune” brand this year, in a …

I agree, we have to wait and see something we can evaluate. And yes I was implying that Apple isnt a good multi tasking company. The latest laptop they released with Intel technology now faces numerous callbacks due to overheating etc. And other problems as well.

Ever since the invention of the Ipod more and more defects with their laptops have been growing. Probably because so much work is going on with the IPOD being such a success it will overshadow other productions. If your the CEO of the Company its easy to get carried away and lost in your most popular product while ignoring your other products. Not very hard to do, and a horrible pit fall.

[I had an IPOD until the battery just died out. And what about the new Mac Laptops whose Batterys expand and actually break the casing due to over heating. ]

Tons of batteries systems etc. get recalled, that’s a fact of life. I think it highlights the difference between schematic/lab measured efficiency and durability under actual conditions.

However, is the discussion about Apple v. Microsoft? I was quite focused on Microsoft’s problems internally. It is just as important to look at the broader picture of MS competitive landscape and their future “digital hub” strategy …

Sony (PSP, mp3 walkmans AND phones, PS2,)
MS (Zune/Xbox360)
Apple (ipod.)

[Whether or not your a “Scientist” does not make you any smarter on marketing a product. Nor am I saying I am myself. But the fact that you say

“All I do not see “unlimited” money as a significant advantage, I see the software / crushing their existing vendors as Microsoft’s largest short-term advantage. However, in the long term, I am very concerned about Microsoft’s focus as well as credibility with hardware producers. ”

I do not see this. What I do see is Apples unbalanced track its going. So far they seemed to tottaly shift their gears to the ipod. After a while the Ipod fad will die and then what? Currently when someone thinks of Apple they think IPod. ]

Again, I am examining Microsoft’s shift in strategy. I would definitely agree, marketing is much more of an art and not a science… However, I’m not sure I would give Microsoft a distinct advantage in that area over some of the existing players. Sony, Apple, and Samsung are quite good at marketing products both in the US, EU and Japan (although Sony has taken a beating recently). Furthermore, marketing does not matter much if consumers do not enjoy the product.

I do not quite understand what you are saying in regards to “Apples unbalanced track.” You seem to imply that Apple is no longer going to be successful, and as a result Microsoft’s unproven strategy in the space will succeed?

I think you are advancing an argument about Apple’s long-term strategy as well as Microsoft’s reaction to that strategy. However, Apple does not have a habit of pre-announcing products or initiatives…the “just do it” (like with the Nike add-on).

As a result it is extremely hard to compare MS new announced future to Apple’s future, it is far easier to comment on the info MS has released.

[Why would Microsoft would do this is easy. If you fill the market with a competitive product such as Zune than Apple will become flustered feeling their product “Ipod” is losing marketshare and will keep their minds on their digital music product more then their software development.]

Ok, you seem to be implying Apple can not participate in several related markets at the same time. I definitely do not agree with this, I think they are actually extremely focused in comparison to other companies in the space.

Most importantly, Zune does not exist yet in the wild.

It is extremely hard to compare an existing product array to something that is probably in a state of flux. (even minor changes could make a huge difference things like pricing, colors, supply chain management, shelf space in major retailers, manufacturing centers, circuit components, NEW software etc…)

[How would Wall Street kill this product? As an Investor this is a Huge deal in whether one should sell their apple stock or not. Because I dont think alot of investors will be happy if Apple stocks drop because Zune is a successful product.]

Wall Street will crush the MS vendors who participated in Play for Sure and were counting on MS for technology. It is pretty clear their own technology provider, MS, does not believe they have a future.

Below is my original quote.

“Wall Street will absolutely crush Creative, Napster, iRiver and San Disk, (it seems they got steamrolled and worse yet, never saw Microsoft turning on them). Microsoft’s introduction and marketing of the new Zune technology implies that it will be superior to the existing Microsoft technology given to partners. If they succeed, they will almost immediately cannibalize the “not ipod” marketplace.”

I said this was actually Microsoft’s key advantage, they have significant control over the software technology utilized by a lot of mp3 players, pdas, phones and home computers. What if they build the new program into vista and bury windows media player? That’s a significant advantage over existing non-apple market players… can they use it though? Only time will tell.

As far as MS and the street I think it is too early to gauge Wall Street’s reaction to the MS new strategy, it will probably depend on a lot of factors that are just not available yet.

Will the products/strategy benefit or undermine xbox360? Will it delay profitability of the xbox franchise? Will it cause more disarray or will it focus the digital media strategy? What impact will it have on hardware manufacturers?

[My personal opinon is Microsoft is here to prove Apple wrong just as you said. But they are doing it by cornering Apple into a music fad war. What long-term objective would there be for this for Microsoft? How long will the Ipod remain a hot item? Until another item replaces it. And its kinda akward and disturbing Microsoft is just annoucncing this right on the heels of releasing vista. It seems like Microsoft is going for a 1-2 knockout punch here, and the momenteum behind it is disturbing in the fact that is superbly well cordinated. Very unilike Microsoft.]

I do not really see it as Microsoft v. Apple, after all there are a large number of former partners Microsoft needs to placate and compete with as well.

Microsoft’s strategic announcement is more damaging to those smaller players than Apple. Sandisk, Tosbiba, Creative and iRiver all have excellent alternatives with more features than ipods right now. However, this annoucement casts their future into doubt.

So, it is hard to tell at this point how Apple’s stock will be affected. (Or Sony, Samsung and the players capable of competing/partnering to counter an integrated strategy approach).

It is as though you are assuming a best possible MS product AND zero response from Apple, Sony and other players.

I just do not think that scenario is accurate.

The whole market can be shifted by a disruptive strategy…free or subsidized high-capacity music phones (wireless providers), free and/or low-cost hardware off-set by music subscriptions (Amazon).

On the surface, I have yet to see anything disruptive in the announcement by MS.

Right now, I see MS shifting to a strategy they previously said was not going to be successful in the long-run. In fact, they are actually describing it as similar to Apple/iTunes, so it will be interesting to see the actual products they introduce…maybe they have everyone making false comparisons…

However, until they produced something tangible to evaluate…..

I predict Balmer throwing more chairs.

I am excited about the possibility of zune, and I have owned iPods for a long time.

THEY have a HUGE gap to jump. If I am not correct, any small ordinary form of advertising or pushing of their product will not work.”

You are in la la land to think that by purchasing the library of individuals to intice them to switch is going to pay off.

Lets see. Over 1 billion songs sold. Do the math and you will see why they have already failed in that category if that is one of their strike weapons.

Microsoft have ALMOST failed before they have launched. I wouldn’t count them out - stranger things have happened.

But has Microsoft turned a profit over the whole XBox / 360 project? Their strategy there was amusing to say the least. Basically pour a whole lot of money into a project and MAYBE we will make some dough - it will at least get our name out there. Wrong.

Microsoft need to take a different strategy on this one.

And lastly you are in la la land to be so confident in Microsoft to pull this off so comfortably.