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Microsoft Readies Zune for War

Filed in archive Apple , MP3 Players , Retail by Marc on October 2, 2006

Microsoft Readies Zune for War
Microsoft has chosen a conservative path by pricing the Zune portable media player at $249 US retail. The price is competitive with the Apple iPod (30GB). Zune's music store will similarly be competitive with $1 downloads and $15/mo unlimited rental service (comparable to RealNetworkslinks' Rhapsody).

By refusing to price the new product as a loss leader to capture market share, Microsoft risks being rolled over by Apple's superior brand and market share. Zune will compete against the iPod with extra features - wireless file transfer, file sharing, FM tuning, and a subscription offering that iTunes doesn't offer. Few observers, including this writer, believe that this strategy will make a significant dent in Apple's position.







Permalink: Microsoft Readies Zune for War
Tags: microsoft  apple  zune  mp3  player  store  digital  digital+music 

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