MS can't compete with iPod

Microsoft may be prepping its own iPod-killer, but one analyst believes that the yet-unseen product will not be able to compete with the much anticipated 6th-generation iPod. Piper Jaffray analyst Gene Munster believes that Apple will release an updated sixth-generation iPod in the fall, saying that it will feature new wireless connectivity. "There has recently been a lot of talk about Microsoft's new wireless MP3 player and clearly Microsoft is rich with resources to compete with Apple," the analyst told clients. "We do not believe, however, that the yet-to-be-seen Microsoft offering will be a worthy opponent for the iPod." The analyst noted while Windows Media-enabled MP3 players have been in the market for three years, they have been unable to grow their roughly 25% market share. The new "wireless iPod", he said, "will likely focus on ease of use, including wireless connectivity." The new report follows the investment firm's rundown of the latest Apple rumors. Piper Jaffray maintains an 'outperform' rating on Apple's stock with a price target of $99.

by MacNN Staff