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New iPod pricing surprises Microsoft

updated 01:10 pm EDT, Fri September 15, 2006

iPod pricing surprises MS

Apple's decision to aggressively price its 30GB video iPod at $249 likely took Microsoft by surprise, according to American Technology Research senior analyst Shaw Wu. "We believe Microsoft is re-thinking its pricing strategy amid potential wider losses to stay competitive in the marketplace," Wu said. Microsoft yesterday officially unveiled its Zune player alongside an online store, announcing further details of the portable player's specifications and capabilities. "We remain underwhelmed with the much-hyped Zune, which is essentially a repackaged Toshiba Gigabeat, with limited differentiation vs. existing Windows Media devices," the analyst said. Wu suspects Zune will still see modest success due to Microsoft's vast resources and strong brand name, but at the expense of its Windows Media partners such as Sony, iRiver, and Toshiba. Microsoft also hinted that it is working on a Zune cell phone, following widespread rumors that Apple is placing the finishing touches on its own mobile handset.




by MacNN Staff

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  1. bobolicious

    Joined: Dec 1969

    0

    Brown...?

    If the extent of Microsoft's innovative thinking is to select the color of $#@! then what more can even be remotely inferred...? Brown? OMG...

  1. benhur

    Joined: Dec 1969

    0

    Apple to MS . . .

    "bring it be - yatch"

    Although there is some potential with Zune - integration with Media Center, Xbox 360, they have a partnership with Tivo.

    I wish Apple was able to parnter with Tivo and the Sony PS3. Instead, they are coming out with iTV which in my opinion is very limited compared to the other services available.

    Still, Apple makes great products. Should get very interesting.

  1. jarod

    Joined: Dec 1969

    0

    Even

    If the Zune was sold for $1, it would still be too expensive for a cheap, piece of s*** imitation by the worlds most un-innovative dump yard.

  1. Terrin

    Joined: Dec 1969

    0

    You Miss The Point



    This comment seems to miss the purpose of iTV. iTV is not intended to be a TV recorder. It is intended to bridge the gap between television and computers. People have always wanted to watch online, or computer, content on their televisions. iTV allows users to easily do that. I will be able to put a DVD in my computer and watch it on my television. I will be able play movies I recorded on my Mac on my television. I will be able to watch online content (think Google videos and YouTube) on my television. Moreover, I will likley be able to play my music on my television, and easily watch my photos on my television.

    Apple is not trying to be TiVo or the PS3 with iTV. Moreover, Apple does have a partnership with TiVO. TIVO supports the Mac platform, and Apple sells TiVO units at the Apple stores.

    There are plenty of good utilites out there that lets me record TV on my Mac. What I want is what iTV offers: an easy way to take these off my computer and put them on my TV.

    Just think off all those people who will start creating video content now that Apple is providing an easy way to put this content from the internet on to televisions.

    THis announcement is actually huge.

    On a side note: TiVO is struggling just to stay in business. Apple smartly is staying out of this business. Big media companies like Warner and Univeral hate TiVo. THey would be less likely to license Apple their content.

  1. Terrin

    Joined: Dec 1969

    0

    PS

    I forgot to add the comment:

  1. porieux

    Joined: Dec 1969

    0

    uh

    TiVos 'support' of the Mac platform is pathetic at best.

  1. kw99

    Joined: Dec 1969

    0

    brown is cool...

    if you call it Chocolate. I think Microsoft was trying make Zune like that popular cell phone. Maybe it should have called it Coffee. Or something else that's brown and appealing. Come to think of it, I can't think of anything else that's brown and appealing.

  1. Peter Bonte

    Joined: Dec 1969

    0

    brown sugar :)

    The iTV is basically a cheapo Mac Mini with better wifi and more P&P for the home. Apple will indeed never do recording but by pre-releasing it to devs i'm sure 3P products will be on the market soon after it ships, no worry's.

    I really like the concept and will gladly add a compatible TV recorder (with extra disk space?) to the mix.

  1. sagaces

    Joined: Dec 1969

    0

    iTV vs. ITV

    I'm surprised that Apple is able to use the iTV name considering that ITV has been a television service in Grreat Britain for something like 50 years.

  1. vasic

    Joined: Dec 1969

    0

    I thought people read

    Will people who bring up El Gato's EyeTV, as well as some UK TV channel ITV please catch up on their reading? Jobs said in the presentation that this is their internal working name (i.e. code name). Once the product is ready to ship, they'll think of an appropriate name. To begin with, iTV is a bit off the mark anyway, since it doesn't exactly deal with TV (broadcast, cable, satellite) content. We'll all continue to call it iTV in our discussions, knowing well that the name will be changed (anyone remember 'Longhorn'?)

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