Microsoft sees room in music player market for ‘Zune’ to challenge Apple’s dominant iPod

“Microsoft Corp. said on Tuesday it sees plenty of room for growth in the digital music player market as the company tries to dislodge Apple Computer Inc.’s dominant iPod with a device of its own,” Reuters reports.

“The digital music player market will eventually mushroom to hundreds of millions of units a year—up from a current rate of 30 to 40 million units per year, said Bryan Lee, corporate vice president of Microsoft’s entertainment and devices division,” Reuters reports.

Reuters reports, “Microsoft plans to heavily promote the wireless capabilities on its new digital music player, Zune, in order to position the device as an alternative to the iPod, which currently lacks wireless functionality, Lee said. ‘We want it to be the best music experience you can have,’ he said at a Citigroup investment conference that was broadcast over the Web. ‘You’ll see a lot of emphasis on community, a shared type of experience.'”

“The Zune, which is slated for release later this year, faces a tough battle against the iPod. Apple holds more than half of the digital media player market, according to research company NPD. In the United States, the iPod has more than 75 percent of the digital music player market, according to NPD,” Reuters reports.

Full article here.
Zune: Way too little, way too late.

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39 Comments

  1. “Zune: Way too little, way too late.”

    It is never too late as no company can hold onto a market forever. Apple is being wise to not rest and continue to innovate.

    Too little? Oh yeah, someone must really come up with something big to the point that Steve Jobs would say, “damn, I wish I had thought of that.” MS is under the false impression you can simply say, we have wireless so start a community.

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