Cramer’s Mad Money: Microsoft’s Zune is pathetic; Vista may cause people to turn to Apple Mac

“Microsoft just took an aim at Apple with its Zune music player, but Apple is still the leader of portable music, Jim Cramer told viewers of his ‘Mad Money’ TV show Wednesday,” reports.

“First of all, compared to Apple’s iPod product, the Zune is too big and bulky, he said. And second, it comes in three colors, one of which is brown, a hue that is not likely to be popular among the younger set,” reports. “Reason No. 3 why Cramer believes the Zune is likely to fail is that its music store is not good compared to iTunes, which is easy to use.”

“He said he finds the Zune, which doesn’t even have an original design, ‘pathetic.’ Moreover, the rankings for the product, which just debuted Tuesday, are much lower than expected,” reports. “However, none of this is to say Cramer doesn’t like Microsoft, because he does. He said he believes the company has done well and people should like it because of its new Vista operating system, not because of the Zune. However, it is no competition for the iPod, Cramer said. The iPod is just one reason among many to own Apple. ‘Its laptops are very popular with the college generation,’ he said. ‘When you buy a Mac, you are buying a beautiful, easy-to-use machine.'”

“Also, when Microsoft launches Vista, people might get frustrated with having to update their systems and turn to Apple. In the end, ‘Apple is an iPod story,’ which is never-ending, he said. Plus, it has ‘a ton of financial flexibility,’ which could translate to buybacks and dividends in the future. ‘It could go to $100 by the end of the year,’ Cramer said. ‘Apple is invincible thus far.’ Apple closed at $84.05 on Wednesday.”

Full article here.
Apple is much more than just an iPod story – however beautiful that story might be – the Mac and Mac OS X are taking share from Windows as you read this sentence. Of course, there’s also Apple’s iTunes Store, with the looming ‘iTV,’ the ‘iPhone,’ Mac OS X Leopard, Apple’s growing software products, Apple Retail Stores, and only-Jobs-knows what else to come. Otherwise, Cramer’s got it right. One question: Do you see Apple shares at $100 by the end of this year?

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  1. LOL yeah they made computers way before ipods.. they are way more than an “the ipod company” and are currently 4th biggest PC manufacterer and that has nothing to do with ipods. they’ll have more hardware soon as the iphone is coming next year and has been contracted out.. Macs where around way before the ipod and I persoally love both.. and OS X and the software they sell is just awesome.. watch over the next year and you’ll see way more people buying apple computers so they can run OS X, XP or Vista or whatever OS they want.. the iPod share will probably drop but the computer section will go up

  2. Microsoft always has been painfully pathetic and mediocre, their OS, their software their hardware, their security, their management, their entire existance.

    Apple needs to make it’s hardware more attractive and finally one day just releasing Mac OS X with the ability to run Windows software natively as a seperate OS for any PC.

    Microsoft will die.

  3. $100 is too much. They should double-down to $25 right when they hit it.

    I don’t know anything about the stock market or economics in general though, so they’d be silly to listen to me. Regardless, they’re computers are off of the hook.


  4. I finally wore my parents down. They got a 20″ iMac for their latest computer. They’re in their 60’s, by the way.

    So let’s see, of everyone I know personally that owns a computer, there’s only a couple left to go.

  5. Don’t be so quick to dismiss the Zune. Ars Technical just gave a GREAT review of the Zune, and it does have a much better & much prettier interface than the iPod. It also has a built-in FM Radio, which is crucial for people who want to listen to the closed-circuit televisions at the gym & tune into their favorite radio shows. The Zune kicks the iPod’s ass on many different levels.

  6. Do you see Apple shares at $100 by the end of this year?

    If AAPL hits $100 it will be between MWSF and options expiry. My personal target for AAPL is $98, but I’m seeing a lot of excitement building about this quarter. That sentiment could push AAPL well over $100 by options expiry.

  7. “Apple is the ipod company, they will never be #1 with computers or an OS.”

    They never were #1. There’s this common misconception that Apple once ruled the PC world like MS has come to, and its just not true. Apple at its peak had 15% of the US market maybe.

    I can see the Mac getting to 12% for sure. That’s worth billions to Apple’s bottom line.

    Not too long from now we will be looking in the rear view mirror at $100/share.

  8. Apple is and pretty much always has been a consumer electronics company.
    The fact they made computers is a nice coincidence for all of us that like them.
    But when you look at the attitude they have about their products they are more similar to companies that make TV’s, radios, stereos and all kinds of other consumer electronics. You turn them on and they just work.

    MS, Dell and lots of others have not figured that out and try to deal with Apple as a “computer maker”

    It’s what makes iTunes+iPod work so well

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