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,” TheStreet.com 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,” TheStreet.com 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,” TheStreet.com 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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51 Comments

  1. FM radio is not crucial for woking out at the gym.

    I have never been to a gym where I needed anything other than a pair of headphones. Each machine has controls allowing to to change channel/volume.

    Apple knows that iPods are used for working out and have provided a stopwatch/lap counter, Nike+ system to help. If FM radio were crucial to the experience or if all gyms used the same system, radio would be integrated and not just an add-on as it is now.

  2. It is possible for the ZUNE to be a big seller…. there are a lot of idiots out there!

    Gees, most of them use windows and think they are getting a good deal!

    Mediocrity replicates itself with each generation. My quote. You can use it.

  3. “macromancer

    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.”

    You need to go back before the Mac. Many people have forgotten about the Apple II computer. Back in 1977 and many years after, it was the home computer to have.
    The IBM PC did not exist yet.
    So yes Apple has been number one, but not with the Mac.

  4. Agree with Gregg. If Apple releases the iTV and iPhone at MWSF, then breaking $100 (or $50 if split) is a sure thing after MWSF. BTW, what “Mac” hardware news will there be MWSF outside of Leopard? …Especially if it is a computer hardware company! ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    The price will dip after Apple’s “disappointing” earnings are announced the following week because the earnings expectations will have grown way too high after MWSF.

    Also, Apple is likely already the 3rd largest US computer company, having passed Gateway this quarter.

  5. First CNN, now Cramer’s Mad Money. How low will Apple go to manipulate the media for its own gain? Hey Apple: how much did you pay Cramer for all of the Microsoft bashing? Who got paid more, CNN or Cramer? Looks like Apple’s inability to compete with the Zune on features, quality, end user experience and flawless integration has forced them to use more of their underhanded business methods and bullying to get what they want. Typical.

    The Zune has FM! F freakin’ M! Apple wants to nickel and dime you for this essential feature. That’s what Apple does, muscle the customer because their products are consistently incomplete out of the box. Microsoft’s brilliant innovations and feature-rich solutions continue to paint Apple in a corner. You want an embedded camera on your laptop? Pay up. You want virus protection? Build it into the OS. You want a simple but powerful remote? Pay up again. I could go on and on. If it wasn’t for Microsoft looking out for the customer and innovating great products, what would Apple do? Get in bed with the studios and labels is my first guess.

    Welcome to the Social.

  6. Zune Tang,
    I can only assume that your post was meant as satire since it was 180 degrees from reality.

    Last I checked Apple added integrated cams to their laptop line with no increase in cost to the new systems. Virus protection? Simple and powerful remote… again included with every system that runs Front Row.

    Also do realize that you are guilty of libel of CNN, Cramer and Apple for making the claims you have.

  7. ” people should like [Microsoft] because of its new Vista operating system…when Microsoft launches Vista, people might get frustrated with having to update their systems and turn to Apple.”

    In that case, I really like Microsoft because of Vista…

  8. Vista will make people switch to OS X sounds reasonable. But when Apple has a strong marketshare a(a la XP in the current times) then will be the moment when Apple will sell OS X to Microsoft, as the rumors pointed some time ago.

    Mwahahahaha

  9. Stocks, especially short term are emotional things (technically, group psychology). The stock is just under it’s all time high. If it can break through that by more than a few pennies (and it may not for a while), then, yes, next stop $100. Maybe higher, but then I’d expect next year to be like this one… doubt creeps into the stock as they have to make the promise of iTV and iPhone and Mac share gains into reality (remember people have a LOT of profit in this stock… it’s easy to sell and take those profits.) Similar cycle but at a higher level.

    Of course stocks NEVER do what everyone expects them to! They can’t… if everyone thinks it’s going up, there is no one left to buy. And if everyone thinks it’s going down, no one left to sell.

    And this volatility is your friend. It means it will always be possible to sell when a stock is too high and buy when it is too low. If you have the discipline and clarity go against the mob..

    btw, I think Cramer is one of the smartest guys around…. BUT he lost faith in Apple when it bottomed out in the low 50s… exactly when it was time to buy. I thought Apple was too cheap at 65 and bought too early, but at least I didn’t panic at 50.

    My big worry about Apple: product quality. They need to have the discipline not to ship products before their ready. The Apple value proposition is that they take of technology so consumers don’t have to worry about it, and quality is a big piece of that. The market will wait for their products to be right.

    Sorry ’bout the novel, people =)

  10. My mistake. I apologize to CNN, Cramer’s Mad Money and Apple for the false claims made in my prior post.

    The potential for passion in regards to Zune is too much for me to handle sometimes. You understand.

    MW: ‘defense’ as in I’d rather save my money for an MP3 player than for a legal defense against two network and a technology giant.

    Now which one should I buy…

  11. Zune Tang’s over the top parody of what Microsoft’s paid bloggers say on this and other sites just negates the effects those paid bloggers have.

    Zune Tang is just leading the bullshit parade that the paid Microsoft bloggers are forced against their will to join.

    Sopmeone had to do it. No one, in their right mind, would think the Zune was desireable, let alone the right alternative for iPod haters.

  12. In all honesty, I’ll most likely hold out and see what Apple’s response to the Zune is. We all know that Apple is simply not going to take this lying down. I may put on a pro-Microsoft front, but as many have pointed out, it has simply been a satire on top of my true Apple core.

    All kidding aside, the Zune really has nothing that is going to pursuade the iPod masses to trade in their white iconic buds for the brick that Microsoft has shoved onto the table. Apple will respond with something thrice as elegant and functional as anything that Microsoft could ever possibly conceive.

    Congrats again to those who tried to prematurely blow my cover.

    Microsoft, you call this a social!?

    MW: ‘control’ as in the Zune is in an out of control downward spiral. Now where’s the 6G iPods…

  13. You want libel? I’ll give you libel: Big Al’s post. “Microsoft’s paid bloggers.” On what historical basis can you claim that Microsoft might conduct business in an unethical and unfair manner? Good luck finding something, ’cause you can’t. What you iPod lemmings can’t grasp is that Microsoft is all about the user experience and product quality. Apple simply can’t get near ’em. Aren’t you tired of their shenanigans? Microsoft never had and doesn’t need paid bloggers–their original, fresh products speak for themselves.

    Not only that, but the post dated Nov 16, 06 – 11:04 am is not from me, the genuine Zune Tang. That post is from a weak imposter. What cover?

    Elegant and functional? From Apple? Don’t count on it. Never happened before, and it never will. Thrice ain’t gonna be enough to topple this and future Zune offerings from the hit factory in Redmond. I’ll bet my points on it.

    Welcome to the Social.

  14. re: First CNN, now Cramer’s Mad Money. How low will Apple go to manipulate the media for its own gain? Hey Apple: how much did you pay Cramer for all of the Microsoft bashing? Who got paid more, CNN or Cramer? Looks like Apple’s inability to compete with the Zune on features, quality, end user experience and flawless integration has forced them to use more of their underhanded business methods and bullying to get what they want. Typical.

    The Zune has FM! F freakin’ M! Apple wants to nickel and dime you for this essential feature. That’s what Apple does, muscle the customer because their products are consistently incomplete out of the box. Microsoft’s brilliant innovations and feature-rich solutions continue to paint Apple in a corner. You want an embedded camera on your laptop? Pay up. You want virus protection? Build it into the OS. You want a simple but powerful remote? Pay up again. I could go on and on. If it wasn’t for Microsoft looking out for the customer and innovating great products, what would Apple do? Get in bed with the studios and labels is my first guess.

    Welcome to the Social.

    —-

    Lets get one thing straight – yes the iPod hasnt got an FM tuner built in…

    BUT! – The Zune is not the first player out there that had this ‘feature’ that has’nt even dented the iPod’s 81% global market share.

    To be honest, the Zune offers NOTHING more than what the other ‘also runs’ were offering 3 years ago – and we all know what has happened to those.

    AND the fact the Zune’s ‘amazing wifi feature’ is CLOSED means that the feature is as useful as a ‘chocolate fireguard’

    Tell me what the hell is th point of making a device ‘wifi enabled’ if YOU CANT CONNECT IT TO ANYTHING’???

    The whole point about wireless technology is that you can connect and share data amongst MANY devices – NOT just one.

    … ‘Welcome to the social’… – MORE LIKE ‘WELCOME TO THE SOCIALLY INEPT’!

  15. Since AAPL usually goes up toward the end of the year in anticipation of announcements at MacWorld San Francisco early January, I think it can easily reach $100. It’s currently at $85+ and there will be more momentum as good sales news is released throughout the quarter. The only thing that might derail $100 is a general market decline.

  16. ‘Welcome to the Social.’

    UPATE:

    Welcome to yet another money losing piece of crap that wont break even because M$ has invested too much money on it (just like the overheating and exploding X-BOX 360! – $400 million+ development and marketing costs anyone?)

    Everyone on the planet would have to buy 5 X-BOXes each for Microsoft to break even on the Xbox.

    Oh how great at business they are (LOL!) – If Microsoft didnt have its cash reserves the company would have closed down soo fast.

    It takes too long developing products for market, the products are crap, they dont work, Microsoft dont listen to what customers need etc etc….

    If Steve ‘Ballshit’ Ballmer ran a small company the way he runs Microsoft the company would be $ millions in the red and would have closed down within a year.

  17. AAPLE has bought me a car, a garage, and a Jacuzzi.
    I suspect that this year will bring more goodies from Santa Steve.

    HOHOHO = buy now, there’s still room left before the split.

    SB

    MDN: “police” as in the Police State of M$ is crumbling…

  18. Has anyone done a search on the Zune marketplace? I tried Rolling Stones, Bob Dylan, U2, Paula Cole, Miles Davis, John Coltrane, Mozart and Bach and came up nada! Those are hardly obscure artists, which makes you wonder who they do offer.

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