Letzing reports, “The factory will produce a second iteration of the Zune, which has so far failed to impress in its effort to compete with Apple Inc.’s popular iPod.”
“The second iteration of Zune will include a number of different versions with varying prices and degrees of storage capacity, according to Jason Reindorp, Microsoft’s marketing director for Zune, although he declined to offer specifics. Web sites that follow the device have reported rumors that the newest versions of the Zune will be thinner and will include some smaller-capacity Flash-based players, similar to the popular iPod nano,” Letzing reports.
“Microsoft is also not disclosing the costs and timetable associated with the new factory. The company expects to have devices from the facility available sometime in the fall, Reindorp said,” Letzing reports.
“Gartner Inc. analyst Michael McGuire… cautioned that Microsoft faces big challenges in manufacturing the second version of the Zune. He says Apple’s iPod has benefited from manufacturing experience built up at the company during years of designing and manufacturing its personal computers and other products,” Letzing reports. “‘Keep in mind, Apple invested a lot over many years to get the expertise they have in-house,’ McGuire said.”
Full article here.
Microsoft’s Ballmer is obviously not satisfied with the amount of money being flushed down the toilet with this fiasco. Zune 2.0. While this’ll be fun for us, Microsoft shareholders really should light the torches, get out their pitchforks, and get marching.