How The Zune Fits In

[Jason Dunn]

<div class='os_post_top_link'><a href='http://www.fool.com/ahead-of-the-curve/2006/ahead-of-the-curve-06122001.htm' target='_blank'>http://www.fool.com/ahead-of-the-curve/2006/ahead-of-the-curve-06122001.htm</a><br /><br /></div><em>&quot;What does the future hold for Apple's iPod? Will Microsoft's Zune strike a chord with iPod users? Will the Mac continue to be part of Apple's core business? I recently put these questions to tech guru Bob Cringely, employee No. 12 at Apple, and part of the team that developed the desktop trash-can icon. Cringely is currently the host of the PBS online television show Nerd TV and the author of Accidental Empires: How the Boys of Silicon Valley Make Their Millions, Battle Foreign Competition and Still Can't Get a Date.&quot;</em><br /><br />This article is from the financial site Motley Fool, so it takes a different approach toward answering the question regarding why Microsoft entered into the game with the Zune. It also stakes a stab and why Apple will (not a question of &quot;if&quot; according to Cringely) stop making iPods completely. I tend to disagree - Apple is all about controlling every aspect of their platform, from end to end, and for them to give that up and let another company make iPods...it's not going to happen. At least, not while Steve Jobs is alive.

[Vincent M Ferrari]

That's a weird statement to make on Cringley's part, especially considering that it has no precedent

Apple would NEVER let another company in on their platform; just ask all the companies that were making clones in the mid 90's who were cut off when Steve came back...

[LPD]

What is more telling is how on message Cringley is. Its like Apple scripted the interview. I never thought Apple was worried about Zune until I read this.

[Damion Chaplin]

The more Cringely talks, the more I really dislike him, aside from the fact that I disagree with just about everything he says. He seems like he's just a jerk. These are the people that run Apple? And are chosen to speak to the press? I don't know, maybe he's just like that in front of the media. Either way, I tire of his banter.

He does, however, have one thing correct: The Zune IMO is in the future going to be strongly linked to the Xbox and will be marketed along side it. The Zune may eventually develop into a portable Xbox-type thing. People will begin to view the Zune as an essential accessory to their Xbox -- it's only $50 more than the HD-DVD drive accessory. It makes sense that MS would have a more insidious plan than just making a media player to compete with the iPod...

[David Tucker]

So he thinks MS is doing the Zune to keep Apple from making a game machine.

Right.:confused:

[Adam Krebs]

I didn't mind Cringely nearly as much as I minded Greer. As LPD said, it seemed like everything was scripted. It seemed like Greer was trying to suck up to Cringely in a way (the way he dissed the Zune more than Cringely).





EDIT: You have swear filters on?

[Phillip Dyson]

I think its easy to lose sight of the fact that MS and Apple have two different perspectives on how they want to achieve success.

Apple will not give up the iPod because they are a consumer electronics company, not a computer company. That means their profit margin is centered around hardware not software. Probably why you can't extend their AppleCare beyond 3 years. Thats also probably why they've been making small incremental updates to the iPod family. To keep people buying the hardware.

Having other companies make and sell the iPod would cut off their main profile source (as far as the whole iPod/iTunes machine goes).


Microsoft on the other hand is not as interested in hardware. Its always been, and always will be about the Windows platform. From Office, Windows Mobile, Windows Media, et al... its all to bring people back to Windows. Zune is no difference. It wouldn't surprise me to find out that MS was actually losing money on the Zune. Or perhaps if and when they drop prices to try and drive into the iPod pie.