Microsoft Corp. unveiled on
Thursday its new "Zune" portable media player, hoping its
ability to share music wirelessly can win over consumers
despite its late entry five years after Apple's
market-dominating iPod.
The world's largest software maker said the music player is
the first step in creating a whole brand of portable devices,
and a Zune mobile phone is also in the company's plans.
Microsoft said it will launch a 30-gigabyte Zune and an
iTunes competitor called the Zune Marketplace in the United
States this holiday shopping season.
The new rectangular player, which was handed to reporters
at a news conference, is similar in appearance to the iPod,
with a round click wheel but a larger 3-inch screen. The Zune
comes in black, white and brown.
Microsoft did not give a launch date or pricing, but said
the Zune's wireless connectivity feature, which allows users to
beam photos and songs to one another, will differentiate it
from Apple Computer Inc.'s popular iPod.
Analysts said the wireless feature, currently unavailable
in the iPod, will attract some customers but market share gains
will probably come at the expense of other music player makers
like Creative Technology and SanDisk Corp.
"Zune isn't an iPod killer but it does offer some
compelling features that Apple currently lacks," said
JupiterResearch analyst Michael Gartenberg. "It still looks
like short term market share will come from other device
vendors, not Apple."
The Zune, along with the
Xbox game console, is part of
Microsoft's strategy to diversify beyond its core desktop
computer business, which is facing competition from Web rivals
like Google Inc..
"Microsoft has to stay relevant to how people are accessing
information and entertainment. The desktop is not the center of
the world anymore," said Toan Tran, an analyst at Morningstar.
Redmond, Washington-based Microsoft has said it plans to
invest hundreds of millions of dollars to develop and market
the Zune, while acknowledging that the investment may take
years to bear fruit.
MODEL T OR PONG?
Unseating the iPod, which holds more than half of the
global digital media player market according to research
company NPD, will be no easy task.
Apple has already moved beyond music to start offering
movie downloads from its iTunes online media store this week,
in addition to a growing collection of television programs.
Movies and television shows will not be available for
download when the Zune launches, but Microsoft said it is in
talks with major television and movie studios about adding
video content to the Zune Marketplace.
Analysts also widely expect Apple to introduce a new gadget
next year that they and fans have dubbed the iPhone, which will
combine mobile phone features with the iPod.
"A Zune phone is definitely part of the future of this
brand," said Chris Stephenson, general manager of global
marketing for Zune. He gave no specifics.
Zune, manufactured by Japan's Toshiba Corp., will allow
users to listen to any shared song three times over a three-day
period. It will be preloaded with music from record labels
including Astralwerks Records and Virgin Records from EMI
Music.
Unlike iTunes, the Zune Marketplace will provide users with
the option to either buy a flat-fee subscription to download an
unlimited number of songs, or purchase songs individually.
"There are billions of people on planet earth who listen to
music and (Apple's) sold 50 million gadgets. So we're in this
early phase of digital music and portable entertainment," said
J Allard, who is heading up Microsoft's Zune business.
Shares of Microsoft rose 35 cents, or 1.4 percent, to close
at $26.33 on the Nasdaq, while Apple shares edged down 3 cents
to $74.17.
(Additional reporting by Duncan Martell in San Francisco)
powered by performancing firefox
0 comments:
Post a Comment