The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Analyst: Apple Took Microsoft By Surprise

Analyst: Apple Took Microsoft By Surprise

by , 11:35 AM EDT, September 15th, 2006 - Digg This

American Technology Research analyst Shaw Wu doesn't think that Microsoft's Zune media player poses a big threat to Apple and the iPod, and that pricing and availability information was withheld because Apple's revised iPod caught the company off guard. Microsoft announced the specifications for its Zune music and video player on Thursday, two days after Apple introduced the enhanced fifth generation video capable iPod.

Mr. Wu commented "[Zune] pricing and timing were not revealed likely because our sources indicate that Apple's aggressive pricing at US$249 for its new 30 GB vPod took Microsoft by surprise. We believe Microsoft is re-thinking its pricing strategy amid potential wider losses to stay competitive in the marketplace."

The Zune player specifications didn't offer any features that make the product stand out from the competition. On that point, Mr. Wu said "We remain under whelmed with the much-hyped Zune, which is essentially a repackaged Toshiba Gigabeat, with limited differentiation vs. existing Windows Media devices."

Unfortunately for Microsoft's partners in the digital music player market, Apple will remain essentially unscathed while they take the brunt of the Zune's market impact. Companies like Creative, Archos, SanDisk and iRiver will see their marketshare erode as customers buy the Zune instead of other iPod competitors.

Mr. Wu is maintaining his "Buy" rating for Apple with a target price of $91. Apple stock is currently trading at $73.81, down 0.36 (0.49%).

If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Recent TMO Headlines - Updated December 1st

Thu, 11:42 AM
Apple Original Films Hosts Hollywood Premiere of Will Smith's 'Emancipation'
Thu, 3:00 AM
Music and Video Wrapped and Replayed - TMO Daily Observations 2022-12-01
Wed, 5:26 PM
San Francisco Police Department Robots Can Use Deadly Force, Exempt From Asimov’s Laws of Robotics
Wed, 4:52 PM
Tim Cook and Elon Musk Stroll Around the Duck Pond at Apple HQ
Wed, 4:49 PM
Apple Releases iOS 16.1.2 with Security Fixes and Crash Detection Optimization
Wed, 3:59 PM
Spotify's 2022 Wrapped Experience is Here, Features New Personality Test and More
Wed, 2:59 PM
Apple and Others Face Lawsuits Following Fatal Hingham Crash
Wed, 1:53 PM
Lost, Not Deferred, iPhone 14 Sales, Settled Lawsuits and Then Good News
Wed, 1:26 PM
Court Grants Apple’s $50M Settlement Offer in Butterfly Keyboard Lawsuit
Wed, 12:52 PM
New 'The Greatest' Video Highlights Accessibility Features in Apple Products
Wed, 12:12 PM
Apple's Crash Detection Feature Triggers Uptick in Accidental Emergency Calls from Skiiers
Wed, 12:08 PM
Apple TV+ Gives First Look at Original Series 'Shrinking' Starring Jason Segel and Harrison Ford
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Daily Observations
  • TMO on Twitter!