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Microsoft’s much-anticipated music device –Zune – is set to bite a significant chunk out of Apple’s global share of the MP3 market, industry analysts claim. On the eve of Zune’s launch in the US, the iPod maker has been told it needs to make “big announcements” over the coming months if it is to maintain its edge. Part of the problem for Steve Jobs is that iPod users aren’t as loyal to the Apple brand as Macintosh counterparts are, analysts at ABI Research found, after polling 1700 adults. Although based only in the US, the findings show that just 15% of people who own an iPod will not defect to Microsoft’s Zune, when it hits the shelves tomorrow. In contrast, more than half of the adults quizzed wanted to buy a new MP3 player, with six out of ten saying it was “extremely likely” or “somewhat likely” they would choose Zune. For these consumers, Redmond’s new device trumped not just the iPod, but also “other brands” of MP3 player, indicating consumer trust in the Microsoft name. The software maker must however differentiate its MP3 offering, particularly in light of its late entry into the stable, the analyst said. One differentiator, Zune's Wi-Fi peer-to-peer sharing, which Microsoft is playing up heavily, "isn't all that compelling, at least not now," said principal analyst Steve Wilson. "There's a lot more you could do with that capability." The sharing feature will not be available for all songs stored on the device, and works only between ‘Zunes’ in range of each other. In order to get users into the Zune Marketplace, Microsoft says the tracks received can be played a maximum of three times in three days. Users are also prevented from ‘resending’ music. However the appeal of the 30GB media player, presumably not its price tag of $249.99, (£167.99) means trouble ahead for Apple, ABI concluded. Said Wilson: “Given the results… Apple will need to make some big announcements in 2007 if it is to maintain its edge in the industry. “Apple needs a new high-end device that works really well and looks really cool, because other brands are catching up." Although ABI probed consumer attitudes just a month after the spec of Zune was made public, respondents were given a description and photo of the device before issuing their verdicts. Nov 13, 2006 Email this article Printer friendly page Previous Page
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