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Zune: Why Apple Should Care

September 30th, 2006

At first glance, Zune looks like too little, too late, but as more news comes out, it’s something Apple should definitely be keeping their eye out for and have something killer waiting in the wings (I’m sure they do). Reasons:

Microsoft if nothing else is persistent. It’s a cliche that their products aren’t any good until 3.0. But that’s because they release 1.0 and improve it. Zune may not bite into iPod sales right away, but it will be a well-backed presence until one day, Apple messes up and Zune is there to pick up the lost customers. Microsoft has done this game before with Windows, Internet Explorer, Pocket PC, XBox, and come out on top.

Although Apple has an outstanding software suite with Macs, iLife, and iPods, Microsoft has Windows, XBox, and now Zune. Slightly different pieces on the chess board, but think about how many millions of PC users and XBox users are out there versus Macs. No wonder Apple is trying so hard to get PC iPod users to switch to a Mac. There will soon be a day when the salesman at Best Buy doesn’t know if the iPod works with the PC and hands grandma a Zune.

History did not treat Apple well the last time they had a huge market share and a “closed” system. Many people have criticized Apple for not opening up their Mac OS back in the day and losing the OS wars to Windows, who went the clone route. There seems to be a backlash of sorts brewing against Apple and their iTunes Music Store DRM. It’s a tricky game to play, and luckilly Apple has a large installed base of users with content bought from them that won’t transfer to the Zune, but there will come a time when people ask “Why?” and blame either Apple or Microsoft. If the Zune is really cool, people will blame Apple, and vice versa. At this point, Zune seems just as DRM saddled as the iPod, but this may change.

I’ve said repeatedly that my fantasy iPod would be one with wireless so you could browse other people’s iPods and listen to their music. I wouldn’t even care so much about the ownership of said files, if that bugs the RIAA.

So it’s kind of annoying to see that the Zune is getting both wireless and a larger screen before the iPod. I’m not saying I’m trading my Video iPod for a Zune, but Apple better be working on some future iPod (or the iPhone) that will blow away Microsoft.

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folder Categories: Apple, General, Technology :: ::

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  • Finally some real market insight instead of they same old "iPod rules" banter. The OS correlation is important. The marketing budget is important.
  • Leighsah
    The zune doesn\\\'t have a bigger screen tha the iPod and both share the same 320x240 resolution
    http://www.gizmodo.com/gadgets/portable-media/zune-vs-ipod-about-the-same-size-both-stuck-in-43-200875.php

    Perhaps more research before you get annoyed?
  • Ah, good link. Thanks for the info about the screen.

    If Paris Hilton becomes spokesmodel for the Zune, then I'll get really annoyed.
  • I'm interested in your ideas because I'm writing about the Zune too.

    Unfortunately, I think you have some errors in your logic:

    - its a myth that Apple had a huge share of the PC market and lost it because of Windows. Actually, Microsoft pioneered many new markets with the PC, leaving Apple in the home/creative niche they were already in. Apple didn't lose market share, they just didn't move into dumb terminals and cash registers and ATMs.

    - the only backlash about Fairplay is theoretical. Zune, PlaysForSure and everything else Microsoft has touched has been critisized for draconian DRM that serves to destroy the product.

    - prior to the iPod becoming "Wireless" it would need iTunes built in. Currently, the iPod is not really a computer, but more of an appliance. The Zune is a full WinCE handheld, with all the baggage AND features that entails. They are very different strategies.

    www.roughlydrafted.com
  • Hi Daniel,

    Point #1 taken. Perhaps I remember the Apple iie and early Mac days too fondly.

    #2: Apple's been lucky so far, walking the line between intrusive DRM and still letting people rip their own CDs. However my argument was that the DRM could eventually be an issue to people wanting to switch. It's the product that is seen as inferior that is blamed for having limited DRM. When a product is highly desired, people seem to overlook the DRM.

    #3: You are right, however I'm sure Apple is looking to make the iPod more powerful. Your point makes me wonder if we're looking at another Palm / Pocket PC type situation. Palm was critisized for wimpy handhelds while MSFT went the overpowered handheld route.

    Makes me wonder, what is the relationship between Zune and Origami? I think I need to do some research on that.
  • Hey,

    Sorry to hear about the digg effect taking down the site...I submited the story thinking it was a cool look at some of the reasons why Zune will eventually succeed ( I also loved the fact that you linked to my site).

    Thanks,

    -Charlie
  • Eh, that's okay. If in fact it was a digg effect, I need to look into setting up this blog a bit better so it can survive such eventualities.

    I'll bookmark your site for the future, as a thanks.
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