Microsoft: iPod to face increased competition

Microsoft says that the iPod will face increased competition from new portable devices before this year’s holiday shopping season. The company is helping electronics makers such as Philips, Samsung and Creative Technology design and test digital music players that will take direct aim at the iPod.

“Come this fall there is going to be a number of devices that get close to competing with Apple’s iPod,” said Erik Huggers, the head of Microsoft’s Digital Media Division. By the second quarter of next year “there is going to be a whole lineup of products that can compete with Apple in industrial design, usability, functionality and features.”

Jupiter Research analyst Michael Gartenberg, however, says Microsoft has a steep uphill battle. “It’s going to take a lot to dethrone Apple,” said Gartenberg. “Apple won’t sit on its laurels and I expect we’ll see another iteration of the iPod for the holiday. Unless Microsoft is really willing to spend the time and effort to get behind a player or a select group of players, it’s not going to happen.”

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