Apple’s pricing on the updated fifth-generation iPods has caused Microsoft to rethink the price point for its Zune media player, according to one analyst. “Microsoft formally announced its Zune portable media player, with specs in-line with Toshiba FCC filings. However, pricing and timing were not revealed likely because our sources indicate that Apple’s aggressive pricing at $249 for its new 30GB iPod took Microsoft by surprise,” American Technology Research analyst Shaw Wu said in a research note today. “We believe Microsoft is re-thinking its pricing strategy amid potential wider losses to stay competitive in the marketplace. We remain underwhelmed with the much-hyped Zune, which is essentially a repackaged Toshiba Gigabeat, with limited differentiation vs. existing Windows Media devices.” Microsoft was widely expected to announce a $299 retail price this week, but following Apple’s price cut on Tuesday on the 30GB iPod, the company declined to offer pricing or a release date.
Microsoft caught off-guard by new iPod pricing
By LC Angell
LC Angell
LC Angell was a senior editor at iLounge. Angell is known for her work on various aspects of the Apple ecosystem, including iPhone, iPad, and iPod. In his role at iLounge, Angell was responsible for a wide range of editorial content, including reviews, buyer's guides, news, and features.