Apple's video iPod pricing catches Microsoft by surprise
Microsoft on Thursday official unveiled its Zune digital media player but refused to provide pricing details, likely because it was caught off-guard by Apple Computer's aggressive new pricing on its video iPod line, one Wall Street analyst says.
"Microsoft formally announced its Zune portable media player, with specs in-line with Toshiba FCC filings," American Technology Research analyst Shaw Wu told clients on Friday. "However, pricing and timing were not revealed likely because our sources indicate that Apple's aggressive pricing at $249 for its new 30 GB video iPod took Microsoft by surprise."
It has long been rumored that Zune, which also features a 30GB hard disk, would retail for $299. But Apple's unparalleled component supply pricing is allowing it to price new iPod models at levels in which no other corporation could both compete and turn a profit.
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