Steve Jobs For Newsweek: I’m Not Impressed by Zune

by Playfuls Staff | 16th October 2006

Steve Jobs For Newsweek: I’m Not Impressed by Zune Microsoft is trying its luck in digital music market with a portable player, which will be available in November. Microsoft’s iPod killer, called Zune, will feature a 30 GB hard disk, a 3 inch LCD screen, an FM tuner. The retail price of Zune will be $249.99. Zune is considered as the most important [more] competitor for Apple’s iconic player, iPod. you may know already all that, but what you are going to find out is what does Steve Jobs have to say about Zune.

In an interview with Newsweek's Senior Editor Steven, Apple's CEO Steve Jobs says he is unconcerned that iPod might lose its cache because it’s too popular. "That's like saying you don't want to kiss your lover's lips because everyone has lips. It doesn't make any sense," he tells Levy. "We don't strive to appear cool. We just try to make the best products we can. And if they are cool, well, that's great." Jobs talked to Levy on the occasion of the fifth anniversary of Apple's iPod, and cooperated with Levy's upcoming book about the iPod, "The Perfect Thing,"

Jobs also said he is unimpressed with Zune, Microsoft's answer to the iPod, which allows users to exchange songs. Zune promises wireless connection, meaning that two people, who possess those kind of players, will be able to exchange among themselves images, music or play lists without having to use any other equipment. There is of course a limitation; the transferred songs can be played only for three times during the next three days.

"It takes forever," says Jobs. "By the time you've gone through all that, the girl's got up and left!" Jobs add that while the iPod and iTunes will evolve, music will always be the core. "It's hard to imagine that music is not the epicenter of the iPod, for a long, long, long, long, long time ... Music is so deep within all of us, but it's easy to go for a day or a week or a month or a year without really listening to music. And the iPod has changed that for tens of millions of people, and that makes me really happy, because I think music is good for the soul."

Jobs explain the decision to keep prices at the iTunes store at 99 cents a song despite pressure from the record labels to raise them. If iTunes gave into that pressure, says Jobs, "many [users] will say, 'I knew it all along that the music companies were going to screw me, and now they're screwing me.' And they would never buy anything from iTunes again. We would never recover their trust."

Last month, Microsoft revealed that its  player will be accompanied by a music service, called Zune Marketplace, which will let people buy songs individually for about 99 cents or to subscribe for $14.99 a Zune Marketplace will offer 2 million-plus songs at launch.

With its new player and music service, Microsoft hopes to challenge the iPod + iTunes domination, but it won’t be a simple task. One by one, Creative, Samsung, Sony and others tried to compete against this iPod phenomenon each with their own players, more or less different from the famous iPod. Bigger storage capacities, more colorful display options, longer battery life compared to the iPod – decided to attack Apple's player, the producers tried every option and possibility hoping to hit the jackpot.

And Microsoft is aware that it’s going to face a tough competition. Speaking about Zune, when Microsoft revealed the technical details, Jim Allard warned not to expect the Zune to challenge the iPod overnight. "The digital music entertainment revolution is just beginning," Allard said in a statement. "With Zune, we are not simply delivering a portable device; we are introducing a new platform."

The Zune follows a successful Microsoft template for challenging market pioneers by entering the market late, relentlessly improving its products and using its huge cash reserves to drive down prices.

The most recent example of the success of this strategy is the Xbox 360 video game console, which is now taking market share from the Sony Play Station four years after Microsoft entered the lucrative market.


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