Looking to Take On Apple's iPod, Microsoft Plans Its Own Hand-Held Player
Microsoft has been developing its own hand-held music and video player to challenge Apple Computer's iPod and expects to have it in stores in time for the holiday season, entertainment industry executives briefed on the company's plans said last night.
Context & Ripple Effects
Microsoft's reported holiday-device plan follows Sony's effort to ready an iPod rival, making 2006 a clearer test of whether Apple can be challenged by established electronics and software companies rather than by isolated player makers. The report is unconfirmed, but it places Microsoft directly in the portable music-and-video contest.
First-order effects
- Microsoft's reported move would put it in direct competition with Apple for holiday buyers of hand-held music and video players.
- Apple faces a prospective new challenger whose product is aimed at the same iPod-led category, while Microsoft takes on the costs and execution risk of a consumer hardware launch.
Second-order effects
- Sony's rival effort and Microsoft's reported plan raise the pressure on each company to distinguish its player rather than compete on category presence alone.
- Retailers and entertainment-industry partners would gain another potential distribution point for portable music and video during the holiday season.
Third-order effects
- If multiple major vendors sustain these launches, the portable-player market shifts from an iPod-centered category toward a contest among broader consumer-electronics ecosystems.
The trend: Established technology companies are converging on the iPod's portable-media market, turning a device category into a strategic platform battle.