Zune is, as you know by now, Microsoft’s answer to Apple’s iPods and as expected MS held nothing back when it presented the portable media player and the whole Zune concept. But if there was something missing to complete the concept it was the price of the player and speculations about why it chose not to reveal a price have been going around. At least one analyst now believe he has got the answer– Apple iPod 30GB. Apple’s launch of its updated iPod series happened just a a few days before Microsoft’s revealing of Zune and except from updated specifications Apple also lowered the price of its introduction model at 30GB.
This may have come as a surprise to Microsoft as it has put the price of Zune, which also has 30GB of storage, par to Apple’s model. The question is now how much Microsoft is ready to lose and/or it is ready to sell Zune at the same or even lower price as Apple iPod 30GB. The alternative could be that it simply expects the superior features to make consumers pay up for Microsoft’s player rather than chosing an iPod.
“The iPod’s new low price throws a wrench into Microsoft’s plans. The company now needs to decide whether it can afford taking a second large financial risk by sticking to its previous pricing strategy, or hope its increased feature set can buoy the Zune at a price equal to or slightly higher than the iconic iPod.”
