Microsoft (MSFT) is about to launch its latest version of the Zune multimedia player. To date the company has sold two million units. In contrast, Apple (AAPL) has sold over 150 million iPods.
Microsoft has a chance to kill the Zune with a good excuse. By cutting prices on its Xbox 360 last week, it is putting pressure on the margins of its "devices" division.
Apple Inc. (NASDAQ:AAPL) is trading up marginally ahead of the technology analyst and press conference in San Francisco, but the stock is currently back within about $4.50 of its all-time highs. What is being pushed around all over Wall Street and Main Street alike is a new revamped and souped up iPod.
We’ve already gotten the iPhone, we’ve already seen new PC announcements, we’ve already been given the delayed launch date of the Leopard operating system, and we are still viewing the TV initiative as a hobby as Steve Jobs called it himself. Unless Apple is going to shock the you know what out of everyone with a new unknown and undiscovered product, this iPod revamp makes more than perfect sense. Consumers want it too.
Back in April, Apple said it had sold its 100-millionth iPod. This goal is probably to hit 200 million units if it wants to keep driving the stock. We think this may be more of an iPhone-esque iPod, but without the phone. So we’d be looking for more touch screen and hopefully some more Wi-Fi features. We’ll know in a few hours. Here is what some of our tech friends are saying around the web today:
Business 2.0: wide-screen, touch-sensitive iPod, iPod nano with a larger screen, iPod Shuffle with more memory for the same price….
Engadget: Rick Rubin proclaims "the iPod will be obsolete"
Apple to unleash "The Circle" concept tomorrow?
Newsday.com: What’s coming next from Apple?
CNET: "The iPod is growing up: If Apple really is putting a version of Mac OS X in a new iPod, presumably it has more in mind than showing high-quality reruns of The Hills."
Think Secret: Touch-screen iPod to take center stage
San Francisco Chronicle: What news awaits the Apple faithful?
Speculation centers on redesigned iPods, expanded content offerings on iTunes
After the recent Zune price cuts, you have to wonder if Microsoft (NASDAQ:MSFT) is holding on to this space with looser hands and maybe just as a hobby. And as far as Creative Tech (NASDAQ:CREAF), everyone now only asks "Who?".
Jon C. Ogg
September 5, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he produces the Special Situation Investing Newsletter and he does not own securities in the companies he covers.
Earlier this morning, Wal-Mart (NYSE:WMT) announced the launch of its own "DRM-free" MP3 music downloads. Those wanting the service can download from Walmart.com at $0.94/song and $9.22/album. The new MP3 digital format allows the ability for customers to play music on nearly any device, including iPod®, iPhone® and Zune(TM).
Wal-Mart is one of the first major retailers to offer MP3 digital tracks with music content from major record labels such as Universal and EMI Music, and the launch is aimed to get into the space of Apple (NASDAQ:AAPL) and Amazon.com (NASSDAQ:AMZN). Wal-Mart’s new MP3 music catalog includes hundreds of thousands of songs and albums, and will be continually expanded with additional mainstream and independent music content. Also, Wal-Mart is currently offering special MP3 album pricing on hundreds of album classics.
It used to be that once Wal-Mart went after your space that things became instantly worse for you and your other competitors. But after the Wal-Mart woes of late, they just don’t seem able to wrangle away customers at the same rate. In fact, many may now chuckle at new initiatives because its online presence is still too small to be a major factor.
Steve Jobs and Jeff Bezos probably didn’t call each other up in a panic this morning, and probably won’t be tomorrow either. These stocks are even higher on the heels of RealNetworks (NASDAQ:RNWK) launch of a new digital music company with MTV. We addressed this earlier today. If these were as threatening as they sound then Amazon.com (AMZN) shares might not be up 3.8% and Apple (AAPL) shares might not be up 4% today. Getting the huge established tech predators unseated from a dinner table at their favorite restaurants usually takes more than getting a two-top table in the corner.
Jon C. Ogg
August 21, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
According to Reuters, Australian conglomerate Wesfarmers bought retailer Coles for $18.8 billion, the largest buy-out in Australian history.
Reuters writes that Virgin Media (VMED) is seeking a buyer, and Carlyle Group is considering a $20 billion offer.
Reuters writes that some Apple (AAPL) iPhone buyers have had activation problems getting onto the AT&T (T) network.
The Wall Street Journal writes that Bear Stearns (BSC) may take until July 16 to add up all of the loses from its hedge funds because some of the securities they own are so thinly traded.
The Wall Street Journal says Universal Music may not renew its deal with Apple (AAPL) for a long contract term. It may opt for s shorter deal. Music publishers have been upset about their royalties from the music store.
The Wall Street Journal writes that surveys show the teenagers are more likely to accept ads on social networks if the come in the form of widgets, small interactive software downloads.
The Wall Street Journal writes that Altria (MO) is creating cigarettes aimed at Indonesia, the world’s firth largest cigarette market.
The Wall Street Journal writes that Gap (GPS) is launching a credit card that can earn point for Gap products even if the card is used for charges outside the company’s stores.
The Wall Street Journal writes that music publisher EMI and tech company Snocap have reached a deal so that music artists can sell their albums directly from their own websites.
The New York Times writes that Asia consumer electronics markets are trying to keep from being hurt by the Apple iPhone the way that they were the iPod.
The New York Times writes that Yahoo! (YHOO) is introducing ads targeted by behavior in an attempt to offer a product that its rivals do not have.
The New York Times reports that the Microsoft (MSFT) Xbox Live is being used to market movie and TV show downloads.
FT reports that Kraft (KFT) is in talks with Danone about buying its biscuit unit.
Barron’s writes that Earthlink (ELNK) will probably go through a restructuring to make the company more attractive to investors.
Douglas A. McIntyre
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