Zune No Threat to iPod... For Now
The $250, 30GB player, for instance, allows owners to wirelessly swap songs. But this feature restricts swapped songs to being played three times in three days before expiring. Reports have also surfaced that the Zune isn't compatible with Windows Vista. However, the Zune has earned good marks for magnetic headphones, clear display and (perhaps most important) good sound.
Microsoft hopes to sell 1 million Zunes by the middle of 2007. However, this would hardly put a dent in the iPod's market, as Apple sold 39 million iPods this past year. Meanwhile, electronics websites show the popularity of the Zune far beneath that of other MP3 players. However, Microsoft appears optimistic and committed to the Zune. Bryan Lee, corporate vice president for Microsoft's entertainment group, calls the projected sales, modest as they may seem alongside iPod figures, "pretty awesome."
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