In today’s (Sunday) Ads, a noticeable price in the MP3 section can be found. The price for the reasonably new Microsoft Zune has dropped to incredibly low levels, relative to its competitor’s product, the Apple iPod. Originally released at an MSRP of $249.99, the new price is at $199.99, a clear savings of $50. The new price drop could spell out one of two things.

The Zune could currently be suffering from the competition between the iPod market share. The iPod still has a great hold on the market, and an incredible ease of use associated with connecting to Macs or Windows through iTunes. The Zune on the other hand doesn’t offer dual-platform universality and tends to be lumped with the Microsoft stereotype of flawed products, which have been heavily associated with the introduction of Apple’s Ads featuring Mac and PC. The duet consistently features the two talking about the differences and the business only attitude of the Windows platform. Ultimately, the current negative sentiment behind the Windows system may be hindering profits and sales revenue from the Zune.

The other consideration may be a new Zune product in the near future. For some time, Microsoft has been rumored to be working on an upgraded Zune or a Zune phone. However, the plans for an upgrade or phone are still unconfirmed by Microsoft. If product inventories begin to decline, it may be a sign that a new product is on its way, and a new era for Microsoft products.

Despite the possibility of declining sales and revenue for the Microsoft Zune, it’s hard to deny the interesting and futuristic technology currently being used. A competitive 30 GB hard drive, wireless sharing capabilities (despite being limited by record labels), 3-inch screen, and a built in FM-Radio. All of which, except for the hard drive capacity, are unmistakably absent from the Apple iPod. The future of the Zune is somewhat up in the air, but with the success of the Xbox, and the understanding that it takes quite a bit of advertising and time for the success of a new product, we could see a continued push for the Zune by Microsoft. Until then, wait on any purchases of MSFT. It’s too big of a gamble, and in a previous article I wrote, I mentioned how much of a strain Steve Ballmer is putting on Microsoft stock.

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This entry was posted on Sunday, March 25th, 2007 at 11:25 pm and is filed under Apple (AAPL), Microsoft (MSFT). You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.