This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Report: Microsoft Plans iPod Rival by Christmas

Microsoft (MSFT - Get Report) plans to release a portable digital media player by the holiday season this year that will rival Apple Computer's (AAPL - Get Report) iPod, according to published reports.

Unlike the iPod, Microsoft's player will incorporate a wireless radio that will allow users to download songs and videos directly without connecting to a computer, according to the reports.

To complement the new device, the company also is developing some new media software that could potentially integrate an online music store similar to how Apple's iTunes works, according to Reuters. To promote the device, Microsoft plans to spend "significant marketing dollars," Reuters reported.

A Microsoft representative declined to comment. Representatives for Apple did not return calls seeking comment.

Rumors of Microsoft unveiling such a device have been floating for weeks. Industry analysts could not confirm the published accounts but said they are plausible.

The move would mark a major change in strategy for Microsoft and could mean a significant threat to Apple's dominance in the digital music market.

Microsoft has previously attempted to compete with Apple by licensing its Windows Media software to various partners. Dell (DELL), for instance, offers music players that play Windows Media encoded songs which customers can download from stores such as that run by Napster (NAPS).

But that strategy has been a failure to date for both the Microsoft's service and hardware partners. Apple's iPod players hold more than 70% of the digital music player market in the U.S. and lead in worldwide market share.

Mike McGuire , an analyst with Gartner, said Microsoft certainly has the ability to create a version of the iPod, but success in that market would not be a slam dunk. "Putting the hardware and the software together in a meaningful way will be expensive and difficult," he said. However, he also noted that Apple dislodged Sony's (SNE - Get Report) Walkman from its position as the de facto standard for digital music, and it would not be impossible for Microsoft to do the same to Apple.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
AAPL $112.34 4.29%
MSFT $43.36 3.68%
SNE $25.47 2.37%
FB $89.89 3.05%

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs