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(MSFT - Get Report) just took an aim at
(AAPL - Get Report) with its Zune music player, but Apple is still the leader of portable music, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.
First of all, compared to Apple's iPod product, the Zune is too big and bulky, he said. And second, it comes in three colors, one of which is brown, a hue that is not likely to be popular among the younger set.
Reason No. 3 why Cramer believes the Zune is likely to fail is that its music store is not good compared to iTunes, which is easy to use.
In addition, although he likes Microsoft, Cramer said the company has been unable to reach the right demographic, which is the younger generation, whereas this demographic loves Apple.
He said he finds the Zune, which doesn't even have an original design, "pathetic." Moreover, the rankings for the product, which just
, are much lower than expected.
However, none of this is to say Cramer doesn't like Microsoft, because he does. He said he believes the company has done well and people should like it because of its new Vista operating system, not because of the Zune. However, it is no competition for the iPod, Cramer said. The iPod is just one reason among many to own Apple.
"Its laptops are very popular with the college generation," he said. "When you buy a Mac, you are buying a beautiful, easy-to-use machine."
Apple is "the most differentiated brand and only has a tiny bit of market share," Cramer continued, adding that he has never seen an empty Apple store.
Also, when Microsoft launches Vista, people might get frustrated with having to update their systems and turn to Apple.
In the end, "Apple is an iPod story," which is never-ending, he said. Plus, it has "a ton of financial flexibility," which could translate to buybacks and dividends in the future.
"It could go to $100 by the end of the year," Cramer said. "Apple is invincible thus far." Apple closed at $84.05 on Wednesday.