Gates: We will challenge iPod

news.com ^ | February 11, 2006 | Reuters

[stainlessbanner]

REDMOND, Wash.--Microsoft and its hardware partners will continue to develop new digital media devices aimed at challenging the dominance of Apple Computer's ubiquitous iPod music player, Chairman Bill Gates said on Friday.

"I don't think what's out on the market today is the final answer," Gates said, speaking to a group of minority students. "Between us and our partners, you can expect some pretty hot products coming out over the next few years."

The Microsoft founder praised Apple's iTunes music store and said the software giant was talking with hardware partners to create media devices that can be less expensive and easier to connect and can handle pictures and video better.

Gates said the market share for digital music players compatible with Microsoft software is around 20 percent, a figure that is lower than he would like.

Microsoft's strategy has been to allow various device manufacturers to create players that would be compatible with its software, arguing that it offered consumers more options.

However, BusinessWeek reported last week that Microsoft is mulling its own media device in an effort to cut into Apple's nearly 70 percent U.S. market share. The company declined to comment on the article at the time.

Gates did not disclose any plans for a Microsoft-branded device on Friday and alluded often to working together with partners for future media devices.

[antiRepublicrat]

Ipod is good DESIGN not technology. The Ipod is 100% marketing and packaging.

You can't consider design as technology? The click wheel, the UI, the extremely tight packaging to achieve the small sizes? The iPod is where it is because it was the first mp3 player on the market that was really a consumer electronics device instead of a geek toy. Sure, others followed, but nobody's caught up yet.

[pageonetoo]

so apple is trying to patent a stripped down Tablet PC?

With computers getting thinner and laptops eventually merging with tablet PC's. That seems too limited a product.

From what I have read, they intend to kep a similar size, just increase the screen to cover it. It will be a pocket PC, designed to provide a marketplace for their video and audio iTunes. People are already downloading to watch their faves, so it will capitalzie on it, I trust. Gates and Co are coming late to this party.

IMO, the future of AAPL is in services-added computing, not just hardware...

Before Christmas, Wallie World sold the iPod Shuffle (512) for $98. It is now $68! My wife has a 30g video iPod, and an older 20g that now sits. I have a nice Bose system hooked to my Denon Amp, and don't like earpieces! I would rather blow my mind "the old-fashioned way"!!

[winner3000]

Yes, but Tuco never met Gates. Gates has a history of, with a few words, destroying entire software genres just because Microsoft MIGHT compete in them. Software companies have had a devil of a time raising financing because investors are always scared that Microsoft might come in and destroy any market potential they may have.

In this instance, Apple is already successful. However you'd better believe that threats from Microsoft do affect their market cap in the stock market.

[martin_fierro]

	iPod
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[1Old Pro]

Are these other companies just hoping that people will go to a store that doesn't carry iPods and settle for their player?

People will buy something else when something else is better. Ain't capitalism grand.

[stainlessbanner]

'bout time you got here, fierro!

[dyed_in_the_wool]

because there are so many MP3 manufacturers and because the cause of the damage is well known, I don't think they should be targets of tort law suits.

I think tobacco companies said the same thing once.

[longtermmemmory]

I think the next big step is to have "fold out screens"

Something that is openend with the convenience of a shirt pocket notepad.

[Final Authority]

There is a big difference between the tobacco companies and MP3 player manufacturers, that is, the tobacco companies denied, based on their own research, that there was ever any link between smoking and cancer, and, that smoking or nicotine was ever addictive. The fact that they covered up facts puts them in a different position than a business that either recognizes the facts, like falling off a ladder can be painful, or actually lies about what they know are facts while intending to deceive.

[Richard Kimball]

bump for later

[Bush2000]

The really cool thing about FreeRepublic is that idiots can say anything that pops into their heads. It makes for great comedy...

... said the idiot.

[Mr. Blonde]

I prefer to own my music. I would rather spend .99 cents and own it than whatever Napster costs and have to redownload it.

[Mr. Blonde]

Granted I have only messed with a limited number of non-iPod products and they all paled in comparison. But even if one happened to be superior, how will anyone know if they don't spend any money on advertising?

[Glenn]

... said the idiot.

Gosh. I didn't get you anything for Valentine's Day. Shame on me.

[big'ol_freeper]

Bring it on toad!!!