Apple Inc (AAPL)

[fmikehugo]

08:23 AAPL Apple Computer: Microsoft's (MSFT) Zune music player poses only a modest threat to the iPod - Needham (60.72 )

Needham notes that Microsoft (MSFT) announced the long-rumored year-end introduction of Zune, its music player that copies Apple's (AAPL) iPod. Zune should enjoy some success because of MSFT's marketing muscle. But the big losers are likely to be MSFT's partners who have standardized on Windows Media Player. AAPL should be relatively immune. MSFT is great at copying but it trails AAPL badly in innovation. And it does not have a genius like Steve Jobs leading the parade. MSFT will undoubtedly gain some market share given its huge marketing muscle and ability to sustain losses indefinitely. AAPL should escape relatively unscathed. Given AAPL's focus on easy-to-use, seamlessly integrated products and its uncanny understanding of the consumer, firm believes MSFT will be forced to forever play a catch-up.