Jupiter analyst Michael Gartenberg, who was one of the analysts briefed on the Zune player prior to the official announcement, lists some of the difficulties and challenges Zune will face in the market:
— “Differentiating with features like WiFi, that few mainstream consumers want and serve as a something that not only boosts for the bill of materials but also kills important features like battery life.” Wi-Fi is not what consumers want, it is what it enables is what they do want.
— Branding challenge: “It’s going to be hard for them to create the same level of cachet that Apple has with the iPod”.
— The platform challenge: Competing against the iPod ecosystem, with third-party devices/add-ons, will be very tough to compete against. “MSFT will work hard to make sure that they fill some of the gap directly with first party stuff, but this is one area where consumer choice goes a long way in making the platform a success”.
Our full Zune full coverage is here.