Revival of Microsoft's (MSFT) Zune Could Topple Apple (AAPL)
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Price: $397.31 +3.22%
Overall Analyst Rating:
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EPS Growth %: +16.2%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
EPS Growth %: +16.2%
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Microsoft (Nasdaq: MSFT) might be able to enter successfully into the tablet market-sphere, toppling rivals Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) in the process.
And Zune's going to be their vehicle to do it?
In a CNET article today, one writer explains the characteristics the potential "Zune tablet," or "Zu-blet," must possess in order to challenge the top-ranking.
Here are some key points to consider:
Microsoft stock closed 0.47 percent better today, to $25.61. (P.S. - that's nearly the exact same place that it was at over ten-years ago. Microsoft sure has patient investors.)
And Zune's going to be their vehicle to do it?
In a CNET article today, one writer explains the characteristics the potential "Zune tablet," or "Zu-blet," must possess in order to challenge the top-ranking.
Here are some key points to consider:
- Microsoft needs to drop the "Windows" name, more from a marketing perspective than anything else. CNET comments it might be a fine OS, but the stigma associated with the Windows name may prevent adoption.
- Microsoft needs to be the sole hardware manufacturer. CNET notes that the Zune HD is a nice-looking device, and just like criticism surrounding Apple's "oversized iPod," there's no reason not to make a bigger version of an already established design.
- Like iTunes, Microsoft should stick with Zune everything. CNET said if folks grabbing Windows computers would have gotten used to the integration of Zune earlier, it would be a smooth transition into a Microsoft tablet.
- Full Xbox, Xbox Live, and whatever the next generation of Xbox is, integration. Xbox is already a formidable player in the gaming atmosphere, and integration through a tablet would knock Apple's iPad off the charts, according to CNET.
- Decent apps are already available for Windows Phone 7 and Xbox Live, so work to integrate those out of the gate. Make access to Office Web apps easier.
- Pricing needs to be in line, if not a little better, than the iPad. There's little room for variance here, as the market moves into the second full year for media tablets, most consumers are becoming more familiar with their uses and what pricing should be attached for what features.
- It needs to be the same size as the iPad. Again, for the reason mentioned above, and the potential to swap accessories between the Zune and iPad (and others, we're assuming).
- Use standard ports versus a custom connector. CNET says that the three should be: microSD, Micro-HDMI, and Micro-USB. The micro dimensions would allow for better aesthetics and more design.
- Allow for over-the-air updates and syncing, something that the iPad doesn't do currently. The author also recommends to add near-field communication as well.
- Put Adobe Flash on the thing, but allow users to toggle it. Flash uses up a good chunk of battery, and users don't always need to have it on. The option to flip it on or off would be crucial.
Microsoft stock closed 0.47 percent better today, to $25.61. (P.S. - that's nearly the exact same place that it was at over ten-years ago. Microsoft sure has patient investors.)
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