Microsoft rolled out its latest iteration of its flagship music and media device recently with some decent hardware and software upgrades — including the ability to stream music over the Web to a PC. The Zune can also link to a television. Apple's Touch can do neither.
The Zune should capture more share will the refresh cycle, analysts say, however, it still faces an uphill battle against Apple's iconic iPod, which accounts for a commanding 70% of the overall pure mobile-media player market in North America by some estimates.
Moreover, he said in a Sept. 15 note to clients that the new Zune is launching into a declining standalone MP3 market with users shifting MP3 use to Smart phones.
iPhone has a huge, perhaps unassailable, lead in Smartphones and an easy upgrade path from iPod [iTunes, account info, content, apps all transition easily] whereas Zune — at this juncture — remains a standalone strategy into a shrinking market.