Yesterday Dan gave us an informative update on the pricing of the Zune, revealing Microsoft’s plan to lose money. But a this may not have actually been Microsoft’s plan. Instead it seems to have been induced by Apple. With Apple’s pricing of the 30GB iPod at $250, Microsoft had no choice but to price their Zune similarly, to remain competitive. As Shaw Wu writes for American Technology Research:
We believe Microsoft not pricing lower demonstrates Apple’s under-appreciated supply chain strength where Microsoft will lose money. To us, the key question is whether Zune priced in-line with a video Pod will take share with its bulkier form factor, same Windows software currently available from 15-20 vendors, and inferior battery life.
Meanwhile each Zune player sold costs MS about $50, while each iPod sold makes Apple about $150. Goodluck Microsoft, you’re gonna need it.
[via MacNN]
