The reason that any company gets into business is one of economics. If there is room in the market (demand), then companies that can meet the barrier-to-entry will enter (and create supply); that is, if they think they can compete and make money. It is like this for every market that is consumer based.

If only one company were interested in each market, then there would be very few innovations because competition would not exist and, in the end, we’d all have really crappy stuff because there would be no reason for any company to improve their “thing.” This trickles down to suppliers too.

In addition, in order for a company to continue to create value for its investors, it must exploit markets as they emerge. The pmp market, while no longer an emerging one, is still going strong because technology is continuing to improve at an impressive rate. So Microsoft and Apple, along with many others, continue to invest heavily in the pmp market because there is still money to be made, in particular, for the investors.

So, it’s not really about copying a product or an idea (there is a patent system to protect that, whether it works or not is a different topic); it’s about exploiting a market that has yet to run its course.

And…

Since it takes hundreds of millions of dollars to develop a product like the iPod or Zune, it takes companies with the resources of Microsoft and Apple to do it.

The result is that we get really cool toys, which IS the point!!!

Radio is lame. Let me listen to precisely what I want when I want it. iTunes radio was lame.

720p output. Personally I can see how this could be wanted, but at the same time it would be rarely used by me. I don’t want to waste the space on my player for files it can’t even use to its full potential. A home network, flash drive, or hard drive, with an xbox or appletv is much more useful.

Obviously the developer support will be much larger on the iPod touch.

Compatibilty. I’d rather have a player that is supported natively on both operating systems….

Price. I can get a free iPod when I go to university….

We tend to prefer a product that endorses superior functionality. One that includes great features, and the capability of our devices to have the steam to run them. This is something, no matter WHAT you do, that you cannot convince an apple fanboy. S/he will always prefer design to functionality, and bash any device that threatens their ego.

The Zune HD as it appears in the videos and specifications appears to be an excellent device, one which is (and even apple users should admit) superior in hardware without question. But you all must realize, that this is not a new development. Zune, Windows, Windows Mobile, and mostly every other device Microsoft has pumped out over the years has been much more powerful and capable than any of Apple’s products. So why doesn’t the Zune absolutely trump any and all of the iStuff?

Marketing. The one thing that many facets of Microsoft just couldn’t grasp correctly. Not because they are less capable, rather, they haven’t NEEDED to! Microsoft has dominated the computer industry since the dinosaur age, and that’s not changing anytime soon. With the recent boost in Apple sales (which in absolute terms is astonishing, but only pennies in relative terms) Microsoft is slowly getting into the game. They’ll catch their stride in advertising, and when they do, Apple fanboys will once again go into hiding until Jobbs jerks out something else to get people uselessly excited.

The process has already begun. The design of this new Zune is the first (and biggest) obstacle that Microsoft needed to overcome, and they did. The product is sleek and refined, and quite sophisticated looking to boot. The key to marketing is having a marketable product, and the ZuneHD has the looks…All it will take is a well structured marketing campaign.

It may not be six months, a year, or even two years. But mark my words, if Microsoft doesn’t find a way to screw this beauty up (which i think they’ve learned their lesson) then the clock is ticking on Apple’s hold on the PMP market…tick tock doc..