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Zune HD price leak: $100 less than Apple iPod touch

post #1 of 153
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A temporary price listing for Microsoft's upcoming Zune HD showed the device at $290 for its 32GB offering, a cost more than $100 cheaper than the comparable iPod touch model from Apple.

The prices, listed at Amazon, also show a 16GB model for $220, or $79 cheaper than the 16GB iPod touch. The 32GB iPod touch retails for $399. The listing was captured by PC World. The devices remain listed at Amazon, but without any prices.

The Amazon Zune HD prices corroborate with alleged internal information from retailer Best Buy, which, according to Gizmodo, also showed price points of $220 and $290.

Microsoft is attempting to position the Zune HD as a direct competitor to the iPod touch, even offering multi-touch capabilities and Web browsing on its 3.3-inch screen. The device will also, via a dock, output 720P high-definition video and includes an internal HD radio. The Amazon page also said the Zune HD will play games.

While the lower price point might seem to position the device as a strong alternative, Apple could change the price of its iPod touch offerings well before Microsoft's touchscreen competitor launches. Apple is expected to launch new iPods, perhaps with cameras, at an anticipated event this September.

Each year since the iPod touch was released, Apple has also doubled the media player's maximum capacity. If that pattern were to continue, the iPod-maker would offer a new 64GB capacity this fall.

The Zune HD prices were temporarily listed at Amazon | Source: PCWorld

The Zune HD also recently received regulatory approval from the Federal Communications Commission, exposing its NVIDIA Tegra chip and Windows CE roots. While the device's price points may now be known, the Redmond, Wash., company has yet to reveal a launch date for the product, only stating it will debut this fall.

post #2 of 153
Until, like, three weeks from now when the new iPod Touches come out.

Edit: responded to headline without reading AI commentary
post #3 of 153
Quote:
Originally Posted by AppleInsider View Post

A temporary price listing for Microsoft's upcoming Zune HD showed the device at $290 for its 32GB offering, a cost more than $100 cheaper than the comparable iPod touch model from Apple.

Considering that the 32GB iPod Touch is almost a year old, Apple could probably sell it for $100 cheaper now. It doesn't really matter anyways, Apple will either release a 64GB iPod Touch in it's place or drop the price in September.
post #4 of 153
This is good news for everyone who wants to hold out for an ipod touch. It MIGHT mean Apple will respond by lowering their prices. I think we might see what we saw with the iphone, where today's ipod touch model will be lowered in price, and the new model will cost what we see right now.

Either way though, that's a decent price for what seems to be a good competitor to the ipod touch. Is the app store worth 100 bucks? To some it is, to some it isn't. At least now you're not paying the same for less. (We'll see in a few weeks though lol)
post #5 of 153
the Tegra GPU in it is supposed to be very nice. Microsoft's one advantage is that the Zune HD is new and doesn't have the installed base of the iPod Touch. they can pay developers to make nice graphically intensive games that look much better than the current ipod games simply because everyone is still coding for 1st gen Apple hardware due to the installed base

I did see one game optimized for the 3G S, but all the did was add some colored lighting and shadows to the 1st gen graphics. did look kind of nice though
post #6 of 153
Quote:
Originally Posted by AppleInsider View Post

A temporary price listing for Microsoft's upcoming Zune HD showed the device at $290 for its 32GB offering, a cost more than $100 cheaper than the comparable iPod touch model from Apple.

It's a given, I think, that the next 16GB iPod touch will be at most $229. The open question is will Apple move down to $199 to pressure MS's margins, like they did with iPod vs. Zune. MS may be big but Apple, as the biggest NAND consumer, gets better pricing on NAND flash than MS.

It's also a given that Apple will introduce the next iPod touch at least by Sept 15, and more likely, by Sept 9. The open question is will Apple have the intro before Labor Day, as some have rumored.

Finally, why oh why does the Zune HD home screen not fit the words "marketplace" and "more" within it? (I assume "more" is the last item on that list.) I know they want to make the touch area big enough to easily touch, but it just looks ugly.
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post #7 of 153
Apple buys NAND from Toshiba. Intel is also a big NAND producer along with a few other companies.
post #8 of 153
They also don't have to price in an OLED display. How can MS be making money from this thing at that price?
post #9 of 153
I have to admit it, MS have done a great job on the Zune HD. I'm impressed! Now Apple - lets see you make something 2x better for us
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post #10 of 153
Quote:
Originally Posted by mark2005 View Post

It's a given, I think, that the next 16GB iPod touch will be at most $229. The open question is will Apple move down to $199 to pressure MS's margins, like they did with iPod vs. Zune. MS may be big but Apple, as the biggest NAND consumer, gets better pricing on NAND flash than MS.

It's also a given that Apple will introduce the next iPod touch at least by Sept 15, and more likely, by Sept 9. The open question is will Apple have the intro before Labor Day, as some have rumored.

Finally, why oh why does the Zune HD home screen not fit the words "marketplace" and "more" within it? (I assume "more" is the last item on that list.) I know they want to make the touch area big enough to easily touch, but it just looks ugly.

Great Points, but I don't think the issue of NAND pricing or availability will have any impact at all in this situation.

The difference between Apple's NAND pricing and whatever MS gets is not that much and can be easily absorbed by a competitor like them who's hell bent on getting some traction. they are not going to destroy their chances at competition by quibbling over small change like that.

Availability of NAND in general would have a bigger impact on a true competitor, but MS sells Zunes in such ridiculously low numbers (and only in one country), that the constraints Apple puts on world supply are not going to affect MS much either.
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post #11 of 153
I think it is too little too late for the Zune. While I would never wanted to be so naive as to say that there could never be another paradigm shift, I don't think it is going to come in the form of a Zune!
post #12 of 153
Can Apple make a profit selling at those price point? Apple doesn't have a monopoly to fund money losing products. Apple can't afford to sell money losing products like the Zune which was introduced in 2006 and has lost money ever since.
post #13 of 153
Quote:
Originally Posted by hdasmith View Post

They also don't have to price in an OLED display. How can MS be making money from this thing at that price?

Could be price subsidization on the part of MS. Offset losses in one part of the organization by using the profits from another.
post #14 of 153
Quote:
Originally Posted by chronster View Post

This is good news for everyone who wants to hold out for an ipod touch. It MIGHT mean Apple will respond by lowering their prices. I think we might see what we saw with the iphone, where today's ipod touch model will be lowered in price, and the new model will cost what we see right now.

Either way though, that's a decent price for what seems to be a good competitor to the ipod touch. Is the app store worth 100 bucks? To some it is, to some it isn't. At least now you're not paying the same for less. (We'll see in a few weeks though lol)

As other people have stated, the iPods are coming up on their yearly refresh. A new 64GB touch will likely be sitting at the current 32GB pricepoint after the refresh, and the 32GB might move down to the 16GB pricepoint, making it cheaper than the Zune. I hope for Microsofts sake, they anticipated such changes, because that is basically what Apple does every year. Either way, we can't compare the new Zune and its anticipated prices against the current iPod touch and its prices as those are not the iPods the Zune will be competing against.

Edit: Looking at the prices again, moving the 32GB touch down to the 16GB price point (which will likely happen if a 64GB touch comes out) would make it about the same price as the 32 GB Zune, not cheaper
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post #15 of 153
Quote:
Originally Posted by jetlaw View Post

I think it is too little too late for the Zune.!

First off..."$100 cheaper than the comparable iPod" is incorrect guys. The Zune from the moon, that is, the 'zoon doobee dizcontinued' doesn't COMPARE to any Apple iPod! Sad choice of words there. Secondly, any cheaper price for any MicroSoft products is a "frustration discount", because you have to connect it to a PC and deal with circular Wizard panels and endless, "are you sure?" boxes!!! LOL. It'll be gone zoon enough! And yes, the newest iPod, after the back-to-school give away, will be twice as great and powerful as the current models. History repeats itself! (the only reasonable explanation that BallMur doesn't have an iPhone is that he is stubborn and fat headed. And, because he is used to using Windows, he doesn't understand speed, ease of use and relaxing while using an electronic device)
post #16 of 153
I think it's kind of funny how the only two things that Zune has over iPod that could be considered iPod "missing features" (things that Apple's customers would actually like to see), are not being touted at all in the marketing of the Zune HD so far. By this I'm referring to the built in "social" and the OLED screen.

The secret of good competitive marketing is to either ignore or lie about the things your product is missing and focus on the few things that yours has that the other one doesn't. The OLED screen is massive but I haven't heard it even mentioned in any of the product demos you can find online.

The fact that Apple products mostly appeal to lonely friendless elitists who don't socialise much is also a massive point against the Apple ecosystem that should be exploited, but no one seems to bother about Zune's "social" anymore either.

Microsoft may be a "business giant" but they've always been dumb as a puppy and twice as clumsy when it comes to marketing.
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post #17 of 153
Quote:
Originally Posted by chronster View Post

This is good news for everyone who wants to hold out for an ipod touch. It MIGHT mean Apple will respond by lowering their prices. I think we might see what we saw with the iphone, where today's ipod touch model will be lowered in price, and the new model will cost what we see right now.

Either way though, that's a decent price for what seems to be a good competitor to the ipod touch. Is the app store worth 100 bucks? To some it is, to some it isn't. At least now you're not paying the same for less. (We'll see in a few weeks though lol)

Apple will most likely double the capacity, but I highly doubt in response to one product. I expect this price disparity last about a month. Apple generally doubles the capacity for the same or lower price every early fall for the past four or so years.

Quote:
Originally Posted by Virgil-TB2 View Post

I think it's kind of funny how the only two things that Zune has over iPod that could be considered iPod "missing features" (things that Apple's customers would actually like to see), are not being touted at all in the marketing of the Zune HD so far. By this I'm referring to the built in "social" and the OLED screen.

OLED is interesting, but I don't see how Microsoft's "social" is a selling point. You can get probably dozens of social media apps for the Touch, to services are already using if the buyer is at all interested in that kind of service. Most of those apps would connect to social media services that people actually use rather than being stuck in a small social room comprised only of people that own a certain product.
post #18 of 153
Quote:
Originally Posted by patrickwalker View Post

Could be price subsidization on the part of MS. Offset losses in one part of the organization by using the profits from another.

That worked great for XBox!
post #19 of 153
A $100.00 price cut for a crappy product doesn't take away from the fact that it's still a crappy product.

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post #20 of 153
Quote:
Originally Posted by revs View Post

I have to admit it, MS have done a great job on the Zune HD. I'm impressed! Now Apple - lets see you make something 2x better for us

ZUNE THE IPOD KILLER
i agree its all over for apple
the ZUNE and its LARGE accessory warehouses .
A brave new world of ZUNE SPEAK ..


i can now see the zune phones
zune computers
zune net books
zune kindles
zune garmens

gotta zune > see ya latrer
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post #21 of 153
Quote:
Originally Posted by JimDreamworx View Post

That worked great for XBox!

Thats right. Lost billions for many years right? Sony can't afford to do that, heck what company can? Doesn't make business sense.
post #22 of 153
I like the idea of outputting 720p via a dock, especially as the MS 720p codec is pretty good (if it's the same as the Xbox Live codec).

I don't think this is going to seriously dent the iPod's sales though.

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post #23 of 153
Quote:
Originally Posted by drk_one View Post

A $100.00 price cut for a crappy product doesn't take away from the fact that it's still a crappy product.

You can put lipstick on a pig...

.....
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post #24 of 153
My typical: "And this relates to Apple how?" Competition is all, but this has nothing to do with the inner workings of Apple (Apple's insides) but merely their competition. Its like I'm reading MS Insider.

Main Point:

To those who are already saying how horrible the Zune HD is (or will be), I urge to you first try the device before knocking it. True, it may not be as good as the iPod Touch (and I really hope it is much better than Apple's device so Apple can wake up some), but please don't put the device down until you have touched it, used it, crashed it, bought it, what have you. Only then can one make remarks on how well the device works. Don't make this an MS bashing game again. I'm sick of reading that stuff.

I want to know what the next iPod touch has in store for us? Unlocked bluetooth, oh please? Or built in Mic? Better build quality? Ideas folks?
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post #25 of 153
Quote:
Originally Posted by JeffDM View Post

Apple will most likely double the capacity, but I highly doubt in response to one product. I expect this price disparity last about a month. Apple generally doubles the capacity for the same or lower price every early fall for the past four or so years.



OLED is interesting, but I don't see how Microsoft's "social" is a selling point. You can get probably dozens of social media apps for the Touch, to services are already using if the buyer is at all interested in that kind of service. Most of those apps would connect to social media services that people actually use rather than being stuck in a small social room comprised only of people that own a certain product.

Jeff its all over
we lost

ITS A CRAZY ZUNE world now .
now only if i can find a zune accessory
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post #26 of 153
MS just WANTS to hurt Apple, and is willing to break even or LOSE money to do so.

Now is this fact or fiction?

- Does MS get Apple to lower it's price and look like bad guys for charging so much, for so long?

- Does MS in fact NOT price there's cheaply out of the gate (this would be a disaster if in fact Apple did lower there price)

- Does MS know, the ONLY way to compete with iPod's is with price, and in fact, how many folks will jump ship for $100.00?

- Does Apple come out with several new models, at great prices, making it very hard for MS to even get a foot hold in the market?

Hell, if apple was to lose $100.00 per unit, they could do so, for the next 5 years, and still not put a dent in their cash reservers, but boy, it would make it VERY hard for MS to continue down this road.

Here are a few options to wonder about:

- Apple does nothing, and still kicks ass!

- Apple in-fact lowers the price, adds several new models, and makes MS pay dearly for stepping on their turf

- Apple meets them half way, and watches to see how the Dud (I mean Dune) does, and makes them pay next quarter.

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post #27 of 153
Even if this product is surprisingly decent and a success from Microsoft's perspective, I think they miss the point. The truth is the market is moving towards convergence and sales of players like the zune are slowing down. If they really wanted to take on Apple they'd create a Zune phone. That probably wouldn't make their partners happy but the point is, they're trying to achieve success in a market that is increasingly mattering less.
post #28 of 153
Hey, hey, hey!

iPhone 3GS just went to 32 g. But if they rise Touch to 64 - why not up iPhone to 64? Already in the autumn together with the 8 g 3GS? Or in january 2010?
post #29 of 153
Quote:
Originally Posted by tumme-totte View Post

Hey, hey, hey!

iPhone 3GS just went to 32 g. But if they rise Touch to 64 - why not up iPhone to 64? Already in the autumn together with the 8 g 3GS? Or in january 2010?

Touch has more circuit board space to add double the flash chips. iPhone needs to support more radios (Bluetooth, WiFi, GSM/GRPS/EDGE/3G) vs. just WiFi and maybe Bluetooth.
post #30 of 153
None run so fast as those with dogs nipping at their heels.

This is a good thing - it keeps Apple honest and pushing the envelope.
post #31 of 153
Right now, Apple is giving away iPod Touch for free with a lot of Mac purchases. Clearly, the company is aggressively clearing out inventory.

What out, Zune!

(Of course, Microsoft could pull a Pre, and make the Zune compatible with iTunes. Loss of face aside, that would significantly ratchet up the competition!).
post #32 of 153
so apple meets the price of the 32gb, hopefully they are able to get an fm radio, oled screen, and a nice updated look to go with it. the zune hd is looking like a damn good media player. it looks like microsoft finally got something right.. this and windows 7 must have apple a little worried.

this ipod touch refresh is going to be important, and if apple slacks like they have been for a while now, the are going to see serious competition from microsoft this year.
post #33 of 153
And it doesn't mean crap because it's not a comparable product. There is no where the same support for games & apps. This is another case of Microsoft coming to the party 5 years too late.
post #34 of 153
Quote:
Originally Posted by anantksundaram View Post

Right now, Apple is giving away iPod Touch for free with a lot of Mac purchases. Clearly, the company is aggressively clearing out inventory.

What out, Zune!

(Of course, Microsoft could pull a Pre, and make the Zune compatible with iTunes. Loss of face aside, that would significantly ratchet up the competition!).

NO you may be wrong. Apple rarely clears anything out
i can still buy 4 yr old products.
This apples discount to the market without a permanent price reduction.

also you don't need any proof at all to get the free touch
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post #35 of 153
I'd say the Zune HD acceptable price tag would be.... about $290 cheaper?
And comparing it to an iPod Touch is just.... so ridiculous it's almost an insult
post #36 of 153
Quote:
The fact that Apple products mostly appeal to lonely friendless elitists who don't socialise much...

Is this really a fact, or just some bullshit you just dreamed up?
post #37 of 153
Quote:
Originally Posted by anantksundaram View Post

(Of course, Microsoft could pull a Pre, and make the Zune compatible with iTunes. Loss of face aside, that would significantly ratchet up the competition!).

Actually that would be very interesting, but it would blow apart their Live Marketplace strategy on Eggbox. Who knows...

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post #38 of 153
Quote:
Originally Posted by drk_one View Post

A $100.00 price cut for a crappy product doesn't take away from the fact that it's still a crappy product.

You can put lipstick on a pig...

BINGO.

The Zune will need to be sold for under $100 or free to sell in significant quantities.
post #39 of 153
Quote:
Originally Posted by Zoolook View Post

I like the idea of outputting 720p via a dock, especially as the MS 720p codec is pretty good (if it's the same as the Xbox Live codec).

I don't think this is going to seriously dent the iPod's sales though.

I would be nice if the next version of the touch could support loading Apple's HD video content and then outputting it via the dock connector to an HDMI cable. It would solve one of the big sticking points about downloaded video content, namely portability. If I buy a DVD/blu-ray, I can take it to a friend's house for movie night. But if I buy or rent from iTunes, I can only watch the HD version on my computer or HTPC; and I'm stuck with only the SD version on my iPod.

Of course, even if Apple did this they'd likely charge $99 for the dock-to-HDMI cable.
post #40 of 153
Why no mention of the OLED screen? Isn't that kind of an important oversight? Anyway, the Ipod Touch will remain the leader regardless simply due to the App store. What would sweeten the pot though, would be the addition of Oled and a camera. Still good to have Microsoft doing their thing and doing it somewhat well with the new Zune.
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