DOW JONES NEWSWIRES
Microsoft Corp.'s (MSFT) began accepting preorders for its
next-generation Zune HD media player on its Web site, at a
significantly lower price than rival Apple Inc.'s (AAPL) iPod.
The first Zune appeared in late 2006 but has struggled to chip
away at the iPod's dominance. While Apple has morphed the iPod
since its 2001 debut into a range of models including the
Internet-enabled iPod Touch, Microsoft has so far limited the Zune
to a few different devices, distinguished only by size and storage
capacity.
Expected to hit stores Sept. 15, the new model will change that,
with an iPhone-like touch screen, Internet browser and
high-definition video. The device also offers H-D radio, which is
not available on the iPod touch.
The 16-gigabyte model is making its debut at $219.99, compared
with $299 for the 16-gigabyte iPod touch. The Zune's 32-gigabyte
model is set at $289.99, while the comparable iPod touch is priced
at $399.
And while the earliest iterations of the Zune were mocked in
some quarters for their relatively bulky design, the newest Zune
will boast a sleeker, edgier aspect, according to images posted on
a company Web site.
In-person preorders will be accepted starting Sunday at Best Buy
Co. (BBY) stores, with previews available in some cities on Aug. 22
and 23.
Microsoft shares were flat at $23.53 in recent trading.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com
