Apple after bell 6/16/06: huge fall as news of Microsoft iPod killer spreads


apple 3-month stock chart 06-16-06Well today the big deal for Apple was obviously the news that Microsoft is going to come out with an 'iPod killer.' It wouldn't be the first time Microsoft came in after a successful market and ended up the dominant player (can you say a leader in operating systems, number two in gaming consoles, and PDAs). They're savvy businessmen. But with Bill Gates no longer at the head, is Microsoft going to be the same company that saw openings to expand into those areas?

Apple has a huge lead and entrenched userbase with the iPod. When Microsoft took the PDA market, it was in part because Palm completely fell down several times for its users with failures to ship updated system software that kept up with media needs, and long stretches between hardware redesigns. For an iPod killer to work, Apple will probably have to fumble in order to lose its edge. It has happened, but so far the signs are that Apple is on sure fighting, scratched iPod nanos notwithstanding. It'll be interesting to see what the the Microsoft iPod killer is in the next weeks. Apple closed the day, however, at $57.56, down  $1.82, just over 3 percent. A sign that some are probably a bit worried.

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