http://www.bloomberg.com/apps/news?pid=20601087&sid=aYqZI5U2SnncMicrosoft Corp. is planning to have a portable music and video player out by Christmas in a challenge to Apple Computer Inc.'s iPod.
The digital player will have a wireless Internet connection, enabling users to download music without being linked to a computer, a feature the iPod doesn't offer, according to people briefed on Redmond, Washington-based Microsoft's plans.
Microsoft, the world's largest software maker, is seeking to take share from Apple's iPod, which commands 77 percent of the $4 billion U.S. market for digital music players, based on figures from market researcher NPD Group Inc. Apple's iTunes music store is used for 72 percent of music downloads. Microsoft has spent the past six years relying on partners to make players that use its software.
None of Microsoft's partners are doing the job that needs to be done, said Michael Gartenberg, an analyst with Jupiter Research in New York. Apple has set it up so Apple music flows only to Apple devices. It locks Microsoft out and gives Apple more of a hold.