According to TechCrunch, the odds that Microsoft (MSFT) is working on a phone version of its Zune multimedia player are high. The phone may be set up to run on a 4G network, perhaps the one that Sprint (S) is building.
Wall St. has mostly thumbed its nose at the Microsoft Zune. And, why not? It came to market five years after the iPod which has built a lead of about 70 million units sold. But, the cell phone on steroids handset market is a different story. The iPhone will not be out to June, and Microsoft may not be far behind. It is also likely that Nokia (NOK), Motorola (MOT) and Sony-Ericsson (SNE)(ERIC) have had a look at the Apple (AAPL) product while planning roadmaps for their own next generation phones.
And, therein lies Apple’s problem. It may well have very little lead on the competition with its new phone. Investors have driven the stock to a one month low of $83.25, after strong earnings briefly moved the stock to almost $98. Now, Apple is faced with tepid guidance, a wait of several months for the iPhone, and potential options backdating problems for Steve Jobs at both AAPL and Pixar.
The iPhone is a good idea, but, for the time being, that is all it is on Wall St.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Top Gaining Stocks
Top Losing Stocks