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Friday, June 16, 2006

Will Microsoft Build An iPod Killer

Word surfaced in the NY Post that Microsoft (MSFT) has been in discussions with the music industry to create a competitor to Apple (AAPL) iPod and ITunes.

It hardly matters. A look at the breakout of Microsoft's 10-Q indicates that the company makes it money from its old-line OS businesses. Attempts at starting up new businesses like search and web portals have fallen relatively flat. Microsofts share of the search business is a distant third to Google and Yahoo!.

Apple's lead counts. Industry reports indicate that the company may have sold as many as 8.2 million in May. Sony can take a run at this business. LG can. And, so can Microsoft. But, it is one business where although some small share may move to new competition, the lion's share will stay with Apple.

Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com He does not own securities in companies he writes about.
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