The timing is precise. On the day that Apple announces its new iPod line, Microsoft jumps into the headlines with a price reduction for its Zune:

“With Apple widely expected to introduce new iPods later Wednesday, Microsoft has cut the price of the Zune player by $50, dropping it to $199.”

link: As new iPods loom, Zune gets price cut

Fifty dollars is a significant saving. However, it does make one wonder just how much money Microsoft is making. If it is possible to knock off fifty dollars and still have a positive profit position, after all the marketing tiers have been paid, the income generated by each Zune sale must be enormous. Perhaps, Mr Jobs could lower the Zune pricing even more with a few more announcements…

Catherine Forsythe

[tags]discount, microsoft, zune, apple, ipod, steve jobs, timing[/tags]