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"There's nothing that the iPod does that I say: "Oh, wow, I don't think we can do that,'" Gates says....Yet for all the effort, Microsoft isn't going to displace Apple anytime soon. The stylish, simple elegance of Apple's iPod, together with its pioneering iTunes download service, has come to define digital music. Apple has sold nearly 4 million iPods and more than 100 million songs, and its momentum shows no signs of abating. By comparison, Microsoft hasn't shown the flair that's necessary in digital entertainment. It's relying on partners to gin up iPod killers, and to date, they haven't come close to Apple's allure. And even as Microsoft's partners are improving their designs, so is Apple, making its lead that much more difficult to overcome. "The iPod has transcended being a consumer device and become a cultural icon," says Jupiter Research analyst Michael Gartenberg."
A very interesting article about how Microsoft hope to unseat Apple and the iPod. The article also touches on how Microsoft see video as the future and how they hope to leverage that to surplant Apple. If Samsung or others can figure out how to make Portable Media Centers that the average consumer wants, they will be sitting in the drivers seat for the next 5 years.