Updating Estimates as Microsoft Decides to Scrap New Zune Models
Microsoft’s (NASDAQ:MSFT) Zune competes with Apple’s (NASDAQ:AAPL) iPod suite of products and SanDisk’s (NASDAQ:SNDK) Sansa in the music and video player market. Microsoft CEO, Steve Ballmer, touted the new device a future rival to the iPod when the device was launched in 2006. A few years later, Microsoft will stop introducing new versions of the Zune music and video player because of the tepid demand according to Bloomberg.
We have made the update to the Microsoft model after this news, which leaves the price estimate nearly unchanged for Microsoft stock at $31.64. The XBox and Zune combine to account for only 1% of our estimate for Microsoft stock. However, our price estimate is about 25% above market price. We estimate that Windows Operating System and Microsoft Office combine for around 75% of theComplete Story »