The iPod has up to 80% share of the Australian market and critical to this share is the ability of Apple iPod owners to download content from the iTunes web site.
The problem for many Australians is the physical lack of content with many content providers not interested in servicing Australia. Australians visiting US content web sites will find themselves locked out because they don't own a US credit card.
Last week Microsoft unveiled a package of portable music players and an online music download service named Zune. Their primary objective is to take portable music and video market share away from Apple. Many analysts don't believe that they will be able to do this and instead they will take share away from previous partners like Creative Technology, SanDisk and Samsung.
Microsoft took the wrapper off the Zune player, which some have nicknamed ``the iPod killer,'' last week. It is scheduled to hit stores US around the Christmas season.
According to David Mclean head of gaming and entertainment at Microsoft there are no plans to launch the Zune player pre Xmas.
Microsoft boasts that Zune has what iPod doesn't have _ music-sharing capability. Using its Wi-Fi wireless function, Zune users will be able to detect one another and then share songs, recordings and pictures wirelessly. Songs copied from another's Zune will be available for playback up to three times only, and afterwards users will be guided to purchase them via the Zune online marketplace.
For Microsoft, the target is clearly Apple. It is investing ``hundreds of millions of dollars'' over the next few years to overthrow the years-long dominancy of the iPod player and iTunes music store, according to Robbie Bach, president of the company's entertainment and devices division.
Samsung also has tried to expand its share in the portable music player market, while avoiding a head-to-head clash with Apple's iPod.
Earlier this month in Germany, Samsung unveiled two new music players _ YP-K5 and YP-T9 _ with the opening of a music subscription service in Europe. But the company's spokesperson said on Friday that it will not operate the online store in the United States, or Australia.
According to GFK in Australia Apple has up to 89% of the large player market and 82% of the Nano size market. According to market researcher NPD Group, Apple held 75.6 percent of the digital music player market in the United States in the second quarter of the year. Samsung was only the fourth-largest seller, with a mere 2.5 percent share after SanDisk and Creative.
The YP-K5 player which Samsung says will be launched in Australia has a touch-sensitive control pad and a slide-out speaker, which makes it look like a cute mini boom box.
