Apple created the GUI interface. MS copied it. Apple sued and won. MS still pays Apple a royalty. I believe.
Some of Apple's problems had to do with management "growing pains". Others have been attributed to MS business practices.
In terms of "who will win" - arguably Apple has already won because whatever happens now the Apple brand has been refreshed in the marketplace not only for music players but for notebook and desktop systems.
While in those latter markets, the "Switch" markets, they still are a small share of the market, each percentage point they grab may be small for MS but huge for Apple.
MS is even more vulnerable because the new Dual Core technology Apple has introduced is blazingly fast and intel based solving many software compatability design problems.
Things have not been helped by the death of "Longhorn" and the long wait for "Vista" which seems to be an attempt to mirror the OS X interface. There may be more to it than that but one of the expert videos out there on YouTube.com made that comment. Sorry, can't remember his name.
As for Zunes file management advantages, the RIAA is very likely to be very, very upset. The number of those using this feature for only home-made files is likly to be small so expect a big response, unless it is an artifact of their music store's licensing arangement.
In terms of the more global question: Zune vs Ipod a lot depends on:
-How Apple responds to Zune pricing and final features (don't count Apple out for some big surprises.
-When and to what degree Manufacturers can respond to demand for Zune units.
-How the public perceives the ergonomics and aesthetic qualities of the Zune - it seems rather big and bulky to me, rather like the boxyness of the Handspring Visor Prism vs the Palm Pilot, despite the cool graphics, the Zune does not have the soft edge sleekness of the iPod. Again, some may not care about this as one board member noted.
-The Zune's battery consumption rate. With all that going on, how long does it last?
-How hot does the Zune get - if at all.
-Is there significant danger of cracking a screen that large easily? How long is the screen covered? Is there an equivelant of the Apple care replacement plan?
-Will the Zune software interface with software packages for slideshows and movie making as the iPod does with the iLife suite? Will its store interface act as a whole media center as the free iTunes package does? Will the Zune store be able to buy from the apple store? Will the Zune suppliers give away free media each week as Apple does?
-Is there any risk of MS running into a patent lawsuit with Apple over its click-wheel as it did over the whole windows interface? Could this be a Blackberry like risk to the whole device?
-In fairness to the individual who pointed out that the Zune was not Mac compatible, Itunes and the iPod were not originally available in Windows formats either. Whether MS chooses to compete with Mac on its home ground is another point. With consumer investment in Mac Libraries in the (what hundreds of millions, billions?) huge $'s getting market share back will require letting people get some use out of their already purchased media.
In any case, the Zune will, must capture some of the market. But Apple's dominance in this market has come about for a reason - high quality product planning by smart people providing great customer service. Apple got there fastest with the mostest and the bestest.
Even if Zune becomes wildly popular, MS has already lost the major battle because the Zune is at the high end of the market and Apple's media sales are probably dominant in the Shuffle - Nano end, which are/will probably remain at a much lower price point than the Zune.
Will I mind having a 5th gen 30 gb iPod nano when the Zune comes out?
No way. I love how seamlessly it interfaces with my iLife suite, and I don't even have the current iLife yet. And that's a problem for Zune. With my apple care plan if my iPod dies I can just get it replaced for TWO YEARS. Wonder if they have that.
Peter, Technical Reviewer and Button Pusher
The Peter Files Blog of Comedy, Satire, Commentary, and Technology Review