That is perfectly right. If Steve Job's did not think that Microsoft's Zune posed a problem to the iPod he would not have said that it is a "clunky iPod lookalike with no sex appeal". And to tell you the truth that is one of the reasons he announced the iPod phone right after Microsoft's CES spotlight because he knows he has competition. The iPhone is great but it lacks one thing and that is productivity, which in fact all Mac software lacks. They have all these fancy things but when it comes down to being productive they fail miserably that is why businesses except for Hollywood do not use Mac's and allot of schools are turning over to Microsoft because they have what the schools need.