It was supposed to be Zune which was late to the party after the iPod pretty much had the market sewn up. Now it's supposed to be the WinPhone, which is once again late to the party and hoping to unseat the iPhone by hook, or Android by (legal) crook.
I can't see this happening. At best I think MS can hope to become a player in the Smartphone market but I don't think they'll ever dominate. Still, I'd love to see the iPhone/iPod hegemony given a run for its money (don't think it's going to happen, though).
I own a WP7 phone and love it but reactions to it are mixed. Some people are really impressed when I show it to them but others give it only the most passing glance and continue talking about how awesome the iPhone is... '
Regarding the Zune and the iPod, AFAICT everyone other than Apple is pretty much fighting over scraps. In small markets like Canada, most of the players pulled out several years ago. Today it is dominated by Apple with Sony, Sandisk, Archos, and Coby vying for the 0.5% of the market that is left to them. It's REALLY crazy and I hate it. HATE it. What I can't stand is not having much choice when I go out shopping.
Anyway, back to the Zune, I'm hoping the MS is going to start aggressively marketing them in Canada again (the ZuneHD is only available here on-line and isn't officially available) because the Zune looks really good and I'm sick of hearing about the iPod Touch.