Uh...no. Apple's iPod wasn't the first MP3 player or anything, there were 100s of other brands. Apple became successful because other MP3 player's weren't as easy to use, setup, and didn't last as long.
Apple does software/hardware integration and has been for decades, hence they're great computers, iPods, and iPhones.
Let's face it, Microsoft is trying to catch up with Apple. iPods to Zunes, Apple Stores to Microsoft Stores.
People aren't having good user experience with Microsoft that's why Apple is thriving in today's business.
I never said Apple was the first, did I?
Well of course MS is trying to catch up with Apple. So is every other company. But if you've used the Zune, you would be able to say that it does stand as the biggest competitor when the iPod gets phased out. Like I said, I wouldn't be surprised if it's soon, what with Apple's big concentration being on the iPhone OS and it's devices.