Steve Jobs is utterly unfazed by the Zune. Or so he says in this Q&A with Newsweek. Some excerpts:

Microsoft has announced its new iPod competitor, Zune. It says that this device is all about building communities. Are you worried?

In a word, no. I've seen the demonstrations on the Internet about how you can find another person using a Zune and give them a song they can play three times. It takes forever. By the time you've gone through all that, the girl's got up and left! You're much better off to take one of your earbuds out and put it in her ear. Then you're connected with about two feet of headphone cable.

Do you think that it's fair to the customer that the songs they buy from Apple will only work on iTunes and the iPod?

Well, they knew that all along.

At one point you were saying, "When our customers demand it, that's when we'll consider interoperability."

Nobody's ever demanded it. People know up front that when they buy music from the iTunes music store it plays on iPods, and so we're not trying to hide anything there.