backtop


Print 31 comment(s) - last by crystal clear.. on Dec 2 at 1:56 AM


Pretty in Pink?
Microsoft's Zune gets off to a promising start

Microsoft's Zune portable audio player may not exactly be setting the sales charts ablaze, but it did make a respectable showing during its first few weeks on the market. According to market research firm NPD Group, the Zune managed to capture second place in the digital audio player market in its first four days of availability.

For its first week, the Zune managed to grab 9% of the market according to NPD. "Considering it is a new brand, it's a very good first-week showing," said Ross Rubin of NPD Group. Rubin went on to say "For a new brand that received limited to mixed reviews, and which is incompatible with the leading music store (Apple's iTunes,) as well as other music stores, it was a good launch."

It's a strong showing indeed by Microsoft, but only time will tell if the Zune has the stamina to make in further inroads on Apple's dominate iPod range. Apple's line of portable audio players which consist of the iPod, iPod Nano and iPod Shuffle captured a whopping 63% for the same week period according to NPD.

As far as sales are concerned, Apple's cheaper flash-based Nano and Shuffle take the bulk of iPod sales. The Nano and Shuffle have base MSRPs of $149 and $79 respectively compared to $249 for the hard drive-based Zune.

Microsoft is going to need to expand its Zune lineup to include cheaper flash-based player if it is going to have any chance of competing toe-to-toe with the iPod. Creative and SanDisk both have flash-based offerings that are well below the $100 threshold and Microsoft will eventually have to follow suit.

On a side note, when Microsoft launched its Zune on November 14, it also dumped 100 pink Zunes onto the market which surprised some unsuspecting buyers when they opened their packages. Not surprisingly some hit eBay with one selling for over $700.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Zune 360
By apollo7 on 12/1/2006 12:58:14 AM , Rating: 3
Although his post was partially biased, I believe he brought about a very good point. Microsoft threw their very first audio player on the market, and were able to take the 2 spot in 4 days? Thats not bad. I bet MS is letting out a breath of relief right now. They've knocked out all but the nemesis (ipod) already.

Now they can start looking ahead to their next player. I'm assuming a flash-based player will be making its way, which could very well grab a few more points from apple. At this point, any share of the market that Microsoft takes from apple is a victory for MS. Whether its 5% to 40%. If they can chip away at apple with a few more revisions, they might be a true contender to the formidable ipod.

Or they could fail...I'm eager to see how this all pans out, especially after the holiday season.


RE: Zune 360
By Oregonian2 on 12/1/2006 3:03:55 PM , Rating: 1
Have to wait a few weeks more. They may be like movies where the first week is the biggie and it goes down from there when word-of-mouth gets out about it. :-)

From photos, I've thought the Zune was incredibly ugly. Went to Costco, and although they've a zillion of them for sale in the form of plastic photo-things that you take up to be exchanged for a real unit, they had NONE on display in person (even with the glued security cords attached), while they've iPods on display (which is what sold me on them). My conclusion is that the photos must be right and they are incredibly ugly.


"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates

Related Articles
Apple Announces New iPods
September 12, 2006, 1:25 PM













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki