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Microsoft ships its one millionth Zune ahead of schedule

Microsoft shipped its one millionth Zune MP3 player after nine months on the market according to Robbie Bach, president of Microsoft's Entertainment and Devices Division. The company had originally expected to top the one million mark in June, but the company achieved the feat a month early.

"We're very pleased with the progress. We've sold a little over a million Zunes. In the category we're in, the hard-disk-based category, we've got about 10 percent market share," said Bach. "It's a good start. It's not an overwhelming start. I'm not going to pretend it's some gigantic move."

Even though Microsoft shipped over a million Zunes, it's still well behind segment leader Apple which recently celebrated its 100 millionth iPod sold after nearly six years on the market. As of February 2007, the iPod commanded 73.7 percent of the MP3 player market. Microsoft's 2.4 percent share was good enough for fourth place behind SanDisk and Creative Labs.

Microsoft is expecting a rather large uptick in sales leading up to the 2007 holiday season. The company is building a new manufacturing plant in China which will produce a second-generation HDD-based Zune along with a flash-based Zune.

In the mean time, Microsoft is likely to add firmware updates to existing Zunes to further enhance their capabilities. New MP3 player entries on the market such as SanDisk's Sansa Connect offer wireless downloading functionality that many assumed the Zune would feature from the start.

"As to the Wi-Fi, we think the idea of these devices being connected where you want them connected is very important. That's why we shipped the original Zune with Wi-Fi built in, remarked Bach. "The cool thing about that is, the innovation can all be in software. Wi-Fi is an important area. We'll see how that SanDisk project does."



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RE: Buying a fourth
By Pirks on 5/28/2007 4:46:10 PM , Rating: 0
So how would you compare your Zune experience with iPod one? Is Zune marketplace really better than iTunes store? Give us some detail please, on why you chose Zune, how your kids are being treated at school, is everyone laughing at them for not being hip and stuff? Please provide more information. Thank you :-)


RE: Buying a fourth
By bdojack on 5/28/2007 5:39:37 PM , Rating: 2
We never owned Ipods. The salesperson at Best Buy told me Ipod was just an "image" thing. He said Ipods were not that good compared to some MP3 players. So I purchased an MP3 player (Samsung), for myself, based on Consumer Reports. My kids had a bad experience with Sansa MP3's so we paid the extra and have been quite satisfied with Zune. The kids at school thought my kids' Zunes were cool, and they wished they had one. They said their Ipods did not do nearly as much (whatever that means). I don't know how Zune Marketplace compares to the iTunes store. I picked Zune because of the large storage capacity and Microsoft brand.


RE: Buying a fourth
By Pirks on 5/28/2007 6:30:45 PM , Rating: 1
Hey, thanks for an informative answer. I feel that your reaction to Zune might be quite different had you experienced iPod and iTunes store before. Never listen to sales people, they often talk total bs just to sell you something. He deceited you on iPod being purely image thing - it's actually very far from truth. Oh well, guess you may try it out later, and compare it to Zune - you may as well change your opinion then. Anyway good luck with your MS stuff... I like Creative Zens more 'cause they have replaceable batteries and do not require special software to get music transferred, it's "plug and drag player", I like this easiness very much. I heard Zune is not like that, you have to sync it or something... anyway, enough offtopic ranting for today :-)


RE: Buying a fourth
By kmmatney on 5/28/2007 9:18:54 PM , Rating: 2
The Ipod isn't an "image" thing - it actually offers very good value for money - at least that's what I felt when I bought my 8 GB nano, which has been bulletproof. The other brands weren't any cheaper, nor were they built as sturdy. I've never used the Apple store, though...


RE: Buying a fourth
By Tides on 5/30/2007 3:53:06 AM , Rating: 2
I like the Zune Marketplace as well. The thing that sold me on the Zune was the all you can eat monthly subscription pass. It was a toss up between Sansa players (at the time they didn't have that new wifi/internet radio player) with the Rhapsody subscription; or the Zune which had a video screen and some other cool features. That was probably the hardest choice I made, because I really am a fan of Rhapsody's service. Zune's software is clunky and I seem to find a few more cd's I want on Rhapsody's service... but I'm happy with the Zune purchase.


"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch














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