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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: Microsoft is doing the smart thing here
By Treckin on 5/28/2007 6:02:40 PM , Rating: 1
Sure. I got my dates wrong there; I was purely relying on memory of the actual events. In any case, it doesnt alter the state of my point.
X-box was not the underdog to the PS2.
Microsoft spent billions coming into an already fiercely competitive market, and hopped right on market share.
And the point being, that their lack of market share is not surprising, as this was not their strategy entering the digital portable music player market.


By Treckin on 5/28/2007 6:03:30 PM , Rating: 2
with the Zune... its not surprising with the zune...


RE: Microsoft is doing the smart thing here
By Pirks on 5/28/07, Rating: -1
RE: Microsoft is doing the smart thing here
By Treckin on 5/28/07, Rating: 0
RE: Microsoft is doing the smart thing here
By SigmaHyperion on 5/28/2007 10:00:17 PM , Rating: 2
That "initial" marketshare that peaked at about 19% took MS FIVE YEARS to earn.

Zune adoption is really not [i]that[/i] much different than Xbox adoption. It's just that the Zune has started so far behind the curve. When the competition had probably more than 100 million units already on the market before you got there, penetration takes a while on a percentage basis. Sony had a headstart with the PS2 too, but not NEARLY to the extent that Apple had with the iPod.


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