By Ina Fried, 5 January 2007 09:00
NEWS
Although Microsoft's Zune captured a decent slice of the hard-drive-based audio player market at large US retail stores, it failed to crack into the top 10 list of models in overall sales, according to market researcher Current Analysis.
The top 10 models included eight different iPods from Apple as well as two models from SanDisk, according to the company which tracks sales at Best Buy, Circuit City, CompUSA, RadioShack and Staples.
The Zune, meanwhile, captured 12 per cent of the hard-drive-based player market for December, although Current Analysis' study does not include many retail sales outlets, including Wal-Mart Stores and Apple's own retail stores. An earlier study by the same company in the midst of the holiday season found roughly similar results.
Current Analysis research director Samir Bhavnani said in an email interview: "Microsoft did well for a newcomer but it was competing in a segment that accounted for only one-fifth of all holiday sales."
Apple, meanwhile, continues to plug along, he said: "It has retained its top spot without having to turn on a subscription-based download service as a new product offering."
Bhavnani said that he doesn't expect Redmond to stand still, however. "Looking forward to 2007, I expect to see Microsoft offer a flash-based competitor to SanDisk and the iPod Nano/Shuffle in addition to a less bulky [hard-drive-based] player."
Microsoft has said it plans to expand the Zune effort, which it expects to be a multi-year haul.
The study surveyed sales from the day after Thanksgiving to the end of the calendar year.
Ina Fried writes for CNET News.com
Comments
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1. Jon T
The truth is that Zune didn't even reach the ankles of the iPod, let alone anywhere near its crown.
The figures need to take into account Walmart and the Apple stores before you go talking up Zune as a competitor...
2. anonymous
I just despise half witted reports on the internet.
If you don't have the information to make a meaningful comparison between two products- the Zune & iPOD then you're better off not writing anything.
In a week or two Apple will announce just how many iPODs were sold and MS, we hope, will announce how many Zunes it sold and then you'll have something meaningful to write about.
For example, here's something meaningful: As last last November Apple sold 70 million iPODs and 1.5 billion downloads on iTunes and as for Microsoft well their numbers were easy: Zero & Zero or almost those values. Now that means something!
Notice how there're no speculation or bias in my numbers. They are what they are. No decieiving percentage's like you often see when Apple and MS are compared.
3. Graham Coles
Zune is dead in the water.
From what I have heard, this design is a total disaster.
It seems it won’t play Microsoft's own 'Plays for sure' music purchased from Microsoft! --- How on Earth did they manage to screw that up?
It copy protects to death, even adding copy protection to your own produced content when you use the wifi to transfer files --- here hava a copy of my new song. Unfortunately you can only listen to it three times ...
As far as comparing it to an iPod, I believe it's not only bigger but has a shorter battery life.
Their music store doesn't even work with currency (apparently you have to buy Microsoft points and trade them for music :) so that you can never clear your balance properly without buying hundreds of songs, making the store less convenient and more expensive.
It won't run with Vista without a patch --- perhaps Microsoft didn't get their copy of the operating system until it was too late :-)
It's available in Brown, but not in any colour in the UK for another year or so :-)
Frankly, it doesn't sound much like a world beater. All they had to do is copy what apple did, but they managed to really screw this one up.
4. Ken Baldwin
Zune marketing was a freak show from the start.
It will go down in history as the biggest marketing trainwreck in the history of the world.
Not having one original idea on the campus, they copied the iPod as closely as they could - without getting sued for intellectual property infringement.
Not having one original idea on the campus, they copied the iTUnes store as closely as they could - without getting sued for intellectual property infringement.
Get it? The entire marketing plan was written by Microsoft attorneys.
Rejoice!
Rejoice!
You know a company is in its death throws when the lawyers are running the show.
It's over! Microsoft is doomed! The lawyers have their hands on the rudder.
Next stop - the shoals of destiny!
Ken
5. anonymous
We all knew the Zune wasn't going to do much for some time- it was obvious. Too many teens (mostly teens, anyhow) are blinded by Apple's iPod. I like the Zune way better than any iPod- even though this first Zune is only a primitive one. There will be more versions to fit with each person's needs- just like Apple has one to match different people's needs. I give it ten years minimum and Apple will be a hiss and a byword meant to scare our children into bed, since the iPod will be no more, and it's common knowledge that the iPod is the only thing keeping Apple in business. They got lucky. Not for long.