updated 11:40 am EST, Mon December 18, 2006
Zune at 9 Percent Share
Microsoft's oft-maligned Zune player may not have fared as poorly as expected in its first month of sales, according to an NPD study reported by Mercury News. Despite observations of the Zune's quick descent in store rankings and in overall popularity after its initial launch, the new digital player commanded 9% of the hard drive player market, claiming second place next to Apple's ubiquitous iPod. Microsoft's share of the overall market was a considerably smaller 1.9%, placing it in fourth behind Apple, Creative, and SanDisk.
Although the Redmond-based company's share is small and may face an uncertain future, Mercury's Troy Wolverton says, the iPod has lost a slight portion of the market in the face of more aggressive competition. Apple's share of the hard drive player market has fallen from from 86.8% at the end of 2005 to 82.7% in mid-December, while its overall command dipped slightly from 63% to 62.2%. The change may signal at least partial success for the Zune, whose impact was widely expected to steal marketshare from existing Windows Media-based rivals rather than Apple.