05/09/2008, 11:35am, EDT
Friday, May 9thZune reaches 2m sales; flat versus iPod
As part of its recent Zune update, Microsoft has revealed that it has sold two million of the music players since their launch in November 2006, revealing relatively flat growth for the device lineup. Although the company originally promised and slightly exceeded a target for its first million sales between the original launch date and June 2007, the company has largely remained silent on its data for its players in nearly a year.
The sales still give Microsoft a slight gain in overall US marketshare from three to four percent, according to figures published by the NPD Group.
However, the figures also indicate fragmentation in Microsoft's sales in the wake of the company's second-generation Zune players. The electronics maker had sold its first million using solely the pioneering 30GB model but since November has been selling two inexpensive flash-based models as well as two hard drive players, with the Zune's slow growth indicating little effect on the market for its broader product range.
Such slowdowns have been partly attributed to current and predicted drops in spending on MP3 players triggered both by a US economic downturn as well as saturation of the market, as few purchases are being made by first-time buyers regardless of the brand.
The results nonetheless leave Microsoft with just a fraction of Apple's US share and with comparatively slow development. The company has primarily affected marketshare of Creative, who has dropped from four to two percent marketshare year-over-year, but has been unable to dislodge second-place SanDisk (at 11 percent) or the top-selling iPod. Apple in its latest quarter sold 10.6 million iPods, or more than five times Microsoft's cumulative sales to date.
Critics have sometimes attributed the lack of success for the Zune in its relatively slow development. The Zune has typically obtained features later than the iPod and some other opponents, including podcast support received in late 2006 as well as smart playlist support obtained earlier this week.
Filed under: iPod, industry
Other story tags: Microsoft, Zune, SanDisk, Creative
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posted by dom2cool
And no, I have yet to see one in someone's hand, though I saw one on display somewhere. I think...maybe...can't remember...what were we talking about?
posted by mgpalma
posted by MacnTX
posted by chefpastry
posted by climacs
posted by testudo
posted by slapppy
posted by rytc
posted by simdude
A couple of months ago I bought the 80GB and 4GB players. NICE hardware. Solid construction. The wifi syncing is very useful for day-to-day updates of news, etc. Apple should do this. BUT, again, NO SUPPORT for East Asian languages on the player. I returned them.
After a two hour phone-phest with MS, they told me they have no intention of adding that support until the Zune goes live worldwide (2080???).
After this phone call, I finally bought two refurbished iPod Video 5.5 80GB models on the Apple Store.
I don't do online music purchases...it is CD all the way for me, so the player doesn't matter that much in regards to online sales...
BUT...the ease of use with the iPod and iTunes simply cannot be beat.
By the way, the Zune bashing is petty, especially if you haven't even used one...leave that to us who have bought and returned them.
posted by lamewing