Microsoft: Zune success good, still not satisfied
Posted on 04/08/08 14:52 by Michael Barkoviak                             
Microsoft: Zune success good, still not satisfied

At a time when the Apple iPod controls more than 70 percent of the MP3 player market and continues to rack up strong sales numbers, it seems like every other company is simply fighting for second place. One such company is Microsoft, which bravely entered an already crowded market knowing its main foe has a strong following of dedicated loyalists.

"Zune is about having a choice. With Zune you can customize the back of the player with laser etching, you can pick your own background image on the player, you can listen to the radio without an add on and for the price of one CD a month you can have access to millions of tracks," a Microsoft spokesman told CDFreaks. "You can also share the music you listen to on your PC and your Zune player with friends in the Zune Social online music community, MySpace and FaceBook."

Twenty months into the Zune effort, Microsoft is pleased with the MP3 player's success, and has had to squash unconfirmed rumours it planned to pull the Zune from store shelves.

NPD data indicates the Zune has the number two position in the market among HDD MP3 players and is selling decently in the flash sector also. The Zune is said to be meeting all internal sales projections and has exceeded expectations since it was first launched.

The main differences between the Zune and the iPod are the following features: a wireless sync feature, social ability to listen and share music to other Zune listeners close by, software some users find easier to use than Apple iTunes, and a built-in FM radio.

"Zune is not fading away and again, we are pleased with our progress against an entrenched competitor (Apple)," Microsoft said. "Zune is a long term investment for Microsoft. Today there is much focus on the stand alone portable media player. But if you look across the Entertainment and Devices Division at Microsoft you can see how, in the not too distant future, a customer’s entertainment experience could flow across the PC, Xbox, mobile phones and automotive."

While nothing specific has been announced by Microsoft, the company said it is not done in the MP3 player market, and consumers should keep their eyes on Zune.

 

Reactions
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By kdt (guest), Monday 04 August 2008 19:17

How is Microsoft doing decently?  They only sold 2.1 million Zunes from it's introduction in November 2006 to March 2008 according to their own numbers.  They actually sold less per month after the Zune 2 was introduced than before.  They have about 4% of the US market -- well behind Sandisk at 11%.

By Crabbyappleton, Monday 04 August 2008 19:25
Crabbyappleton

"Zune is about having a choice."

...and I think the consumer has spoken. bigsmile BTW-since when has Microsoft been concerned about giving anyone a choice? This sounds like marketspeak to me.

By Crabbyappleton, Monday 04 August 2008 19:31
Crabbyappleton

Here is a good example of lack of choice right from this story: "social ability to listen and share music to other Zune listeners"

 

So the wireless "feature" only works with folks that have a Zune as well. Some choice. Good luck running into someone within range of your Zune that wants to "squirt" you a tune. Nice bit of hobbling there Microsoft! This is why thier stuff  doesn't sell. You pay for a tech feature, like wireless, but they hobble it to try and lock you in to their product line. So people choose to buy something else.

By Dr. Who, Monday 04 August 2008 19:44
Dr. Who

I own a Zune first Gen was going to go 2nd gen but either way you lose on sharing tunes as it is only playable for 24 to 72 hours then the transfer is usless. Thank god for hacks.

By Jimmy Jim Jims (guest), Monday 04 August 2008 23:53

Dr. Who: The new Zune software removed the 3 day limit. You are still limited to 3 plays, but they can be whenever you want. It seems unrealistic that they'd let you just share the songs with no limits at all and the 3 plays seems reasonable. It is easy enough to buy after that.

 

Crabbyappleton: Is there an alternative that lets you share music? They are trying something different then the earwax swapping iPod solution of sharing headphones. The wireless works for syncing too, which many find convenient. Microsoft lets me choose which computer I want, which phone I want, and which phone company I want. Some other companies don't. The fact that their players don't offer social exchange of songs doesn't make them more open.

By Crabbyappleton, Tuesday 05 August 2008 01:53
Crabbyappleton

@Jimmy Jim Jims - You make a good point! I wonder why they don't sell that well then? Apple seems to be able to restrict hell out of everything they sell and people stand in line all night to get one of their newest items...maybe the Zune needs white earbuds or something.

By ivid, Tuesday 05 August 2008 05:56

I'll give them one thing, I would not need the absolute turd that is iTunes polluting my PC to use a Zune.

The radio and wireless sync are great features. Apple should get up to speed on that, its something they have been criticized about for a while. Requiring an add-on for radio is lame.

By idiot (guest), Tuesday 05 August 2008 18:56

crabs whats all the fuss about you been sitting next to the kodak factory again geez

By Crabbyappleton, Thursday 07 August 2008 02:44
Crabbyappleton

"By idiot (guest), Tuesday 05 August 2008 18:56

crabs whats all the fuss about you been sitting next to the kodak factory again geez?"

 

No, but when you go by there later tonight,.say hello to your momma for me!

*rim shot*

By Brandy (guest), Thursday 07 August 2008 13:48

Somehow, Zune has slipped in under the radar. According to reports from a few months ago (From NPD, I believe), Zune's managed to slip into 3rd place in overall mp3 player sales - surpassing Creative. And they managed to do so without the player even being availble outside of the U.S.

 

Truth is, Zune can play up their features all day long and not make too much of a dent against iPod. I believe Zune knows that and so does Apple. For example, I hear iPod users (such as myself) always complaining that they can't remove music from their devices and put it back on their computers. Zunes allow you to do so... among other things not allowed by iPods. However, in order to grab even the tiniest bit of iPod market share, the Zune team seems to be trying to focus on saavy marketing and building good word-of-mouth. After all, considering how few features most iPods have, marketing is primarily what's selling them.

 

I wouldn't be surprised to see Zune slip into a distant, but respectable 2nd place once they go international. (Although, getting the rights to share songs between devices internationally is tough, which is one reason why Zunes aren't available as widely.)

 

Also, what's up with Mac support, Zune?! bigsmile

By FS (guest), Friday 08 August 2008 19:08

Ohhh Zune, so much opportunity missed.  When Zune first came out it was exciting.  A competitor to the iPod and a Microsoft backed music player.  With the Xbox 360 there seemed to be so much cool stuff that could happen.  Saving game videos, using the zune as a memory card, transferring movies to and fro from Zune to 360, wireless syncing between xbox 360 and zune, GAMES, possibly phone, internet phone even.  But the difference...ongoing innovation by Apple.  When the iPhone came out I tried to resist and stayed with my first gen Zune but after playing with the iPhone for months there was no question I was ready to get aboard the innovative band wagon.  iPhone was the huge step that I was hoping the Zune would be.  Now iPhone has the app store and what has the Zune done?  Laser etchings into the back of the player?  Seriously?!?  My faith in Microsoft is quickly dwindling.  They better have something up their sleeves because Apple is just skyrocketing and Microsoft is falling further and further behind.  Perhaps that is the wrong terminology...not falling behind but losing touch more and more with customers.  Is it just me or is anyone starting to question what are they even doing over there in Redmond, anything?  I am looking forward to the Mac/Wii inspired Xbox Live update this fall but if that is a disappointment this is one customer that will be questioning every product that comes out from Microsoft and will wait to check the alternatives.

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