Zune grabs number two spot behind iPod

Microsoft’s new Zune portable media player might be doing better than expected. According to NPD Group numbers quoted by SF Gate, the newly-released player is already in second place—albeit a distant second place—behind Apple’s iPod line in terms of sales. The numbers say Apple has a 72.5% revenue share in the portable media player market, while the Zune dislodged the SanDisk Sansa at the number two spot with a 13% share. 13% isn’t particularly impressive, but it’s certainly not bad for a device that’s only been out for two weeks. Thanks to Gizmodo for the tip.

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    • zgirl
    • 13 years ago

    Little known fact, M$ got that application support because they were giving away their SDK kits for free. While IBM was charging for their OS/2 ones.

    Gee who would you write software for?

    • Taddeusz
    • 13 years ago

    What I’d really like to see are full statistics on percentage of sales versus returns and if the statistics this article gives represent pure sales or sales minus returns.

    I’ve been reading through the Zune reviews on Amazon and quite a number of people who bought one returned it in exchange for a different player. Most of the time for an iPod.

    Lots of people seem to be having problems getting the device to even be recognized on their computer. One reviewer even took it back to Best Buy where they bought it and the Geek Squad could only get it to work on two computers.

    Microsoft really has lots of work ahead of them if they really expect to take the market away from Apple.

    And, Mr. Dawkins, as annoying as you are I do respect your opinion even if it is a little misguided at times.

    Only time will tell how this one turns out.

    • Taddeusz
    • 13 years ago

    At least I’m not a shill

      • Ricardo Dawkins
      • 13 years ago

      I mean #27…forget to post but…
      History lessons from you, right? Remember one thing.

      History ALWAYS repeat by itselft…

        • Taddeusz
        • 13 years ago

        Yes, history is repeating itself.. by Microsoft’s own hand.

        Microsoft is destroying a previous market it created called Play For Sure. Basically throwing all it’s Play For Sure partners to the curb to be replaced by it’s own Zune and Zune music service. Not only that but Play For Sure music won’t play on the Zune alienating anyone who purchased PFS music from being able to play it on the Zune.

        Microsoft is making enemies faster than they can sell players.

        Microsoft has repeated this same tactic many times. And not always successfully.

        Somehow Microsoft is the cat’s meow in the minds of those who hate and fear Apple even though Microsoft is by far more evil and scheming in their attempts to control everything electronic. If I had a real choice all my computers would probably not be PC’s. As it stands all of them are PC’s running XP. That may change in the future.

          • Ricardo Dawkins
          • 13 years ago

          Since when are you caring about the PFS partners?…did you buy an iriver clix instead of a nano…a Zen Vison M instead of a 5th G….or a mobiblu cube instead of the dap w/o screen aka shuffle. ?

          And what market is MS destroying when apple get 70

            • Taddeusz
            • 13 years ago

            You really are hilarious.

            Microsoft has pulled this same strategy before. Remember OS/2? It was originally a partnership between IBM and Microsoft to bring about a more advance OS for the PC. While Microsoft was still supporting development and marketing of OS/2 they were also planning Windows NT which was built upon the same technology. Windows NT could run OS/2 applications. Once Microsoft had a clear foundation with NT they dropped all support for OS/2 and left IBM in the lurch.

            Microsoft is doing the same exact thing with the Zune. Creating a player that drops Play For Sure while not dropping company support for it. They’re creating a parallel technology that alienates their PFS partners. While they may still be supporting PFS now that may not hold true in the future. Play For Sure’s days are numbered.

            History is repeating itself.

            • Ricardo Dawkins
            • 13 years ago

            yeah, I’m hilarious. Thanks.

            History lesson from Ricardo to Tadeus…

            Windows 3.1/DOS have more marketshare than OS/2 could ever dream. thanks to applications supports from games, development tools, shareware, utilities, etc. And you know what sells OS is called “Application support”. Almost the same thing happening to the heralded OSX. Not commercial applications support NO OS SALES.

            OS/2 demise was Big Blue own fault. I remember they were as big or bigger than MS. They installed Windows 95 on Activas and Thinkpads instead of OS/2. whos fault is it ? MS or IBM???

            Back then OS/2 WARP (1995) was up against: Windows 3.11, W95, WinNT 3.51 and DOS. Only NT 3.51 have almost the same features as OS/2 WARP but Warp lost to Windows 95 on the consumer market.

            Bring any FACT after this…if you dare……
            §[< http://en.wikipedia.org/wiki/OS/2<]§

            • Taddeusz
            • 13 years ago

            You totally missed the point of my post! I was using that as an example to show you that Microsoft is using the same tactics they’ve used time and time again. Certainly that time Microsoft succeeded but in no small part due to IBM’s negligence to OS/2. IBM didn’t market OS/2 very heavily which played a huge role in it’s failure. But that’s beside the point.

            Microsoft is doing everything it has already done with other products. It has not always worked out so well for them. They’re failures are always glossed over by their successes.

            A year from now we can come back to this and see how things are going but considering Microsoft is alienating their larger segment of PFS partners this can only turn out badly for them in the long run.

    • Ricardo Dawkins
    • 13 years ago

    HERE COME THE IPODERS….sigh!

    • Kopi
    • 13 years ago

    One more thing – for those of you who still remember, do you know the apple computer was more popular and established when the pc and windows came out? Go have a look at their market shares now and see what time can do.

      • Taddeusz
      • 13 years ago

      Only because Apple sat on it’s butt while Microsoft practically came out of nowhere with Windows 3.0. Up until version 3.0 Windows wasn’t taken seriously. Microsoft had a pretty large uphill battle to get a GUI on the PC because most PC hardware already in the market couldn’t support it.

      Windows 3.0 wasn’t even that good running on modern computers at the time compared to the existing Macintosh computers. But Microsoft won in the long run because there were more PC’s out there than Macs and Apple idly sat by thinking what they had was good enough.

        • zgirl
        • 13 years ago

        Your also forgetting Sculley’s premium pricing on that. He felt he had the best product so was going to charge the most money for it.

        M$ wanted to have everyone owning an easy to use, afforadable PC.

        Seems pretty obvious which marketing strategy worked.

        I know I hated what I spent on a IIsi in ’91. Compared to what I could have gotten PC wise for less money.

        Funny how I don’t own a Mac today.

        • d0g_p00p
        • 13 years ago

        Hahah, sounds like the current situation, Vista vs OSX. Nothing has changed.

          • Taddeusz
          • 13 years ago

          Except the roles have reversed. Apple is now the innovator and Microsoft is the unmovable monster. Even though the site is very biased towards Apple Roughly Drafted has been having a pretty good writeup on the situations between the two companies. Microsoft is basically acting like Apple did during the 90’s. It will be interesting to see how this all pans out over the next decade.

            • Ricardo Dawkins
            • 13 years ago

            so, MS was an innovator back then now ?…jajajajajaj…hilarious….Come on!

            From day 1, all the iFanboys are saying MS ripped off the MAC GUI…LOL

            History lesson 2 back to Tadeous.

            What next decade ? 2010-2020
            Are you sure the business model will change with cApple (LOL) still down after too many years with that wimpy marketshare against the PC/Microsoft juggernaut ?

            *they changed to X86. So what ???

            So the PFS partners could not destroy the iPod marketshare juggernaut but Apple can down MS ?
            are you serious ? I will pay good money to see that.

    • Kopi
    • 13 years ago

    How did the ipod do when it was forst released? It took the ipod more than a year after launch to gain the momentum it has. M$ is in this for the long haul and with the kind of $$$$ at thgeir disposal, i wouln’t write them off yet.

    • R2P2
    • 13 years ago

    I’d say probably at least 75% of the people who wanted a Zune now have one, and it’s all down hill from here. Everybody who’s willing to consider other players will probably buy one of the other players.

    • IntelMole
    • 13 years ago

    That last sentence is kinda contradictory. Y’know, the before the last one about Gizmondo 😛

    Earning yourself a 13% stake in the music player biz against a well established rival with huge barriers to switching (how much music would you have to buy again?) ….

    in TWO weeks?

    I’d say that’s pretty good myself.

      • blastdoor
      • 13 years ago

      I’d say it means very little — let’s check back in January to see what the respective shares were for the entire quarter. I’ll bet what we have here is a surge of early adopters inflating the numbers.

    • eloj
    • 13 years ago

    Someone commented on slashdot that the Happy Numbers (assuming the source is the same) are for the first FOUR days and include no online-retailers. Can you say “flame out”?

    Let’s measure again in 6 months.

      • ew
      • 13 years ago

      I was curious about the numbers too. There is no way Zune could have taken 13% of the entire market in so little time. So the way to interpret them is that if sales remain the same for the rest of time then the Zune will have 13% of the whole market. At this point in time it probably has 0.000001% of the total MP3 player market. Yeah Happy Numbers!

        • Taddeusz
        • 13 years ago

        If you’ll note in the article it says 13% dollar share. That number looks inflated because of Zune’s $250 price tag. They don’t mention Zune’s actual market share. Considering the difference between the iPod’s dollar and market shares I would be willing to surmise that Zune’s market share is definitely below 10% if not below 5%.

          • Hattig
          • 13 years ago

          One report had it at 9% market share over the 4 days since the Zune launch. Another report had it at 7% in the week since the launch. Sandisk has about 8% of the market.

          The first report only included bricks and mortar sales. Apple sells a lot of iPods via its online store and places like Amazon. Zune isn’t really selling well on Amazon however …

          Microsoft had 3 millions Zunes made, and that doesn’t mean they’ll sell. Apple are looking to sell over 10 million iPods this quarter, some reports have it at around 15m even. Word of mouth has it that 1 zune is selling per 10 – 40 iPods (from comments on Slashdot, take it with a pinch of salt). If we’re kind, that means that they might sell half of the Zune’s they’ve made in the quarter. Of course, we’d have to factor in the early adopter / fanboy purchases in the first few days. It isn’t inconceivable that Microsoft will have a couple of million unwanted Zunes on their hands come the middle of next year. That’s the time to buy, when they’re heavily reduced. Mr Dawkins can save some of his hard earned money if he waits a bit longer….

            • Ricardo Dawkins
            • 13 years ago

            Maybe I’m waiting for CES 2007 and the new players from Cowon, iriver, Samsung, Sandisk or some rare company that can bring a player with the same features as the Zune I want on all my player…
            FM tuner on the device. Period.
            3+ inches screen size
            Video and TV-out.
            not scratch prone…(who wants that?)
            Gapless…(yeah, zune is not gapless but if you have been following it is coming)

            Creative is lost with that huge 60GB ZVM as my H320
            Samsung: where is the updated YH-J70 ?
            iriver: please place a 30GB inside the Clix..
            Cowon: X6…X6…X6…
            At least I compare players side by side…not like some ppl that goes for “trends”…yay

            And what if they reduce cost because the intro new 60GB and 80GB players ? They can afford to reduce price to “shock” Apple, the same way they can do that to the X360 against the PS3.

            • deathBOB
            • 13 years ago

            “And what if they reduce cost because the intro new 60GB and 80GB players ? They can afford to reduce price to “shock” Apple, the same way they can do that to the X360 against the PS3.”

            I doubt that. Apple is a big buyer (bigger than microsoft) in the portable hard drive/flash market. I imagine they get deep discounts, deeper than any other manufacturer.

            Selling the unit at a loss makes sense with game consoles, all games purchased thereafter directly benefit the console manufacturer. But portable music players can run on any music. Microsoft/Apple only make money on music that is bought through their stores (after the record companies get their (large) cut).

            • Taddeusz
            • 13 years ago

            Actually, Apple sells their iPod at a profit. Microsoft is having to sell the Zune at a loss to try and grab market share.

            • Ricardo Dawkins
            • 13 years ago

            the ipod has how many SKUs ??? 8 -10 ??? Are you counting old ipod, too? the Zune got 3 SKUs.

            With 100,000 to 500,000 Zune sales before Dec 31 2006…the damage is done…is the breach at the beach…period.

            125,00 1st G Ipod were sold in almost the same period in a EASY market. If MS sells more Zune than that on a HARD market…the breach is open. period.

            • deathBOB
            • 13 years ago

            It’s 9% of sales, by number and 13% by dollar. Not an impressive figure, but Microsoft is in it for the long haul.

    • A_Pickle
    • 13 years ago

    You know… that’s kind of sad. It isn’t that great a player… :/

      • SGT Lindy
      • 13 years ago

      I have a black zune and it does everything my ipod 4th generation Ipod could do….and it does not scratch.

      Give it 6 months are I bet I will be syncing to my PC over wireless.

        • Ricardo Dawkins
        • 13 years ago

        I’m with you..BTW what is SGT ?

          • d2brothe
          • 13 years ago

          Sergeant…

          • SGT Lindy
          • 13 years ago

          I was in the US military…when I got out I had just made the rank of Staff Sergeant which would be SSGT……but I never sewed it on before I left….so my rank on my sleave was SGT….or Sergeant.

          I like to play mostly military games, and only on the 360 now, so my Xbox Live gamer tag is SGT Lindy. Since Zune will use your Xbox Live account/name…it is also on my Zune.

          Lindy is a nickname I got in the military and part of my last name.

            • A_Pickle
            • 13 years ago

            So… Air Force, then? 😀

            • SGT Lindy
            • 13 years ago

            Roger that.

            • soccergenius
            • 13 years ago

            Off topic, but I don’t get your name. Senior Airman is before Staff Sergeant, unless you were still in when they had buck sergeants?

        • A_Pickle
        • 13 years ago

        y{<"Give it 6 months are I bet I will be syncing to my PC over wireless."<}y I hope you're right, but I still kind of fault them for playing the Sony card. "Let's overhype a product and deliver nothing particularly new or useful!" They have the hardware to make an absolutely invigorating and incredible product! WiFi was brilliant, you SHOULD be able to do more than share songs. You should've been able to use wifi to sync with your PC from the start. You should've been able to buy songs from an online music store directly from your Zune from the start. Don't stop there, you have 30 GB of HDD space in there, what would a 100 MB internet cache add? Might as well have added the ability to surf the web, if you so chose. Check your email and stuff. Then there's traditional "We're Microsoft, let's do something retarded." Now, I realize this may sound like heresy coming from me, but honestly: Why is my *[

      • Daggah
      • 13 years ago

      Uh, neither is the iPod?

        • A_Pickle
        • 13 years ago

        Lemme clear this up. I think the Zune and the iPod, relative to other players, are very good. I simply feel that the Zune, for what it was intended to be, underdelivered. I don’t really have sympathy for products like that, people shouldn’t buy them as companies that do that shouldn’t be rewarded.

        Just my thoughts.

          • Thresher
          • 13 years ago

          It the Zune had delivered on the wireless capabilities, including the ability to share music unencumbered (unless already DRM’d) and didn’t totally screw over people who had already bought music using the Plays For Sure plan, I think it would have been a homerun.

          Unfortunately, these two things are going to kill it or at very best, make it a marginal line for quite some time. They will have to make some substantial changes to these issues if they want to make a dent in Apple’s lead.

          • SGT Lindy
          • 13 years ago

          For 99% of Zune buyers they will never know what it was intended, or rumored to be.

          They will see it as a different MP3 player, that has wireless, has a bigger screen, does not scratch….and comes in brown. If they are somewhat geeky and own a 360 there is a bonus.

          I have little doubt that MS will quickly provide regular updates to the product. Wireless syncing would be a definite distinguishing point between it and the ipod. The sooner they can do it the better for them because Apple probably is at least 6months away from a wireless ipod.

            • Kharnellius
            • 13 years ago

            Refreshing to see someone who posts who understands the world of business.

      • d0g_p00p
      • 13 years ago

      I have a Zune and it’s far better of a media player than my old iPod and Zen Micro. Too each his own I guess.

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