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Microsoft's Zune being outsold at Amazon -- by picture frames

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When items like pictures frames and analog turntables are outselling the media-hyped Microsoft Corp.'s (NASDAQ:MSFT) Zune digital music player shortly after its release and during the hottest shopping time of the entire year, something may be amiss, yes?

Sales of Microsoft's Zune digital music device ranked Number 58 on the list of Amazon.com's best-selling electronic devices as of yesterday -- and, trailing other hot gift items such as ... record turntables and digital picture frames. Ouch, Microsoft.

Although the Zune appears to be a very well-designed digital music device (it's a Toshiba unit with Microsoft's design, really), its launch appears to have been too hurried. Despite the Zune's entire environment (player, online store, accessories) announced only at the end of the summer, Microsoft launched it for this holiday season. While Microsoft had to launch in time for the holiday season, it may not have been really ready to compete with the iPod universe. Microsoft cannot dethrone a product like Apple Computer Inc.'s (NASDAQ:AAPL) iPod that easily -- even with the large financial heft Microsoft has.

In fact, six of the Amazon.com Inc.'s (NASDAQ:AMZN) top eight-selling electronic devices were made by Microsoft's rival Apple. Microsoft's Zune, on the other hand, is only a whimper right now at Amazon.com. That is not good news for Microsoft in the midst of the holiday shopping season.

[Disclosure: I own MSFT shares as of 12-1-06]

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Last updated: November 27, 2009: 04:25 AM

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