When Microsoft Corp. (NASDAQ: MSFT) released the Zune digital music player last November, there were inklings that the company who could challenge Apple Inc. (NASDAQ: AAPL)'s iPod dominance had finally arrived. The splintered digital music universe of a zillion companies making MP3 music players was a dizzying array of incompatibilities and cheaply-made junk that gave Apple no challenge in creating an complete "music ecosystem" that has made it the undisputed champion in the digital music player arena.So, when Microsoft's Zune was launched, the company was attempting to compete with Apple head-on with nicely-designed products and a complete set of online music download tools that would attempt to re-create and complete Apple iPod experience -- but from Microsoft. Its Zune music and media player had a few features the iPod lacked -- like WiFi wireless networking -- but limited the usability of some of those advanced features as to make them useless to experienced digital music player fans.
Well, in the six months since the Zune was released, Microsoft has reportedly sold one million of the players, which is a pretty decent start on competing with the formidable iPod -- but it has a long, long way to go. Just as with the gaming division (xbox 360), Microsoft (most likely) is in this game for the long haul and probably intends on competing with Apple for several years in the digital music player space before even making a small dent in the iPod's marketshare. Redmond has plenty of patience and money to do this, so the Zune -- contrary to beliefs that it will die a quick death -- will be here for a while. One million units is decently impressive at this point, but there are more millions to go most likely.
[Disclosure: I own MSFT shares as of 5-28-07]











Reader Comments (Page 1 of 1)
5-28-2007 @ 5:57PM
Paul Johnson said...
Let's see the sales receipts for those 1 million Zunes. Pushing 1 million units into the retail pipeline is not the same as selling them.
5-28-2007 @ 8:14PM
fog city dave said...
I am very suspicious of this announcement as well. "Selling" 1M Zunes to retailers is not the same thing as selling 1M Zunes to end users. Microsoft has stuffed the channel to make similar claims in the past (Xbox 360 "sales" figures over the holidays), as they are able to leverage considerable pressure against the retail channel with Windows pricing and incentives. The numbers from NPD Group and others lead me to believe that PEOPLE have actually purchased around 600,000 at this point. Let's all take this news with a grain of salt and not get too excited about Apple's impending doom. Apple sells 1M iPods every single week and nearly twice that during the holidays.
5-28-2007 @ 8:16PM
Steve said...
The title of this article is completely absurd.
5-28-2007 @ 10:18PM
Bill said...
I am not surprised at 1 million sold. Bill Gates must have bought 999,999 of them.
5-30-2007 @ 8:52AM
mitch said...
Someone else noted that the actual quote says something like... when we complete the quarter in june, MS will have sold over 1 million... so they haven't done it yet.
the market was completely different when apple started - there were very few mp3 players and the market wasn't established... apple did that.
MS is late to the game and barely scratched the surface of market share.
5-31-2007 @ 2:02PM
cferry said...
I ride the bus, I travel, i work downtown in a cosmopolitan city on the Pacific that does massive tourist business, with a convention center and cruise ship docks right next to my office. I frequent consumer electronic stores that have prominent iPod displays. I see iTunes ads every time I watch television. I see many iPods in use every day. I have NEVER seen a Zune with my own eyes. Not once. If the stores bother stocking them at all, they must be in dusty piles in little-seen corners. I can only imagine there is some massive channel stuffing going on here.
6-03-2007 @ 3:50AM
Zach H said...
Agreed. The title of this article is patently absurd!
Ridiculous little Zune. Nice try.
6-03-2007 @ 2:25PM
Jay said...
I own a Zune. Absolutely love the thing and happy I bought it, but I've only seen a handful of them in use by others in my business travels. A million on them sold isn't that incredible at this point. I mean its been awhile since the early hype associated with the initial launch.
Ipod was first to this party and they have established the standard for others to chase. In my opinion, Microsoft will never take top sales position in the music player space, even with an outstanding player. But that certainly doesn't bother me. I've seldom been one to follow the crowd either.
6-05-2007 @ 10:50AM
ralphy said...
Like i said, I have an IPOD and a Zune, to be honest the Zune has more feature and a bigger screen (sounds better, wifi,) the ipod has the wheel and is nicer looking, but i can see zune selling millions more
11-13-2007 @ 3:17PM
tom said...
hahahahhahahhahahahahahahahahahahahahahah
......hahahahahah yeah right.