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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]

Zune beating the iPod? Microsoft's music player sells one million units originally appeared on BloggingStocks on Mon, 28 May 2007 15:13:00 EST. Please see our terms for use of feeds.

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