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Zune swoon
November 28, 2006
Hm. Seems Microsoft hasn’t got it quite right with Version 1.0 of its Zune player. Noone thought the first Zunes would leave much of a dent, a blemish or even a pin-prick in the iPod’s unassailable market share - but the early signs do not look good measured against even those modest expectations.
As of Tuesday afternoon, the Zune player had fallen to number 95 in Amazon’s list of 100 best-selling electronic gadgets in the US at what is a peak moment in the Christmas sales season. That puts it somewhere below the American Red Cross’ emergency radio and Logitech’s advanced universal remote.
Even more of a concern for Microsoft, Creative’s 30GB Zen Vision and SanDisk’s 2GB flash player make it into Amazon’s top 25. Zune was meant at least to provide some serious competition to other MP3 players as Microsoft works out how to take on Apple with future versions.
Adding insult to injury, Piper Jaffray analyst Gene Munster claims to have found salespeople in some electronics stores that stock the product who have never even heard of it. At least Version 2.0 should arrive a lot faster than the second generation Xbox.
Update: Seems Zune got off to a good start. Figures from NPD in the US suggest it sold well in the first few days. As of Wednesday it’s up to 64 on the Amazon hit list, still below SanDisk and Creative.
Richard Waters, San Francisco
Everyone seems to be citing the Amazon stats as proof that sales of Zune are nearly non-existent. But what they’re ignoring are the 30,000 (physical) retail outlets that Zune is sold through here in the U.S.
Moreover, because Zune is only offered in the U.S. at this point, the analysts are also overlooking the all of the sales to tourists visiting the U.S., who would otherwise have to pay a huge premium to get one shipped to their home country (including VAT). And with weak dollar, those Zune purchases become all-the-more attractive to them.
Gene from ZuneChannel.com
Posted by: Zetta | November 29th, 2006 at 2:10 pm | Report this comment“ZuneChannel.com”? Not a wee bit biased, are we? How about just coming out and admitting that once again Microsoft came to the party late and brought only average hardware and a crippled service with them. Abandoning previous media purchases was a total mistake, and rather than admit it, they will just try to dominate the market by sheer will rather than any innovation.
Posted by: Thog here in reality land. | November 29th, 2006 at 2:42 pm | Report this commentThanks for the unbiased review, Gene from ZuneChannel.com!
I’m sure Microsoft would love to believe that tourists buying the Zune in retail outlets rather than online will account for stratospheric sales not reflected in the Amazon.com chart, but the fact is, Amazon is a bellwether for public sentiment on the whole - and the response is clear.
Who NEEDS Zune when you can get a time tested product that does exactly the same thing from a company that has made it its mission to be innovative vs. evil. Sure, Zune can “squirt” songs, but with no one to squirt to or from, and with limited usage of songs even if you do, it’s nothing more than a marketing angle.
Microsoft clearly sees this as a long term fight, but as long as their product cycle matches the iPod, as long as it provides the same functionality at the same price, and as long as it carries the loathsome “Microsoft” brand, the choice is extraordinarily clear… and I’m surprised they don’t see that.
On a final note, it irks me that the Zune store uses credits instead of dollars. It’s 79 “points” to buy a song, but buying 79 points will cost you .99 cents. And Microsoft wonders why consumers don’t trust them?
Sorry, Gene from ZuneChannel.com, but a “street team” post that implies foreign tourists are going to make up for these fundamental shorfallings is naive, at best. Insulting, if you ask me.
Posted by: Ray from Notamicrosoftspokesperson.com | November 29th, 2006 at 2:49 pm | Report this commentHey, at least give Gene credit for admiting his biases; he didn’t need to include his affiliation.
I think the Zune has a number of problems, many self-inflicted. How hard would it have been to support PFS files? And the Zunepoints are idiotic… But I think is is premature to count Zune out. Like most MS products, I expect Zune to display a Borg-like ability to adapt and improve… I’m surprised anyone is buying a 1st gen MS product.
Posted by: Keith Wolter | November 29th, 2006 at 5:57 pm | Report this comment“Gene” from “ZuneChannel.com” seems to be a professional Zune-blog/review troll — I have seen similar inane posts from him/her in at least a couple of other places (e.g., just yesterday, in response to a scathing SF Chronicle Zune review: see http://www.sfgate.com/cgi-bin/blogs/sfgate/detail?blogid=18&entry_id=11298)
It is truly embarrassing how pathetic and pitiful this company is getting to be….
This product introduction will live forever — as a b-school case study (the New Coke/Classic Coke story is getting a bit old). My advice to Gene (and colleagues) is, better bail out of this one fast, since few months from now, when they are forced to shut down this disastrous project and are pounding the pavement for a new career, they are not going to want to put anything related to Zune on their resume.
Posted by: anant from ithinkallmyipodsandmacsarejustfine.com | November 29th, 2006 at 6:13 pm | Report this commentWhat this proves is people realized SanDisk and Creative have better iPod alternatives. The Zune is just a bad copy of the iPod and they deals they have done to keep the music industry happy are just plain awful. Microsoft’s big bucks will ensure this thing is not D.O.A. but the public has spoken.
Posted by: Anon | November 29th, 2006 at 7:43 pm | Report this commentMiKKKro$oft…..am i right?
Posted by: Eric | November 29th, 2006 at 8:37 pm | Report this commentWhile there is indeed the hypothetical possibility that a legion of tourists are boosting Zune sales figures, it is an actuality that said tourists are also boosting iPod sales (not to mention Mac sales). For details, see the article:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aKF7L6hJZbdw&refer=home
Posted by: Dr. Click | November 29th, 2006 at 9:14 pm | Report this commentOh yeah, the Zune is kicking butt and taking names. Let’s see, the top ten selling on that Amazon link includes 6 iPods. Ooooh, go Microsoft, play fudgy with the numbers anyway you like, the Zune is DOA. Maybe it will sell in a few years as a collector’s item.
But I do expect MS to lick it’s wounds and come back with a much improved product (which will likely not be compatible with the current Zune).
Posted by: Johnny | November 29th, 2006 at 10:28 pm | Report this commentFYI they are at version 1.1 right now. just clearing that up.
Posted by: lenny | November 30th, 2006 at 2:39 pm | Report this comment