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January 26, 2009

Zune decline heads to ‘zero’ market share

'iPod killer' status fades rapidly

Lexton Snol

Microsoft's iPod rival Zune MP3 player is suffering from a marked decline in sales and market share.

According to Microsoft's latest 10-Q financial report, "Zune platform revenue decreased $100 million or 54 percent reflecting a decrease in device sales."

Microsoft Zune 80

The Wall Street Journal estimates that these figures imply Zune revenue dropped from $185 million during Christmas 2007 to just $85 million in the 2008 Christmas quarter.

Second-generation Microsoft Zune review

Zune chokes on leap-year bug

This compares badly with the 22,727,000 iPods Apple shipped during its latest quarter - a three percent unit growth over the year-ago quarter. Apple's iPod generated $3.37 billion in revenue over the Christmas quarter, but this was a 16 percent decline in iPod revenue - suggesting a consumer shift to less expensive iPods and cannibalization of iPod sales by the iPhone.

The Wall Street Journal predicts that "at its much faster rate of decline, the Zune player looks like it's headed from low to no market share".

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Comments received


MacWorld Reader said on Tuesday, 27 January 2009

Problem is MS don't have the same conviction as Apple. The Zune was a repackaged Toshiba (or something like that) and launched as a 'revolution'. They dip their toe into things, release vaporware and if there's no money they stop bothering with it. How come Apple launch their products internationally and yet MS have launched only in the US? The confidence seems to be seriously lacking. MS - must try harder. Apple - well done.

MacWorld Reader said on Tuesday, 27 January 2009

As a footnote: MicrosoftTag looks like a great piece of software that is in beta. But it is a US only Beta (kind of, cause it still works in the UK and we can download it here) and the contact email address they give doesn't work so no queries can be got through. We should be embracing it, but what if it ends up in the bin because MS just can't organize themselves. Again: Apple can manage a whole portfolio of hardware and software, and still respond to their customers. MS one of the richest companies, with the largest OS user base, struggles to get software out once every 3-5 years and make a few keyboards and mice. How do they retain enough good faith to keep people buying their stuff?

g4rfi3ld said on Monday, 02 February 2009

Well I don't wonder why ...
Samsung, Cowon, iRiver ... all of them have invested millions of dollars in R&D, Researches etc. to establish themselves on the market and finally each one them has released one great product recently. I mean serisouly how can Microsoft except to re-do the market by throwing in a product with does not even look "that revolutionary" or which simply does not support the best features.

Samsung jz a.i. They started off with sum really bad products but they managed to get them back on track and voila ... the result is the P3 with better technical stats than the iPod Touch.

That's the way it should be and not vice versa.

Peace out!

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