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Zune market share slips in February

The market share for Microsoft's Zune device was 8.7 percent among hard-drive based portable music players in February in the U.S., according to NPD Group statistics cited by the Zune team in its regular monthly update this afternoon. Checking past reports, that's down from 9.9 percent market share in January and 10.2 percent in December.

Microsoft said in the update that the 8.7 percent of unit sales was still enough for the No. 2 position in the hard-drive based market. It's more than a safe bet that the hard-drive based iPods were No. 1 in that market segment, but I've put in a call to NPD to see if I can get the full rankings.

I asked a Microsoft representative about the trend, and this was the response:

"At this point in the product lifecycle, we don't view month-to-month changes of around 1 percent to be significant in NPD data. You can look to NPD as the industry guide for numbers, but you should understand that NPD does not track all retail stores in the U.S. We're still in line with our expectations for this time period."

Van Baker, industry analyst at research firm Gartner, said the trend illustrates the need for Microsoft to come out with more types of content, including video, and new variations of the Zune device, to compete with Apple's flash-based iPod Nanos and 80 gigabyte iPod. (Currently the Zune is only available in a 30 GB model.) Microsoft has said it is working to expand the Zune lineup.

At the same time, Baker said a change of one or two percentage points in monthly market share isn't a big deal for the company at this point.

Posted by at March 28, 2007 4:21 p.m.
Category:
Comments
#28161

Posted by 8bitjoystick at 3/28/07 6:38 p.m.

I seriously doubt that the Zune will still be on the market in a year. I have never met a Zune owner and never met anyone personally who was really excited about it and did not work for Microsoft.

#28165

Posted by unregistered user at 3/28/07 7:09 p.m.

I really like the Zune, actually. I've had it since december and this is my 4th MP3 player. The first 2 were the Dell DJ's -- the 3rd was a Philips 6gb MP3 player (had a great touch interface too btw) -- and now the Zune. Serveral reasons I like the Zune -- #1 the marketplace where I can download whatever I want for 15 bucks a month. #2 I can sync it to more than 1 computer. #3 The interface is nicer and more intuitive -- whoever said going around in a circle to go down a page is more intuitive is crazy. Its like turning your steering wheel in your car to keep it going straight. It makes no sense to me.
#4 Total customization of the device. I can name it, put virtually any piece of music or video on it I want. Change my backgrounds, equalizers, etc. #5 Its actually a conversation piece when I have it. Everyone wants to look at it and find out more about it and asks tons of questions about it. My friends that have Ipods -- no one ever talks about them.

I'm not going to sit here and say its perfect. Its not. But I play it for about 12 hours a day or so -- and the battery lasts longer than I play it -- it has cool useful features for me.

In the end -- there is not just 1 device for all people. Sure, the Ipod is shiny and pretty for oh, about a day or two. Sure, it may be some sort of odd status symbol. But at the end of the day -- I hate to have what everyone else has. I need it to play music, have a subscription service, play videos and show pictures -- and it does all of that very very well. It doesn't scratch when I put it in my pocket (in fact, it looks like brand new even though I've had it 3 months. My friends Ipod was handled with Kid gloves and it was scratched all over within weeks and mine looks like it did when it came out of the box).

So, say what you will about the Zune. But its got a unique design, does lots of things very well. Sure, it doesn't support 1,000 file formats -- but then again, I'm ok with the ones it does.

Get what you want in the end -- but make no mistake -- when Microsoft is in it to win -- they are in it to win. A few years ago people thought the Xbox was a joke -- and it beat out the likes of PlayStation, Nintendo and other smaller players.

They don't always get it right on the first shot -- but they get it right eventually!!

#28180

Posted by unregistered user at 3/28/07 9:42 p.m.

"I asked a Microsoft representative about the trend, and this was the response:"

Folks in Redmond live in an altered state of reality where three sequential months of marketshare declines is actually a good thing! Same with Zune.net being totally down for a good chunk of yesterday. Reading the excellent review provided by the user above, you realize how close they came to actually producing a winner. Why they didn't give up the Xmas season to get the product right, eludes me. And are they ever going to get that update out to the few brave souls who bought it and are experiencing skipping?

#28207

Posted by unregistered user at 3/29/07 8:15 a.m.

They fixed the skipping issue. Just download Zune software version 1.3. I think you can get it from the Windows Update site.

I can't wait to see what the next zune release phase will roll out.

#28257

Posted by 8bitjoystick at 3/29/07 2:28 p.m.

Since I use my iPod with my Mac, PC and Xbox 360, a Zune would not work for me since it does not work at all with Mac OSX. It is strange since Mac users are big buyers of digital media players. I mean Apple can make a cross platform music player with cross platform DRM but Microsoft chose not to.

#29225

Posted by unregistered user at 4/11/07 4:08 a.m.

If Microsoft want to compete with the IPOD they have to do a lot more. They have to do something better. But they haven't...

#30025

Posted by DestinedtoGame at 4/17/07 10:54 p.m.

I am sorry the Zune may have its good points but is also very bad. My Zune screen like many others cracked (the inner lcd screen). I had to report Zune to the BBB before they would do something about it.

#30891

Posted by unregistered user at 4/25/07 1:59 p.m.

as i see it, the ZUNE is just a rip off of the i-pod. it seems that microsoft will monopolise anything technological because they NEED to have everything under their control. i suspect the zune will have been forgotten by next year, if that.

#68542

Posted by unregistered user at 11/20/07 11:55 a.m.

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#88290

Posted by unregistered user at 1/20/08 11:26 p.m.

- I hate to have what everyone else has

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#131521

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great updating

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#135556

Posted by unregistered user at 6/3/08 5:41 p.m.

Zune, like most things produced by Microsoft, is just a rip-off of innovation from other companies.

I too have never met a Zune owner.

#138986

Posted by unregistered user at 6/15/08 11:56 a.m.

I'm an ipod owner and I have to say the 1st gen of zune wasn't remotely appealing. But the other day I walked by a 2nd gen zune at an electronic store and played with it a bit. the UI is actually more intuitive than the IPOD. Since I already have an IPOD I'm not in the market for another over priced mp3 player but if i were I would say Zune would be at the top of my list and probably the device I would get.

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