Microsoft Zune plummets to 5th place in U.S. digital media player market share with 2.1 percent

“Microsoft Corp.’s Zune device dropped to fifth place from second in the U.S. market for digital media players in its second week in stores, market researcher NPD Group Inc. said,” Dina Bass reports for Bloomberg.

Bass reports, “Zune captured 2.1 percent of the market in the week ended Nov. 25, said Stephen Baker, an analyst at Port Washington, New York-based NPD, in an interview today. Baker said Apple Computer Inc.’s iPod remained the leader, with 39.4 percent that week, based on units sold.”

Bass reports, “Zune’s market share declined as SanDisk Corp. boosted sales with a 50 percent price cut on its media players, taking a 39.3 percent share and knocking Microsoft from the No. 2 spot it occupied in its first week in the market. Redmond, Washington- based Microsoft sold about the same number of units as the previous week, failing to keep pace with rising holiday sales.”

“Baker said SanDisk typically cuts prices the week of the U.S. Thanksgiving holiday, taking more of the market from Apple than usual,” Bass reports.

“Zune took 9 percent share of units sold in its first week on the market, beating out SanDisk for second place after iPod in the week ended Nov. 18. Apple had a 63 percent share that week. ‘Second place for Zune is by no means a done deal,’ said Michael Gartenberg, an analyst at New York-based JupiterResearch,” Bass reports. “Creative Technology Ltd. was third, while Memorex International Inc. was fourth. Walt Disney Co. tied for fifth place with Microsoft. Overall unit sales rose 26 percent from the same week of last year, Baker said. NPD doesn’t disclose the number of units each company sold.”

Full article here.

“iPods led all manufacturers with 66 percent of dollars spent in the category, while SanDisk had 18 percent. The difference is explained by pricing–the average price of SanDisk players sold during the Black Friday week was $51, versus Apple’s $187, due to heavy promotional discounts offered by SanDisk,” Erica Ogg and Tom Krazit report for CNET News.

Ogg and Krazit report, “Apple ‘actually had a pretty good week,’ said Baker. ‘Considering SanDisk is out there giving stuff away, selling stuff for $29 or $39 dollars that would normally be $89 or $100 dollars.'”

Full article here.
All is proceeding pretty much exactly as we’ve been expecting all along. Redmond’s first week fake market share jubilation has been dashed all to hell with utter repudiation. LOL

Note: Regarding the actual market share numbers for iPod, NPD does not report sales from Apple Retail Stores, the Apple Store online, Wal-Mart, or Amazon.com, which, as you might imagine, skews the iPod numbers wildly from week to week.

Related articles:
Analysts: Microsoft needs to ‘rethink’ as interest in Zune fades fast – December 01, 2006
Enderle on Apple iPod vs. Microsoft Zune – November 30, 2006
The Channel Checkers: 81% recommend Apple iPod – November 30, 2006
NPD: Microsoft Zune hits 9% in US market share in first week, takes #2 spot from SanDisk [UPDATED] – November 29, 2006
Microsoft says Zune sales in line with their expectations – November 29, 2006
Newsflash: analyst says Apple iPod beating Microsoft Zune – November 28, 2006
Thurrott reviews Microsoft Zune: ‘a joke, a travesty, I can’t imagine what they were thinking’ – November 28, 2006
Apple iPod clearly immune to Zune – November 27, 2006
Zune reinforces Microsoft’s dorky image, pushes people toward Apple iPods, Macs – November 27, 2006
Ihnatko: Microsoft Zune experience about as pleasant as having an airbag deploy in your face – November 24, 2006
TheStreet.com: It’s not looking good for Microsoft’s Zune; bad press may taint brand for years – November 24, 2006
Amazon’s bestselling MP3 players list chronicles Microsoft Zune dud – November 20, 2006
Bill Gates: Apple iPod ‘phenomenal, unbelievable, fantastic’ – November 16, 2006
Cramer’s Mad Money: Microsoft’s Zune is pathetic; Vista may cause people to turn to Apple Mac – November 15, 2006
Microsoft’s Zune selling like snotcakes – November 15, 2006
Microsoft’s Zune incompatible with Windows Vista – November 14, 2006
Dvorak: ‘If anything is doomed to failure, it’s Microsoft’s Zune’ – November 14, 2006
Ballmer: Zune’s Wi-Fi will help Microsoft challenge Apple’s iPod+iTunes – November 14, 2006
CNN ridicules Microsoft’s Zune while gushing over Apple’s new iPod shuffle – November 14, 2006
Engadget: Microsoft’s Zune software: ‘It sucks’ – November 13, 2006
Early Microsoft Zune customer greeted with Zune ‘Installation Error’ – November 13, 2006
Zuned: What’s the ‘deal’ with Microsoft Points? – November 12, 2006
Seattle Post-Intelligencer: Apple has no need to worry about Microsoft’s cumbersome, chunkier Zune – November 11, 2006
BusinessWeek: ‘By this time next year, Microsoft’s Zune will be considered a dismal failure’ – November 10, 2006
USA Today’s Baig: Microsoft Zune is no Apple iPod – November 09, 2006
Forbes: Microsoft’s Zune stinks; like ‘Microsoft Bob,’ only more embarrassing – November 09, 2006
NY Times’ Pogue: Zune should come in green to match Microsoft’s iPod envy – November 09, 2006
Mossberg: MS Zune has ‘too many compromises, missing features’ vs. ‘thin, sleek, elegant’ Apple iPod – November 09, 2006
Microsoft to pay Universal for every Zune sold – November 09, 2006
Analysts: Microsoft Zune may end up being a flop – November 08, 2006
Are 58% of iPod owners really thinking of a Zune switch? – November 08, 2006
Survey: 58% of iPod owners planning another MP3 player purchase will consider Microsoft’s Zune – November 01, 2006
Zune is from Microsoft, but Microsoft doesn’t want anybody to know about it – November 07, 2006
Microsoft Zune to be US-only, no firm plans to launch anywhere else globally – November 03, 2006
Five Microsoft Zune TV commercials – November 02, 2006
JupiterResearch: Apple’s iPod will dominate for foreseeable future; Microsoft’s Zune insignificant – October 25, 2006
Ellen DeGeneres Show gives away Microsoft Zunes, studio audience goes berserk – October 23, 2006
More Microsoft Zune myths explored – October 20, 2006
Five more Microsoft Zune myths – October 18, 2006
Microsoft Zune intensifies chaos in Apple iPod+iTunes also-ran market – October 16, 2006
Newsweek Q&A: Apple CEO Steve Jobs discusses iPod’s impact, Microsoft’s Zune, and more – October 15, 2006
Microsoft’s Ballmer: Zune device not money loser, wishes Apple’s 30GB iPod was $299 instead of $249 – October 11, 2006
Microsoft’s consumer electronics track record: long string of failures – October 11, 2006
MP3.com founder: ‘Zune will be an expensive failure for Microsoft because consumers aren’t stupid’ – October 06, 2006
Microsoft fails to secure key Zune domains – October 04, 2006
Microsoft rigs Zune with tricky pricing and proprietary money schemes – October 03, 2006
Why Microsoft’s Zune won’t kill Apple’s iPod – October 03, 2006
10 Apple iPod vs. Microsoft Zune myths – October 02, 2006
Analyst: Zune could lead to ‘civil war’ between Microsoft and Windows Media partners – September 29, 2006
Thurrott on Microsoft’s Zune: ‘The makings of a disaster, what the heck are these people thinking?’ – September 29, 2006
Analyst: Microsoft Zune’s as good as dead on arrival – September 28, 2006
Microsoft sets 30GB Zune price at $249.99 – September 28, 2006
How Microsoft’s Zune can kill Apple’s iPod – September 21, 2006
Microsoft’s Zune insanity – September 21, 2006
The Microsoft Zune 1.0 dud – September 20, 2006
Microsoft’s underwhelming Zune a ‘viral DRM’ device – September 18, 2006
SanDisk teams with RealNetworks against new common foe: Microsoft Zune – September 18, 2006
Creative does Apple’s dirty work by immediately attacking Microsoft’s Zune – September 17, 2006
Motley Fool’s Jayson: Microsoft’s ‘just plain ugly’ Zune a meager offering, not an iPod killer – September 15, 2006
What’s in a name? ‘Zune’ a French-Canadian euphemism for penis or vagina – September 15, 2006
Crave at CNET: ‘Microsoft Zune, all the excitement that brown can bring’ – September 15, 2006
Microsoft’s Zune underwhelms – September 15, 2006
Enderle: Microsoft Zune ‘a design mistake’ – September 15, 2006
Microsoft hypocrisy exposed with Zune: What ever happened to ‘choice?’ – September 14, 2006
Analyst: Microsoft Zune with fake scroll wheel ‘hardly an Apple iPod killer’ – September 14, 2006
Analyst: Microsoft Zune won’t spoil Apple’s biggest iPod Christmas ever – September 14, 2006
Microsoft unveils Zune 30GB player, Zune Marketplace; declines to disclose prices – September 14, 2006
Analyst: Microsoft’s Zune an ‘underwhelming’ repackaged Toshiba Gigabeat; no threat to Apple iPod – August 30, 2006
Microsoft confirms brick-like Zune to be made by Toshiba – August 25, 2006
Microsoft Zune is chunky brick made by Toshiba – August 25, 2006
Microsoft to sell single Zune model this fall, rumors of Wi-Fi capability were greatly exaggerated – August 10, 2006
Microsoft to spend hundreds of millions, several years on Zune trying to catch Apple iPod+iTunes – July 27, 2006
Zune: Apple cannot lose. Microsoft cannot win. – July 26, 2006
Opinion: More blood on Apple iPod’s Click Wheel: Microsoft pulls plug on Zune – July 25, 2006

71 Comments

  1. It mirrors human behavior. When oppressed people are down and out and at the bottom of the social pecking order, they put their energy into fighting each other for position, rather than uniting to fight the top dog.

    SanDisk may emerge from all of this as the legitimate #2, and may get about 25% of the market from die-hard Apple haters who would rather cut off their own noses to spite Jobs and co.

    And all of this is exactly as MDN predicted, so kudos.

  2. Yeah, these numbers don’t add up.

    So they’re saying the iPod dropped from 63% share all the way down to 39.4% last week, while SanDisk went skyrocketed up from 8% to 39.3% due to a price drop??

    I’m sorry, but their numbers are total bullsh*t. There is absolutely no way SanDisk sold as many players as Apple did last week, especially considering Black Friday was during that time period.

  3. I always look at the Sunday newspaper ad inserts to see how a product is advertised. Unfortunately for the Zune, they were onoly in the Circuit City ad as far as Electronics retailers go. They were in the Sears ad and the office supplies ads. Zune won;t sell many at Staple and Office depot. And the Circuit City and Sears ads did not advertise Zune on the first page. You don’t advertise what is not selling.

    Of note: Circuit City’s ad touted Macintosh sales have begun. Interesting.

  4. “Baker said SanDisk typically cuts prices the week of the U.S. Thanksgiving holiday, taking more of the market from Apple than usual.”

    Maybe the numbers are right afterall. They say SanDisk took heavy slashes in price. And as MDN said, “NPD does not report sales from Apple Retail Stores, the Apple Store online, Wal-Mart, or Amazon.com.”

  5. TowerTone wrote: “Wal Mart could probably sell more if they didn’t have them on the shelf between the Charmin and Quilted Northern…”

    Yeah, but how else would WalMart sell toilet tissue if they put the Zune elsewhere in the store? Can you say MontaZUNEma’s revenge? Thought so!

  6. This is purely manipulation of statistics. Once SanDisk and Apple stop cheating with their faux price cuts designed solely to bolster apparent marketshare, it will become obvious that Microsoft is really in the lead. The superior design and features of the Zune will win over consumers in the coming weeks. People will finally learn to reject the poorly designed, ugly brick that is the iPod and embrace the intuitive and sleekly designed Zune.

    Welcome to the social.

  7. Big F’ing Deal,

    Kind of reminds you of Mac’s market share.

    Except that the Mac has 6% of US market share and is rapidly growing share instead of totally collapsing like Zune’s.

    Not very reminiscent after all, is it?

  8. “Once SanDisk and Apple stop cheating with their faux price cuts designed solely to bolster apparent marketshare…”

    “iPods led all manufacturers with 66 percent of dollars spent in the category, while SanDisk had 18 percent. The difference is explained by pricing–the average price of SanDisk players sold during the Black Friday week was $51, versus Apple’s $187, due to heavy promotional discounts offered by SanDisk.”

    No “faux price cuts” on Apple’s behalf.

  9. Microsoft seems to think that they will get many chances with new versions of the Zune. But they have already besmirched the brand by collecting almost uniform ridicule. They overcame negative reviews on Windows when they finally won the operating system dominance war in the early 90’s, but the Internet has changed the game. The demographic for the mobile media players is well connected to the net and aware of Zune’s rotten reputation.

    Welcome to the social, Microsoft.

    MW: efforts — as in “All Microsoft’s efforts with Zune are doomed to come to nought.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.