Newsflash: analyst says Apple iPod beating Microsoft Zune

“‘I have never heard of the Zune,’ one retail clerk was quoted as saying in an analyst’s note comparing Microsoft Corp.’s new music player to its much more popular rival, Apple Computer Inc.’s iPod,” The Associated Press reports.

AP reports, “Piper Jaffray analyst Gene Munster said in a note to investors Tuesday that a survey of clerks at 40 big box retailers found that only 8 percent recommend buying the Zune, while 75 percent recommend the iPod. ‘In fact, some MP3 player salespeople had not even heard of the Zune, despite the fact that they sold it in their store,’ the analyst wrote.”

“Due to what he called a less than favorable reception, Munster doesn’t expect the Zune to materially affect iPod sales in the current quarter,” AP reports.

MacDailyNews Take: Except to perhaps positively affect iPod sales, of course.

AP reports, “The Zune is not generally seen as a threat to the iPod, which dominates the portable music player market. Shaw Wu, an analyst for American Technology Research, has predicted that Zune’s success may instead come at the expense of other makers of portable music players, such as Sony, Samsung and Creative Technology Ltd… As for reviews, Munster noted that they have been neutral to negative.”

Full article here.
Zune: trying to corner the Apple Table Scraps market one mistake-gift giving grandma at a time. Fact: Forget about iPod, also-ran SanDisk is beating Zune to a pulp. We have to wonder, will reported Zune sales totals be revised to include all of those brown lumps of, er… coal that will be returned for iPods on December 26th? And, would the Chicago Sun-Times’ review, “Microsoft Zune experience about as pleasant as having an airbag deploy in your face” be considered “neutral” or “negative?”

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35 Comments

  1. I hop Creative’s lawyers were smart enough to ensure in their Apple settlement that they could build a dock connector into future versions of the Zen so that their player could take part in the iPod ecosystem which puts iPod connectivity into cars and airplanes, as well as make the Zen compatible with the full world of iPod accessories, which would effectively relegate Microsoft to an even worse also-ran position in this market than they already are.

    I then hope that Creative takes some of Apple’s $100 million and files a trademark infringement suit against Microsoft because “Zune” is too damned close a name to “Zen™”.

    I then hope that Creative takes some of Apple’s $100 million and files a breach of contract suit against Microsoft because Microsoft has shit all over its Plays for Sure partners by rolling out the Zune.

  2. “I have never heard of the Zune,” one retail clerk was quoted as saying in an analyst’s note comparing Microsoft Corp.’s new music player to its much more popular rival, Apple Computer Inc.’s iPod.

    Anonymous retail clerk, eh? Hmmm. I suspect that this person is dancing around the truth. Even in a plastic-coated box the stench of Zune is inescapable and the humiliation of being seen in close proximity to a Zune staggeringly embarrassing.

    Ballmer has vowed to increase his daily consumption of fiber and Bisacodyl to increase production levels of Zune.

  3. Microsoft’s Zune sales pitch can be summed up thus:

    Zune: Everything you hate about the iPod, with none of the stuff people love. But it has an FM tuner!

    What I find funny is that Microsoft is trying to distance the Zune brand from the Microsoft brand in order to not negatively impact Zune by not prominently displaying the MS logo on packaging and marketing, then they go ahead and require you to buy ‘Microsoft points’ to use to purchase music from the Zune marketplace. Am I the only person who thinks that strategy is a tad schizophrenic?

  4. Here in my local shopping mall there is an Apple Store sitting right next to a Sony Style store. The two stores are about the same size.

    Compared to most stores in the mall, quite a few people are in the Sony store, most looking at TVs, 1 at the cell phone display, 1 tapping away on a Vaio, and a couple are looking at accessories. The Walkman display is ignored.

    By comparison, the Apple Store is packed. Even in the afternoon. There are more people looking at iPods than are in the whole Sony Store.

    What does surprise me are the six people hanging out at the Dell kiosk. Kiosk? Not even a store?

  5. It doesn’t surprise me. I haven’t seen one of these Zune commercials yet. What happened to the big time advertising dollars Microsoft was throwing behind the project?

    If it wasn’t for the internet, I’d barely know what the hell a Zune is. I’d be able to recognize the iPod shuffle, however.

    RMN

  6. I finally got to “see” a zune at my local Target store. What amazed me is – the thing was so covered, locked and glued down to the display that the only thing you could do was listen to it. Couldn’t judge it’s full size, couldn’t judge the weight, couldn’t actualy experience it at all.

    Just like in the commercials, maybe if they can’t actually see it, we can fool them into buying one.

  7. @TommyBoy

    Dell actually has a whole “store”, not just a kiosk, in the Northpark Center Mall in the Dallas area – upstairs and just a few doors down from the Apple Store on the same wing.

    Funny thing is, you can’t actually purchase something at the Dell store and expect to walk out with it. And there are usually more employees in the store than potential customers, at least every time I’ve walked by the last several months – including this past weekend, supposedly the biggest sales weekend of the year.

    The Apple Store was packed this weekend.

    And there’s another Apple Store less than 5 miles away. And another less than 15 miles away in the other direction. And a fourth store about 25 miles away.

    Haven’t ever walked into one of them where there wasn’t a decent-sized crowd.

  8. I stopped by my local game store and they had a Zune on display behind the counter. I asked the clerk if they sold any. He said not even one has been sold. In fact, he said no one had even asked to see it or showed any interest.

  9. I am now wondering whether Zune’s release will actually INCREASE iPod sales. There was a choice before – you could buy an iPod or an MP3 player. But now anything that is not an iPod carries a significant risk that it may be incompatible with everything in the near to short term. Why? Well, its too bad if you bought into PlayforSure – its now dead as a dodo. And if Zune fails dismally, MS will abandon it and leave its Zune customers with a costly brown plastic brick which does nothing.

    If the buying public sees buying anything other than an iPod as a risk (and they would be right!) then I would expect iPod sales to increase.

  10. “Newsflash: analyst says Apple iPod beating Microsoft Zune”

    If only that were true. Keep dreaming MDN. Zunes are remarkably poplular from where I sit. 2 out of the 5 IT guys where I work have them. They squirt each other all the time. I’m bringing my Zune in to work tomorrow and we’re gonna squirt each other at lunch. A three-way squirt. Try that with an iPod—oh that’s right—you can’t. You know what iPods are? They’re antisocial.

    This is only the beginning of a revolution in portable entertainment. I’ve said it before and I’ll say it again: I would hate to be Apple right now, chasing Microsoft’s original, state-of-the-art technology. Again.

    And another thing, Amazon, shopping malls and big-box electronics retailers aren’t Zune’s target markets so of course the clerks have no idea what a Zune is. First, and this is a fact, you won’t find any teenage shoppers at those outlets. Second, the Zune is an enigma, so it’s difficult to explain anyway. Is it a radio with the built-in FM? Is it an MP3 player? Is it a vehicle for social networking with the robust WiFi implementation? iPod lemmings, I hope you’re sitting down ’cause here comes the answer and it’s gonna blow your mind: It’s all three. Take that.

    Welcome to the Social.

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