Microsoft says Zune sales in line with their expectations

“Microsoft Corp. said initial sales of its Zune music player are in line with the company’s expectations amid reports of waning interest in the device that competes with Apple Computer Inc.’s iPod,” Dina Bass reports for Bloomberg News.

“Initial sales ‘indicate we are on track to meet our internal business projections,’ Zune Director Jason Reindorp said in an e-mailed statement. Microsoft has refused to disclose sales or projections,” Bass reports. “But a survey by Piper Jaffray & Cos. analyst Eugene Munster shows few retailers are recommending the device.”

Bass reports, “iPod, which has a 75 percent share of U.S. retail sales for such devices, is garnering more recommendations than a year ago, said Munster. Clerks recommended the iPod 75 percent of the time in the most recent survey, compared with 68 percent a year ago. Some clerks who spoke to Munster said they hadn’t even heard of the Zune even though the device was available at their stores.”

Full article here.
Microsoft certainly must have had low expectations. It looks more and more to us like the whole Zune fiasco was intended mainly to throw a monkey wrench into Apple’s next negotiations with the music labels than to be a viable product/service. If so, Microsoft is treating the few Zune customers they do have as pawns; that’s a pity, but it’s hardly surprising. Giving Universal Music a cut of device profits is a bad deal to which we don’t expect Steve Jobs to capitulate.

Related articles:
Universal CEO Morris wants iPod royalty fee from Apple – November 28, 2006
Microsoft’s Zune selling like snotcakes – November 15, 2006
Universal Music Group CEO calls iPod users thieves – November 11, 2006
Following Zune deal, Universal expected to demand iPod royalties from Apple – November 10, 2006
Microsoft to pay Universal for every Zune sold – November 09, 2006

58 Comments

  1. Fantastic news! The overwhelming market response and now Microsoft’s statement that Zune sales are skyrocketing prove that Redmond has another winner!

    Q: How many did Microsoft expect to sell?
    A: Way more Zunes than your ugly, hard to operate, copycat iPods. ‘Nuff said.

    Eat crow iPod lemmings! Not so smug now, are you? It’s a Zune world now I am feeling pretty good about being part of the social. Maybe I’ll squirt you a picture of me enjoying the FM radio on my Zune—oh wait, you can’t squirt. Suckers. How does it feel being part of the antisocial?

    Microsoft proves once again that quality, good design and an excellent interface trumps rushing a clearly unfinished product to market with crappy software and features few people are interested in. Better luck next time Apple, and try not to copy Microsoft when you do try next time. Your historic lack of inspiration and innovation is laughable.

    Welcome to the Social.

  2. Man, get out of crack already!

    Nov 28, 2006 14:46:00 (ET)

    NEW YORK (Dow Jones)–Microsoft Corp. (MSFT) is “very happy” with the consumer response and sales to its new Zune digital media device.

    “All signs indicate that we are on track to meet our internal business projections, and we’re confident that Zune will only continue to gain traction and momentum through the holiday season and beyond,” Jason Reindorp, director of Zune at Microsoft, said in an email.

    Some early signs have indicated that the Zune device has yet to break through to the top of many shoppers’ list.

    On Amazon.com Inc.’s (AMZN) Cyber Monday top seller’s list, the highest ranking Zune was the black version at No. 76. Meanwhile the market-leading iPod from Apple Computer Inc. (AAPL) placed six of the devices in the top 10 list.

    On Tuesday’s list, the 30-gigabyte iPod comparable to the Zune was the No. 1 seller. Meanwhile, the highest-ranking Zune was the black version, listed at 92.

    – Carmen Fleetwood, Dow Jones Newswires; 201-938-5216

    (END) Dow Jones Newswires

    November 28, 2006 13:40 ET (18:40 GMT)

  3. what a joke !

    One month after launch and they have to respond to inquiries about poor sales (terrible Amazon stats, no response to Best Buy or Kmart kiosks, etc).

    I’m sure they were expecting more of a “buzz” with xbox like sales and reports of product shortages.

    Zune the HOT Christmas gift…….not.

    but it’s Crackalakin ???

    (( oh, i forgot …. this is only version 1.0 and Microsoft allways gets it right by 3.0 ))

    LOL

  4. “,,,sales of its Zune music player are in line with the company’s expectations”

    But

    “Microsoft has refused to disclose sales or projections”

    What is the name of that sone…?

    There is music in the air
    But I smell BS everywhere…
    So gimme the night.

  5. Nice to see that those who don’t want/like ipods are buying Creative and Sandisk players. And really really entertaining to see MS spend 100s of millions trying to act cool.

    Choice and competiton are good things, but the only criticism of the ipod that Zune seems to address is that it doesn’t scratch as easily. But even on that front, I notice that the 1st generation (and very scratchable) nanos are still doing well on amazon, so perhaps not such a big deal.

    “Just like an ipod except not as good… and five years late.” Seriously.

  6. All signs indicate that we are on track to meet our internal business projections

    Quick, some of you MS lackey rush to Redmond and warn them that they are looking the charts upside-down!

    Or else, MS is definitely run by idiots. They finally reached their customers IQs.

  7. In other news, Gill Bates will be heading to Pyongyang for talks on global warming bearing small parcels of hard foods (rejected by American consumers) for the starving children of North Korea, purely as a christian, humanitarian gesture, and to show the Kims that Republicans are not all hard-assed. The visit comes on the heels of Bush’s refusal to send Rice over for talks.

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