“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
Come December 26th, many a Zunectomy will be performed.
“Ah, I got this turd for Christmas, and want to return it.”
“Do you have the original packaging?”
“I have a fresh roll here somewhere.”
And so forth.
Yeah….
And what ever happened to “Origami” or whatever that huge new thing from Microsoft was called ?
Boy they built that up huge … and let die pretty quickly.
Oh I forgot, Microsoft has billions of dollars and huge market share and they win anywhere they want.
Why isn’t it obvious that Microsoft is this generation’s IBM ?
So ripe for implosion !
If I was a Microsoft Shareholder….
I think I would want presence at the next AGM to ask…. Exactly how many Zunes did you intend to sell, given all the investment made in product design ($10) and product marketing ($10,000,000).
The company executive are put in place by shareholders to deliver shareholder value by investing in and marketing products effectively.
So Ballmer…. Whats your plan?
Magic word for my last post: “Leaders” (How ironic).
Magic word for this post: “Who”
How thoughtful it was not to name him Rudolph.
Has to make you wonder though if this design was just design to get something out there until the proper device is designed and developed.
Despite how bad the whole zune thing is, a lot of people are talking about it – there is no such thing as bad publicity.
If a lone Zune squirted in the woods but there were no other Zunes to get squirted on does the squirt really exist?
I imagine that M$ only expected to sell 100K units in the first quarter. The question is whether they can increase their sales to 1M in successive quarters.
Funnily enough, I believe Apple sold 150K of the original iPods in their first quarter of release. However the market was very new then and it was only available to mac users.
“met sales expectations”
A couple of dumb asses actually forked over money to own a Zune (although after spending a week trying to get the software to work, they returned them).
All the rest were given away for review and because it was soooo embarassing to have a giant pile of stock with no demand.
MW: squirt
Actually, this is Microsoft as we all know them. They roll out a copycat product that sucks and then figure out ways to strongarm people into using it. Over the years the product starts to suck a little less until its complexity catches up with it and it really sucks. Guys, all M$ knows how to market is Windows, and that’s what they’re attempting to replicate here. It’s so obvious and so sad. It won’t work this time because the Microsoft name isn’t the magic it once was (if it ever was); people aren’t going to hang around in the endlessly vain hope that they’ll get it right “this time”.
“If a lone Zune squirted in the woods but there were no other Zunes to get squirted on does the squirt really exist?”
Well, I definitely think it means that there really IS NO SOCIAL!!
when you intentionally put out shit. You expect to move a miniscule number of units and have the sales force ignore it.
I suspect the MS knew this first iteration is a piece of crap, but realized that no matter when they first put one out, they would have awful sales. Why not just put out whatever crappy device with crappy marketplace with crappy install issues with crappy media software? Well, the last two are standard MS practice in whatever version. This way, when they actually put out a useable service with an average device, it will seem like a huge improvement. They took the chance that this will outweigh the negative press they are getting now. Let the users take the bruises from mulitple install attempts to help debug the thing. As goofy as the hardware is, the user interface and marketplace are the real killers here in most reviews. That is what they need to improve to compete with the Zen, etc.
They are in this for the long haul. How long has xbox (which was much much better in its device category than Zune) been out?
On a related note, Microsoft expects Steve Ballmer to sweat profusely and throw chairs.
By the way, it’s been a while since I’ve seen a picture with Rob Glaser holding two Crispy Cremes. What’s up with that, MDN?
Hmmmm, As of 11-29-06 11:30 am
The Black Zune is listed as — 63rd on the popularity list at Amazon.com. I guess its slipping fast. Apples iPod battery brick is more popular.
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We should monitor this, but I am surprised. I did not expect Zune to be this high. LOL
N.
OK, oppps, wrote reply then read above messages. 🙁
But Amazon says it updates hourly so numbers may bounce up and down. However, there were tons of iPods — all above the Zune.
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N.
Give them time guys.
You can’t expect SquirtsForSure to become the new wireless standard overnight.
Everyone keeps looking at Amazon for indications, but I thought I’d throw in another comparison. Here is a link to the Zune vs. iPod at Google Trends:
http://google.com/trends?q=zune,+ipod
jallard@microsoft.com grovelled to Ballmer and brought down all the sales targets after the launch to journalist..who were asked to bring thier iPods and then offered a Zune in exchange. jallard@microsoft.com must have been gutted as, with cameras rolling they expected a rush. NOT ONE journalist would swap any iPod for a Zune!
Microsoft has no taste, and low low sales targets.
Wow… the black Zune has shot back to #65 on Amazon. What going on today? Did someone just let a bunch of mental patients use the internet ?
The MDN’s Take comment is dead on.
M$ is evil.
From it’s inception it’s frequently produced a product or took an action that has a hidden agenda of no good hidden behind an innocent surface.
RE: Zune Tang
“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.”
You are such a bloody loser, and you have to be joking about your statements. Only a fucking moron would say the shit you are squirting out. Get it? Squirt? LOL
I bought my first iPod nano (red) recently – also got one for my wife. The click-wheel interface is the best I have seen and blows away anything the so-called competition could ever come up with.
My wife and I were at Sears on Friday and saw the shit-brown Zune they have on display. We walked away laughing our asses off. What a turd for MS ‘tards! Microsoft sure created a real winner. ROTFLMAO!
RE: James
Don’t you recognize sarcasm when you see it? Zune Tang rocks! He is often right on the edge, but that what makes him so good. Read some of his previous posts. They are hilarious. Must be Ampar in disguise.
Zune buyers deserve exactly what they get, even if the damned thing blows up in their faces. What could people be thinking to actually pay hard-earned money for such a loser product?
James gets it.
Nice post and I’m looking forward to reading more from you.
Sorry you bought an iPod.
Welcome to the Social.
Wow, great performance:
It is a well known phenomenon that shit rolls downhill.