NPD: Microsoft Zune hits 9% in US market share in first week, takes #2 spot from SanDisk [UPDATED]

“Microsoft Corp.’s Zune took the No. 2 position in the market for digital music players during its first week on sale, passing SanDisk Corp., a market researcher said,” Jennifer Sondag reports for Bloomberg.

Sondag reports, “Zune had a 9 percent share of the U.S. market in the week ended Nov. 18, Port Washington, New York-based NPD Group said in an e-mailed statement today. Apple Computer Inc. had a 63 percent share, when measured by units sold.”

Full article here.

“Another research agency, Current Analysis, reported a somewhat similar sales reading during the same week. For the same week ending November 18, 2006, the Zune took 7 percent of the MP3 player market, falling behind both Apple and Sandisk,” David Ellis reports for CNNMoney

“While the two reports look strictly at sales at major U.S. electronics retailers, online sales of the Zune appear not to be as favorable,” Ellis reports. “As of midday Wednesday, Zune ranked as the 18th most popular MP3 players sold at (down $0.81 to $40.11, Charts), behind most models of the iPod.”

Full article here.

“NPD said the weekly sales numbers come from a subset of the retailers who participate in its monthly report, but that they still reflect a good snapshot of the market. One interesting point from the NPD news release: Zune sales were still less than the combined sales of PlaysForSure devices,” Todd Bishop reports for The Seattle Post-Intelligencer.

Full article here.

[UPDATE: 2:22pm EST: Added quotes from and link to CNNMoney article. 2:27pm EST: Added quotes from and link to Seattle PI article]
First week sales – ahead of the reviews, naturally – seem good, huh? Just like a highly-hyped movie that’s made intentionally unavailable to critics for prerelease review screenings, the first week box office is usually good. Well, folks, now the reviews are in. So, what was Zune’s market share for its second week on sale? What will they be for the third week? That’s the real story, besides how many units were returned, of course. Logic suggests that week one was Zune’s high point; it’s all downhill from here. We’d also like to know NPD’s exact methodology for arriving at the numbers quoted by Bloomberg. 9% of which market exactly? Hard drive-based DMPs, the whole DMP market, including flash-based, what? Need more input, Stephanie.

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  1. 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 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)

  2. How many employees (and relatives and friends of said employees) does Microsoft have?

    Sounds like the astroturfers have been busy padding the numbers.

    They’ve certainly been busy attacking and trying to counter all the negative Zune reviews.

  3. One week? So. What a crappy measure of sales.

    Gee, between 3 and 4 pm on Tuesday at the Microsoft cafeteria, Zune sales were number one. Woo hoo! ” width=”19″ height=”19″ alt=”rolleyes” style=”border:0;” />

    MDN: meaning, as in This story has very little.

  4. What have I been saying? At this time next year it will be Microsoft 63 percent, Apple 9 percent share. And those numbers will be genuine numbers—not the inflated, manipulated stuff Apple throws around because they can’t compete on quality, design or ease-of-use like Microsoft can. It’s looking more and more like a Zune world out there with iPod relegated to third place after Sandisk and Zune.

    Apple, it’s not too late to make consumer-friendly alliances with the labels like Microsoft + Universal, or incorporate a points system into the iTunes store.

    Upward and onward Microsoft! Great job!

    Welcome to the Social.

  5. Here’s a little back of the envelop computation of relative market share. It’s admittedly crude and only uses Amazon data, but the results might shed some light on what’s happening.

    First, go to and then find the best sellers in the MP3 player category.

    Then, notice that 12 iPod models rank above the first Zune model, which is in 17th place overall.

    That would indicate, roughly of course, that iPods outsell Zunes 12 to 1.

    Moving down the list you’ll see some other Zune models, but then again there are many more iPod models too.

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