Analysts: Microsoft’s latest Zunes show no innovation, won’t threaten Apple at all

“Microsoft Corp., chasing the speeding iPod train, will [ship] a lineup of its Zune hand-held music and video players next month,” Joseph Menn reports for The Los Angeles Times Staff.

“Analysts said the new Zunes, which Microsoft Chairman Bill Gates unveiled to reporters in Redmond, Wash., on Tuesday, might help the company hold on to its sliver of the market and perhaps gain some ground against fledgling entrants. But Microsoft wasn’t given much chance of taking customers from Apple Inc.,” Menn reports.

“‘They’re not going to gain against Apple because there is nothing really innovative about what they’re doing,’ said Van Baker, a vice president at Gartner Group,” Menn reports.

Menn reports, “Microsoft spokesman Chris Stephenson said the company was aiming for more than 10% of the part of the market where the smaller Zunes would compete, which is new territory for Microsoft. Overall, he said, ‘our goal is to be the main No. 2.'”

Menn reports, “‘It’s fine to say you want to be a credible alternative to Apple,’ Jupiter Research Vice President Michael Gartenberg said. ‘But the market isn’t looking for credible alternatives. People are looking for iPods.'”

Full article, which unfortunately confuses the iPod touch with the iPhone, here.

Dina Bass reports for Bloomberg, “Microsoft was the fourth-biggest seller of portable digital players in the first half with 3 percent of the market, compared with Apple’s 71 percent, according to NPD Group Inc. in Port Washington, New York. Microsoft, the world’s largest software maker, sold 1.2 million Zunes between their November release and June, less than 3 percent of the iPod’s sales in the same time.”

“As for this Christmas, the new versions won’t help Microsoft gain significant ground on Apple, said Van Baker, an analyst with Gartner Inc. in San Jose, California. The current second-biggest competitor, SanDisk Corp., isn’t standing still either, he said… ‘Apple is a moving target,’ Baker said. ‘Every time someone says we can make a product that’s competitive with Apple, guess what, that product isn’t there anymore.'”

Full article here.


  1. Did you hear the wireless syncing on the Zune still requires it to be connected to and AC power cord.
    So, wireless syncing still requires a cord -LOL

    Even with some new ideas they can’t implement it properly.

  2. At least the new Zunes don’t come in turd brown like the old ones.

    But the part that disgusts me is that an M$ spokesperson said that they want to steal market share from their own PlaysForSure partners… basically, they’re eating their own children. Already, #2 SanDisk is pushing Rhapsody (which uses a Real DRM) over PlaysForSure, and I’ll be interested to see what #3 Creative Labs does in response to the M$ announcement.

    And, of course, during all this instability in Redmond, Apple will remain king.

    MDN MW: “hot”, as in “iPods will remain the hot gift this Christmas”

  3. Judging from the the latest Zune offerings–it’s seems that MS really isn’t ‘in it to win it’. Seriously, it looks like they didn’t even try to make an attractive product. Looks like a tax write-off to me.

  4. “Analysts: Microsoft’s latest Zunes show no innovation, won’t threaten Apple at all.”

    Why Hell no!

    Like I said yesterday, “More Zune junk doomed to fail.”

    Nobody buys that crap but fools or losers.

  5. The Zune would have died…

    Except the media and MDN keep it alive with free advertising.

    “Oh poor Zune, it’s the underdog against the evil Apple, lets buy one and we won’t get robbed for our iPods.”

    Microsoft: Your penetration is our passion.

  6. Did anyone see the article this morning with Ballmer quoting a 10% market share? What a joker!

    Here’s Ballmer’s quote:

    “We’re going up against a company that does very good work – I gotta give Apple its due,” he said. “But we went into that market and got a market share of some 10%.”

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