ipod
11/29/2006, 3:35pm, EST
Wednesday, November 29th
Zune ranks No. 2 behind iPod
Despite recent negative press about Microsoft's new media player, it is now ranked No. 2 behind rival Apple's iPod, according to statistics released by the NPD Group today. The San Francisco Chronicle reports that the Zune has "supplanted SanDisk's Sansa for the distant No. 2 spot, claiming nine percent of unit sales and 13 percent of the total dollar share during its first week on store shelves. (Note: The dollar share is higher because the Zune sells for $250 each, compared with other MP3 players, which sell for less). The iPod remains No. 1 with 63 percent of unit sales and 72.5 percent of the dollar share." Earlier this week, another blog post said that the Zune reinforced Microsoft's dorky image, saying that the company made mistakes in marketing, feature planning, and pricing, while another analyst noted that 75 percent of retail clerks recommend the iPod and only 8 percent recommend the Zune (and others have never heard of it).
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I love my iPods as much as the next guy, but Microsoft have the money to throw at the Zune until it starts to cause Apple a problem. Look what they did with the Xbox and then the 360, Sony were runaway leaders in the console market but now Microsoft have the lead in the 'next gen' market
And they've fscked Apple's business model with the Universal payment deal. You can bet Universal will try and squeeze Apple for the same deal on the iPod when the contracts are up for re-nogotiation in 2007.