updated 01:55 pm EST, Tue December 5, 2006
Zune drops to fifth place
After a strong initial showing Microsoft's share of the digital audio player market has decreased, putting the Redmond-based company in fifth place. Research firm NPD Group reports that in the week ending November 25th, the Zune consumed 2.1 percent of sales, versus 39.4 percent for Apple's iPod and 39.3 percent for SanDisk products. At third and fourth place were players by Creative and Memorex; Microsoft's figures were also tied by a player from the Walt Disney Company, according to Electronista. NPD analyst Stephen Baker noted, however, that the week of Thanksgiving is traditionally difficult for new products, and that Microsoft's unit volume was unusually consistent between the first and second weeks. Microsoft admitted after the Zune launch in mid-November that its strategy is a long-term entry into the portable audio player market, and that it expects to see very little -- if any -- progress during the first year as a contender.