Zune Thoughts - Daily News, Views, Rants and Raves

Be sure to register in our forums! Share your opinions, help others, and enter our contests.


Laptop Thoughts

Loading feed...

Windows Phone Thoughts

Loading feed...

Digital Home Thoughts

Loading feed...





All posts tagged "loss"


Thursday, February 1, 2007

Zune Hits Closeout Shelves Already?

Posted by Damion Chaplin in "Zune Talk" @ 08:00 AM

http://crunchgear.com/2007/01/29/zune-goes-discount-causes-289-million-loss-for-microsoft/

"...Over the weekend we stopped by our local overstock and discount store in Seattle and were shocked—shocked!—to find a stack of nearly a dozen brand-new, unopened Zunes selling at $168. That’s about 25% off the going rate of $229 we’ve been seeing around ze Web, making it a good deal for someone looking for a Zune. The question is, however: Is there actually anyone looking for a Zune? Or did everyone who wanted one get one? Or are these simply a few units that fell through the cracks into a ghetto scratch-and-ding store? The numbers above mean these could all be possibilities."



With Microsoft reporting a $289 million loss, it doesn't make me happy to see Zunes selling for $168 (especially since I paid full retail for mine). I'd say this is the exception to the rule though - don't expect to find these at your local dollar store. We know they're not flying out of inventory, but I think it's too early to see them on the promo shelf.

Tags: loss, discount

Thursday, October 12, 2006

Ballmer: The Zune Isn't Losing Money

Posted by Darius Wey in "Zune Talk" @ 08:51 AM

http://www.businessweek.com/technology/content/oct2006/tc20061011_940241.htm

"...our ability to embrace and benefit from or compete with new business models - and I would say ad-funded and open source, more than this hardware thing - is more the way to categorize the key competitive dynamic for us. [Does Zune fit into the hardware piece of this?] Sure it does. Because the value of Zune, if we're successful, is all in the software. It's in community [the ability to share music and pictures with other Zune users]. I want to squirt you a picture of my kids. You want to squirt me back a video of your vacation. That's a software experience. The truth is, though, if it makes money, it will be built into the gross margin on the hardware. We'll figure out how to make money on the community perhaps later though advertising or other means."

Steve Ballmer took time out recently to talk to BusinessWeek about the Zune, Xbox, and Windows Vista - where they're at now, and where they're heading. One of the major points to come out of the interview was the claim that the Zune, unlike the Xbox 360, would not be losing money through the sale of hardware alone. That's good news for Microsoft's accountants, but comes across as an awful lot less risk-taking by the company, though that's not necessarily a bad thing either. There's a time and place for gambling, and you certainly have to pick the right moment before taking the plunge and relying on the sale of accessories and media to cover any monetary losses in the sale of hardware - especially at this current stage, when the Zune brand is a mere blip on the radar, and demand is well short of that of the iPod.


Reviews & Articles

Loading feed...

News

Loading feed...

Reviews & Articles

Loading feed...

News

Loading feed...

Reviews & Articles

Loading feed...

News

Loading feed...

Reviews & Articles

Loading feed...

News

Loading feed...

Reviews & Articles

Loading feed...

News

Loading feed...

Sponsored links