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 "sales"

Friday, January 23, 2009

Zune Revenue Plummets

Posted by David Tucker in "Zune News" @ 03:40 PM


“Microsoft's newly-announced layoffs and declining profits aren't the only bad news in Redmond -- according to the company's quarterly statements, Zune platform revenue decreased $100 million, or 54 percent compared to the same quarter last year, due to falling device sales. Mega-ouch. Not all is doom and gloom for the Entertainment and Devices Division, which continues to be profitable with a $151m haul: Xbox 360 and PC platform revenue increased six percent to $135 million. Meanwhile, Apple saw a three percent increase in iPod sales over the same period, so we're anxious to see what Microsoft has planned for reviving the social.” (via Engadget)

Can anyone say ‘ouch’? Year over year decline in revenue of over half is terrible news. Now I realize we’re the midst of a recession but that still doesn’t soften a blow like that to a division that needs to show some progress. I’m fairly confident the Zune won’t be going anywhere anytime soon at least. I believe its too important to Microsoft’s entertainment strategy in the long term. It does need to be relevant, however. It may be time that Microsoft looks at its Zune strategy and decide if it’s time to change anything.

I think that if Microsoft could get some very tight integration with Zune and its Windows Mobile 7 platform they could have a real winner. But it has to be great. Windows Mobile is in so many hands right now that tying the Zune to that platform would be a powerful selling point for both WinMo and Zune. I’ve recently moved to Android but if WinMo 7 were to be Zune-capable then they could very well get me back.

Thursday, May 24, 2007

Pink Zune is #2

Posted by Damion Chaplin in "Zune Hardware" @ 03:00 PM


"This may indicate strong demand for the color pink, or a lack of demand for the existing Zune colors, but whatever the cause, the "limited edition" pink Zune has become the second-best seller in the product lineup, Microsoft said today in its monthly update on its music device. The pink version, released earlier this month, is outselling white and brown, according to the company. That makes it second only to black."

No, I've never been a fan of pink technology, but I do find this news thoroughly unsurprising. After black, I'd say pink is probably the second most popular color of anything. In my opinion, the only reason why MS even released a white Zune (and subsequently why anyone ever bought one) is because the iPod is white. And the only reason why anyone ever bought a white iPod was because for a while they were only available in that color. Microsoft should have released a pink Zune for the very get-go. Now if they would just consider a stainless-steel Zune... ;-)

Tags: sales, pink, #2, second

Wednesday, May 16, 2007

Zunerama Analyzes Amazon Sales Ranks

Posted by David Tucker in "Zune Talk" @ 11:24 AM


"NPD data does not include Amazon sales information. But Amazon's data seems to validate that Zune has a secure hold on 2nd place in the market, effectively knocking down hard drive-based players from Creative, Cowon, Toshiba, Archos, and iRiver - as well as older 5G and 4G models of iPods."

I have to really applaud Harvey Chute's research into all this data. There has been a lot of dispute about whether or not the NPD data is even worth anything since some vendors aren't included. The only one that really matters is the Apple stores. That is the only store that won't match up the percentages given in the NPD. I don't know how much of Apple's sales come from their stores so any market share we have is going to be skewed. But given that it will always be skewed without that data from Apple, at least we have a common point of reference.

Going back to the article on Zunerama, Harvey has tracked sales for the past month of high end DAPs. The Zune has been the second best seller after the iPod. Interestingly, the white player has overtaken the brown. I remember that at one point the brown was far above the white. Harvey feels that the Zune is mostly just eating into Apple's competitors rather than Apple itself but that assertion is harder to make since the sales rank doesn't give us any indication of that.

Overall I'd say that the news for the Zune's first generation is rather rosy!

Tags: zune, ipod, sales

Monday, March 5, 2007

Zune Holds 9.9% of Hard Drive-Based Market for January

Posted by Jason Dunn in "Zune Talk" @ 07:00 PM


"NPD numbers are out again, and in the harddrive MP3 player category, Zune has the number two spot, with 9.9% of the market in January. Also, the Zune Marketplace subscriptions user base grew by 60%, with individual ZMP downloads increasing by 65%. It's also worth noting that Zune is sold in more retail outlets than NPD currently reports on: for example, Amazon (which actually only accounts for a very small percentage of Zune sales), Wal-mart, the club stores - Costco and Sam's aren’t reported by NPD, and some others. NPD also doesn't report on the Apple Stores, where Zune isn't sold, (obviously ;). So the actual market share might be different, but to report on the category, we’ll stick with NPD."

It's interesting to see that the Zune is holding onto the #2 spot for hard drive-based players, denying that nay-sayers the ability to say that the numbers from the first month were a fluke. 9.9% is a good number for a brand new product, but it also underscores the fact that the Zune needs to get a flash version out into the market because the real big numbers come with the sale of the Nano, Shuffle, all of Sandisk's products, and others. I wonder, how well can the Zune team execute in parallel? With some markets, such as Canada and the UK, expected to get the Zune later this year, is the Zune team focused on that or will we see the US market get its first flash-based player before other places in the world get their first Zune at all?

Tuesday, December 26, 2006

Zune's 2% (Not 9%) Market Share

Posted by Darius Wey in "Zune Talk" @ 11:00 AM


"When all the retail sources were polled and the data finely analyzed, Microsoft's fledgeling digital media player garnered a 9 percent unit share of the hard disk drive (HDD) segment -- or just shy of 2 percent of the overall U.S. market -- according to November data from NPD Group. That's a significant correction from an initial sales surge and a more selective data set that awarded Zune a staggering 9 percent share during its first week on the market. In speaking to AppleInsider, NPD analyst Steve Baker said the most recent share data was compiled from a more comprehensive list of retail sources that factored in iPod sales at Apple's own stores, and is therefore more representative of the Microsoft player's overall market share. Figures released by the firm immediately following Zune's launch in mid-November were culled from aggregate sales data coming only from the nation's top electronics dealers, which did not include Apple retail stores."

So it appears that Zune didn't quite do as well as first thought. The initial report of 9% of the market share was quickly corrected to 2%, after factoring in iPod sales at Apple's own stores and resellers. But when you're looking at a first-generation device entering a market that's devoured by the iPod, coupled with the occasional odd bit of marketing, is 2% really that surprising?

Monday, December 11, 2006

Zune Goal: 1 Million by June '07

Posted by Aaron Roma in "Zune Talk" @ 08:00 AM


"Microsoft expects to sell more than one million Zune music players by the end of June 2007."

Apparently Microsoft's initial goal for the Zune is to sell at least one million units by June next year. What do you think about this number? Is one million units too small a goal at this stage in the game, or is the Zune team smart by not setting too high a mark? Obviously this isn't even close to iPod's numbers, but it doesn't need to be. Will one million units sold by June be a success for Zune?

Thursday, December 7, 2006

Zune Drops to Fifth, MS Says That's OK

Posted by Damion Chaplin in "Zune Talk" @ 09:00 PM


"Microsoft Corp.'s Zune device dropped to fifth place from second in the U.S. market for digital media players in its second week in stores, market researcher NPD Group Inc. said. Zune captured 2.1 percent of the market in the week ended Nov. 25, said Stephen Baker, an analyst at Port Washington, New York-based NPD, in an interview today. Baker said Apple Computer Inc.'s iPod remained the leader, with 39.4 percent that week, based on units sold. Zune's market share declined as SanDisk Corp. boosted sales with a 50 percent price cut on its media players, taking a 39.3 percent share and knocking Microsoft from the No. 2 spot it occupied in its first week in the market. Redmond, Washington- based Microsoft sold about the same number of units as the previous week, failing to keep pace with rising holiday sales."

OK, 2.1 percent doesn't sound that great, but remember Microsoft has a plan, as stated in a report released yesterday:

""While this is expected, our focus is less on week over week numbers, and more on the incremental sales that are leading to overall growth of the category," said a Microsoft spokeswoman in a statement. .. Microsoft has said it plans to invest hundreds of millions of dollars to develop and market the Zune, while acknowledging that the investment may take years to bear fruit."

Microsoft's in it for the long haul and they, more than anyone, have the resources to bide their time.

Wednesday, November 29, 2006

Universal Gets Greedy

Posted by Darius Wey in "Zune Talk" @ 07:00 PM


"Universal Music Group Chief Executive Doug Morris said on Tuesday he may try to fashion an iPod royalty fee with Apple Computer Inc. in the next round of negotiations in early 2007. Universal, the world's largest music company, owned by French media giant Vivendi, was the first major record label to strike an agreement with Microsoft Corp. to receive a fee for every Zune digital media player sold."

Universal's power drive doesn't end at Zune. The iPod could be its next target in a few months time, and quite frankly, I don't think it'll end there. What's next, Universal? Accessories?

Wednesday, November 15, 2006

Zune Out of the Gate With a Slow But Steady Start

Posted by Aaron Roma in "Zune Talk" @ 02:00 PM


"Their are no long lines in front of the electronic chains to tip us off on how well Microsoft's new Zune player is doing in the market these first few days, nor do Walmart or Target let on to their sales figures on any item they sell. With all of the hype big things are expected for this iPod contender and initial sales numbers can shed some light on its prospects."

It was the morning of November 14th. It was the moment we had been waiting for all year. All across the nation, people were camping outside their favorite electronics store, waiting in line to be among the first to own the newest piece of technology to hit the shelves. Fortunately for me, I was able to stroll past all of those enthusiasts in line for this weekend’s launch of the PS3 and walk straight to up the cashier to pick up my Zune. :) All kidding aside, the opening day sales for the Zune haven't exactly been record-breaking, but indications to point to fairly steady sales. MP3 Newswire takes a look quick look at the Zune's opening day performance. The Zune debuted at 8 (up to 7 last time I checked) on Amazon in electronics (on a list dominated by iPods), and I've seen the stock at my local retailers steadily declining. Hopefully as word of mouth spreads, and the holiday shopping season ramps up, things will pick up even more for the Zune.

Tags: sales

Sunday, November 12, 2006

Best Buy Sells Zune Early

Posted by Darius Wey in "Zune Talk" @ 02:40 AM


Oops, looks like a Best Buy salesman in Union City, CA screwed up today by letting a Zune out of the bag a little too early. The only problem is, the customer can't install the software. That's karma for you.

Friday, November 10, 2006

What Microsoft Thinks of the Universal Deal

Posted by Darius Wey in "Zune Talk" @ 04:50 AM


"Today we're announcing that we'll pay UMG a per device royalty for every Zune player sold – a first in the industry. Why? We're about supporting artists, and ensure they continue to prosper with the emergence of the digital music model. The distribution of digital music isn't that old, and the current method isn't really doing a lot to compensate artists fairly. We worked closely with Universal to create this revenue opportunity for artists, as the industry transitions to a time when it can fully take advantage of new opportunities that digital experiences offer, both for consumers and for artists and labels."

There were more than a few eyebrows raised yesterday when it was revealed that Universal would be getting a cut of Zune sales. Unfortunately, Microsoft and Universal couldn't talk specifics, but the former did raise a couple of points today that I thought were worth sharing. Firstly, a portion of the cut goes to Universal's artists. Now who the artists are and how much of that cut they get is still a question mark. We did say they couldn't talk specifics, right? ;-) Secondly, Microsoft is talking to other labels (indies and majors) about the opportunity to participate in a similar manner. Yes, we'll give you a minute to get your head around that one. It's a "power to the labels" approach that not everyone is going to want to embrace. The upside of all this is that there'll be more tracks pre-loaded on the Zune than first announced, and there'll be more tracks available for purchase in the Marketplace (yay to choice). The downside is that over time, the strong-arm tactics of the labels is only going to worsen (nay to money-grubbing). They'll make money off the songs. They'll make money off the hardware. Soon, it'll be your clothes, and your soul.

Reviews & Articles

Loading feed...


Loading feed...

Reviews & Articles

Loading feed...


Loading feed...

Reviews & Articles

Loading feed...


Loading feed...

Reviews & Articles

Loading feed...


Loading feed...

Reviews & Articles

Loading feed...


Loading feed...

Sponsored links