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Posted by Spy November 30, 2006 11:37 AM with 5 comment(s)
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SAN FRANCISCO (Reuters) - Microsoft Corp. may have a chance to take market share from the iPod as a Reuters survey showed 35 percent of those interested in its Zune device would be replacing an existing digital music player.

Microsoft, the world's No. 1 software company, two weeks ago began selling the Zune, which analysts have called its most serious effort yet to compete with Apple Computer Inc.'s (AAPL.O: Quote, Profile, Research) iPod, the best-selling player by far.

Apple has sold more than 70 million iPods since its introduction in October 2001, and the iPod now commands more than a 70 percent share of the U.S. market for MP3 players, as they are also known. Microsoft has itself acknowledged that it may take years for its Zune effort to take effect.

Zune was off to a quick start, grabbing 9 percent of the U.S. digital music player market in its first week of sales, taking the No. 2 spot from SanDisk Corp.'s (SNDK.O: Quote, Profile, Research) Sansa, market researcher NPD Group said on Wednesday. Apple remained the market leader with 63 percent unit share, NPD said.

According to the Reuters survey, which was conducted over the U.S. Thanksgiving holiday weekend, Apple remained the leader by a large margin, with about 70 percent of respondents answering unprompted that they would likely buy an iPod.

When given a list of MP3 players from which to choose, 80 percent of respondents chose the iPod. Some 7 percent of those given a list of players that also included Microsoft's player, picked Zune.

Among those expressing a preference for the Zune, some 35 percent were replacing an existing player while 18 percent of those who voiced an interest in the iPod were upgrading.

Some among the 35 percent were likely already customers of Microsoft's PlaysForSure initiative, which allows consumers to choose from a selection of devices and music stores which are mutually compatible, Gartner analyst Mike McGuire said.

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Comments

 

danilko1 said:

Problem is PlayForSure content is not compatible with the Zune.

What a suprise for that likely group of users.

November 30, 2006 5:09 PM
 

Andrewft65 said:

Problem is PlayForSure content is not compatible with the Zune. What a suprise for that likely group of users.

Ha,is that so!

RanMay you obviously are impressed with the device, go and buy one, and let us all know!

November 30, 2006 5:37 PM
 

bluvg said:

Some 7 percent of those given a list of players that also included Microsoft's player, picked Zune.

Obviously, Microsoft still has a long ways to go.  Hopefully, a much-improved v2 (and a flash model, please) and the significant ongoing improvements are in the works. 

Honestly, though, I think they need to focus less on the stand-alone player market, and concentrate on the hybrid phone/player devices.  They're chasing after Apple's leftover crumbs, while Apple is moving on to the next meal.  If they can largely keep the interface they have now (which is quite good... finally got to play with one) rather than putting the everything-to-everyone Windows Mobile OS on it--while introducing an enticing form factor--I think they'd have a good shot (assuming they sort out the Zune store issues as well). 

November 30, 2006 6:15 PM
 

Andrewft65 said:

Interesting comments on MiniMicrosoft blog. Even Microsofties think the device is awful. I liked the comment about how painful it is to get WMV working on it, the Microsoftie praising the DivX standard, and the ease of "open" devices!

Ha!

Still I suppose Microsoft need to find "new" markets, and shove their profits somewhere. Last thing they want to do is to start giving it back to us stockholders! ;-)
December 1, 2006 9:10 AM
 

GP007 said:

MS was never one to give out dividends often, and I think it's better they grow the business as a whole, which drives up stock prices for shareholders, insted of giving you a small $0.07 per share, or something like that.

The device is new and needs time, I for one thing they have way more things planned for it then what we see now, if this was all there was, they'd be pushing it with loads of marketing left and right, which they're not at this point.   I think they've got bigger plans for 2007.

December 1, 2006 10:48 AM

About Spy

Hello world, as they say. I'm in Melbourne Australia and work as a Systems Administrator. I go to work every day with a smile on my face as I just love my work. Our company works across 30+ sites around the state so I travel a bit. We use mostly MS products, IBM hardware and 100% Cisco networking...it's a sweet mix for sure. I've been around Bink's site since it's inception way back when it was just a group on the MS site...that was a while ago. Bink.nu is the leading source of Microsoft news on the web that's for sure and I love being a part of Steven's team. Anyway, hope you enjoy the site.
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