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  Zune #2 In Sales Behind iPod
Time: 11:45 EST/16:45 GMT | News Source: *Linked Within Post* | Posted By: Brian Kvalheim

Despite the fact that the Zune was only #18 on Amazon's sales chart (it's #17 now)—behind 12 varieties of iPods—Microsoft's doing quite well this holiday season. Statistics released by NPD Group says that while the iPod is still number one, the Zune's leapfrogged everyone else and claimed 9% of sales and 13% of total dollar share. Impressive, until you compare it to the iPod's 63% of sales and 72.5% of dollar share.

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#1 By 1401 (69.27.196.125) at 11/30/2006 12:11:28 PM
The operative word here being BEHIND

#2 By 37 (67.37.29.142) at 11/30/2006 12:21:45 PM
But AHEAD of hundreds of other MP3 players. Not bad being out only 2 weeks :-)

#3 By 3653 (68.52.143.149) at 11/30/2006 12:27:14 PM
did anyone predict it would be AHEAD after 2 weeks? you haters are hillarious.

its gonna be absolute fun to watch this battle over the next couple of years.

#4 By 3 (62.253.128.15) at 11/30/2006 12:28:32 PM
This is what was expected, until it cuts into the share of the ipod there isn't anything that wasn't expected here and no surprise it has overtaken other poorer mp3 players.

#5 By 3 (62.253.128.15) at 11/30/2006 12:29:17 PM
#3 I agree completly, well nearly. It'll be interesting to watch it start properly in a years time when Microsoft release their own hardware instead of the toshiba one.

#6 By 1401 (69.27.196.125) at 11/30/2006 12:32:35 PM
Hey - I'm not a hater. I love behind...

#7 By 37 (67.37.29.142) at 11/30/2006 12:34:32 PM
I don't know anyone who expected them to be number 2 in just two weeks. This is excellent.

#8 By 3 (62.253.128.15) at 11/30/2006 12:37:31 PM
#7 - well I did, other MP3 players apart from the ipod sell VERY poorly and the mass marketing and the mass mail out of PR kits to people doesn't surprise me to see it 2nd, its when it cuts into the ipod's massive lead that people will take some notice though.

#9 By 23275 (68.17.42.38) at 11/30/2006 1:44:18 PM
Well, Golly!

No one should be surprised and no one should be looking for the Zune to exceed the iPod, yet - and yes, every balanced pundit who actually looked at the Zune objectively, is now saying the same thing... "DUH!"

Two things... all objectives for Zune are being met, pretty much as expected - although for the Zune it is actually happening a lot quicker than even the most optimistic marketing and sales folks would have hoped for. To an objective person, all anticipated that iPod would remain the clear leader in the short, and intermediate term. All expected Zune to [within a year], emerge as a "Strong number 2" and no more. All expected all other players to be hanging on for market share after a year of Zune's initial release.

Seeing that emerge, or trend this way so early is good news for the Zune in one sense, and perhaps bad in another - greater early numbers with new software could actually sour all but hard core technophiles, or... issues are not as frequent as some would have us believe... personally, if one downloaded the Zune SW vice using the CDROM, they'd have had a near perfect experience during set up - but that is not the point of my post.

What is the point is that a) Apple is being hurt by the Zune and badly and they better step on the gas with their own wi-fi, larger screen video iPod and they better do it before MS ships TV, Video and much else via the Zune Market Place. - they won't make it by the way...
and b) The Zune never had to do all that well to actually hurt Apple - even one lost customer is "hurt" for them. The real loss for them is with the catalogs...

Finally, Apple is surprisingly soft when it comes to deals with the catalog owners. Demands for a piece of each iPod will increase - this will sting Apple, too - and an anti-iPod sentiment that is real and sincere does exist within the owners' camps. They are tired of the smug attitude - very tired and even if Apple does front a wi-fi enabled device, they have neither the software, or relationships to include the rewards based incentives for sharing songs that Microsoft's Zune has - which "gives back" to the catalog owners "something" for the loss of album sales that are real. Not just money in small amounts... but real loyalty and rewards marketing and all associated laws - hence the use of points. [I am still shocked at how few tech pundits get this!!!! - hint... tech co's, send your engineers to business school at some point].

Again, Microsoft has already won this - it is a matter of time - now it seems it is a matter of less time than Apple had once thought.

Cont...

#10 By 23275 (68.17.42.38) at 11/30/2006 1:44:47 PM
You all should read an article published some years ago about Steve Jobs - I have read the pages thin.... it centered on the problem [in business] with "designing for designs sake alone" - fashion designers deal with this all the time - a sense of that changes all the time and while hardware designs move more slowly, they are all exposed to changing senses of what is, "fashionable" which is really hurt when "everyone" has the same thing. So... what it means to me is simple... as Apple's iPod succeeded, it would begin to actually fail - being sold because it was unique becomes a diluted factor as more and more people have it. People then begin to shop for different things and for more evolved reasons. Jobs' design for design sake approach has once again, bitten him and Apple - real numbers show actual decreases for every month he has led Apple, but one... 2 qtr, 2006. Against a rapidly growing market over all... Apple continues to lose steadily. It is just too late. Look for an Apple Sun merger in coming years.... and better and better Zunes, too. The iPod will still lead for a long time, but the days of near total dominance are already well over.... and don't think for a second that the likes of Verizon will not learn from the Zune! They will reach to eat into Apple just as fiercely as Microsoft - but Microsoft will be patient, very patient and as carrier agnostic telephony moves forward, Microsoft will continue to emerge as publishing powerhouse with a very diverse ecosystem of well integrated tools and platform components. Once again, Mr. Gates is likely bored out of his mind and tired of being "right" despite occasionally getting the timing wrong. "Persistent Consistency" - when will they ever learn that it trumps all.

Sorry for the book.

#11 By 37 (67.37.29.142) at 11/30/2006 2:00:36 PM
NPD doesn't count PR kits however.

#12 By 3653 (68.52.143.149) at 11/30/2006 3:34:26 PM
can someone explain how to tell an Activewin poster? Are Byron_Hinson[AW] and AWBrian both admins/owners/employees/whatever of Activewin? I'm almost certain I've seen some "AW" added to users names that are only there to confuse, right?

#13 By 11888 (69.156.78.33) at 11/30/2006 7:43:58 PM
How did Zune manage to already drop to position 59 on the Amazon Top 100 in Electronics? Anyone know where it peaked?

#14 By 20505 (216.102.144.11) at 11/30/2006 8:56:41 PM
Since everyone is asking questions...

Why is Ann Taylor purveyor of womens clothing advertising on this site?

#15 By 2 (24.239.197.85) at 11/30/2006 9:10:13 PM
Hi, Click on their profile name and it should say a user level other than "user." In the forums, there is a staff icon next to their name. Brian and Byron are both staff....

#16 By 1401 (65.255.137.20) at 11/30/2006 9:45:14 PM
#14 - Activewin did a study and found that 9 out of 10 geeks that read the site wear womens undergarments...

#17 By 32132 (64.180.219.241) at 11/30/2006 10:40:20 PM
#13 Its #19, #50 and #92 on the new releases list:

http://www.amazon.com/gp/new-releases/electronics/ref=pd_ts_mte/103-9837950-6174249

#18 By 2960 (68.100.7.161) at 12/1/2006 1:52:22 AM
Don't know if it will happen or not, but several industry expert 'opinions' I've read expect the Zune numbers to tank in a major way fairly soon.

TL

#19 By 3653 (68.52.143.149) at 12/1/2006 2:39:57 AM
techlarry, you mean like... oh i dont know... after Christmas?

I'm gonna make a bold prediction... that in January there will be a huge drop in sales of hdtv's, xbox360s, forks, whole hams, canned yams, zunes, and ipods.

----

thanks Bob for the clarification on staff members.

#20 By 37 (68.190.114.234) at 12/1/2006 5:59:32 AM
Wow Larry...no surprise there. I wouldn't expect anything less coming from you. <sigh>

#21 By 13030 (198.22.121.110) at 12/1/2006 11:40:39 AM
#10: as Apple's iPod succeeded, it would begin to actually fail - being sold because it was unique becomes a diluted factor as more and more people have it.

It's called commoditization.

People then begin to shop for different things and for more evolved reasons.

We don't want to look like the penguin next to us.

#19: I'm gonna make a bold prediction... that in January there will be a huge drop in sales of hdtv's, xbox360s, forks, whole hams, canned yams, zunes, and ipods.

And you'd be wrong on some of those. January is an awesome month for consumer electronics retailers due to gift card redemptions and after Christmas sales.

Personally, I can't wait for after Christmas fruit cake specials. Seriously! I love that stuff!

#22 By 23275 (68.17.42.38) at 12/1/2006 12:34:32 PM
#21, Precisely! It's called Competitive Parity and it impacts nearly all things we buy.

BTW, keep posting [a lot], Personally, I can't wait for after Christmas fruit cake specials. Seriously! I love that stuff! your posts are often hilarious.... I nearly wet myself over that one. Thanks for the laugh.

#23 By 3653 (68.52.143.149) at 12/1/2006 2:43:44 PM
Yeah, i've been known to take out a claxton or two.

Not to kill your january fruitcake orgy, but have you guys looked at the nutrition tag on those things. Jeez.

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