Microsoft tries new Zune ad push
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The software maker kicks off a new campaign for its digital music players with the message "You make it you."
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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.
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newsmaker There's still a lot Microsoft wants to do with Windows, and it has its work cut out with Zune,  CEO says.
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(InfoWorld) - Microsoft Corp. has predicted it will sell 1 million Zune devices in its first six months, a figure that would be more than Zune's chief rival iPod sold in its first 14 months but a relatively slow start for the much-hyped MP3 device. SinceÂ its retail debut on Nov. 15, customer interest in Zune has been lackluster, analysts report, and the company's projections for sales of the device are conservative. By contrast, Apple Computer Inc. will likely sell about 25 million iPods over the same period according to financial analysts, though the company only sold 600,000 iPods in the first 14 months of availability. Mike McGuire, a Gartner Inc. research vice president, said he was surprised Microsoft is expecting to sell so few Zunes in the first six months, given that the market for iPod and MP3 devices is thriving. On the other hand, "it's a decent objective," he said. "I was expecting a more aggressive goal," McGuire said. "But even though it's conservative it's going to be tough [to make that goal]." McGuire cited the fact that Microsoft is only offering one version of the device and the rapid nature of the media-player market, which is moving forward with new, cutting-edge devices all the time, as challenges for the vendor. Microsoft's achievements with Zune will depend on how successfully it builds a community around the product with its Zune Marketplace software and online store, as well as how quickly it can upgrade the initial Zune device with new features and models, McGuire said. Zune is in a distinctly different position than iPod was at its launch. IPods could only be used with Apple's Macintosh computers, which have a significantly smaller market share of the desktop computer market than Windows machines, the platform for Zune. In October 2001, when iPod was released, Apple PC market share was about 2.4 percent. And iPod was an unproved device, one of the first of its kind in a market that Apple ostensibly created, whereas Zune has the benefit of entering a thriving market. Of course, iTunes software for iPods now runs on millions of Windows PCs in addition to Macs. To date, Apple has sold more than 67 million iPods, and should sell about 82 million by the end of the year. The company has several versions of the iPod -- the video iPod, the iPod nano and the iPod shuffle -- in various sizes and colors. There are also an extensive array of accessories available for iPods. Microsoft's 30G-byte Zune costs US$249.99, the same price as the video iPod, but it's different from the iPod in two key ways. Zune includes an FM tuner and wireless capability that allows users to share songs between devices.
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Microsoft attempts to win over the iPod-infatuated Review After five years Microsoft has decided to combat Apple's domination of the portable music market head-to-head with Zune - a hard drive-based MP3 player with full colour screen and built-in Wi-Fi music sharing...â¦
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Tight-lipped on prices, availability Microsoft yesterday revealed what World+Dog already knew: what it's upcoming Zune-branded digital music player will look like. Yes, the star of US Federal Communications Commission filings and blurry, amateur-look picture leaks is official.â¦
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Microsoft MP3 player exceeds expectations Microsoft expects sales of the Zune to hit the one million milestone by the end of June, almost eight months after the product made its debut. Apple on the other hand has sold 100 million of the music players since its launch in October 2001.â¦
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CHICAGO _ Microsoft Corp. said Thursday that its Zune digital music player will allow users to share music with each other.
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By Benjamin J. Romano, The Seattle Times  Sep. 14--Microsoft this morning officially unveiled Zune, its entry in  the portable digital music and entertainment market dominated by Apple  Computer's iPod and iTunes.
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Sales of the Microsoft Zune appear to be trailing off rather quickly after a fast start, leading some analysts to believe consumer interest is waning. The best selling model, black, ranks well below its competitors in sales.
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Microsoft plans to release its Zune music player on Nov. 14 in the U.S., just ahead of the holiday gift-buying rush.
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(InfoWorld) - On the day Apple revealed its first Wi-Fi-enabled, touchscreen iPod, Microsoft's rival to Apple's wildly popular multimedia player got a little less expensive. The Zune device from Microsoft now costs $199, $50 less than its original price tag. Microsoft announced the price cut on its Zune Insider blog on Tuesday, a day before Apple was rumored to beÂ introducing new iPod modelsÂ at an event in San Francisco, which the company did indeed do. Naturally, Microsoft did not mention Zune's archrival in its blog post, saying that the price cut had been in the works for some time. "Itâs part of the normal product lifecycle, something weâve had on the books for months," according to the blog post. "We just got some research back and customer satisfaction with the 30GB device is really high (around 94 percent), and we expect even more consumers will now want to discover the Zune experience at the new lower price." With the new iPods introduced by Apple CEO Steve Jobs in San Francisco on Wednesday, that prediction doesn't seem too likely. The new iPod Touch that Jobs unveiled is the first iPod with Wi-Fi capability, one of the differentiators between the current iPod lines and the Zune device, which was launched with Wi-Fi last November. iPod Touch also is similar in look and feel to theÂ recently launched Apple iPhone, and features touchscreen controls that are making Apple's phone/multimedia device combination a hit with customers. In other bad news for Zune, Apple on Wednesday also has cut the price on its 80GB iPod from $349 to $249, which makes it only a fraction less expensive than the 30GB Zune. It also has introduced a 160GB iPod for $349. According to Jobs, Apple has sold 110 million iPods to date. There are rumors that, to compete more aggressively with Apple, Microsoft will introduce new Zune devices by the holidays with new features and form factors, but so far the company has declined to divulge specific details. There have also been hints from executives that an iPhone rival is in the works. Microsoft has said from the beginning that Zune is a long-term investment, and expects it will take some time before the device will be a worthy competitor to iPod, which has a five-year head start and Apple's brand power behind it.
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The Zune, Microsoft's much-hyped answer to Apple's trend-setting iPod, had a good first four days of sales, says a leading research firm. But consumer electronics analysts don't think Apple has anything to worry about. The NPD Group, which tracks sales at most top retailers, says the Zune digital music device had a 9% market share in its first sales days Nov. 14-18, compared with 63% for Apple. The research firm hasn't reported sales for the all-important Thanksgiving holiday selling weekend.
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Microsoft concedes, as many predicted, that its Zune strategy can't happily coexist with a program designed to promote others' devices and services.
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Microsoft's Zune will have to work very hard to unseat the dominance of Apple's iPod and iTunes say industry experts.
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Microsoft's Zune music player, a rival to Apple's iPod, goes on sale in the US, receiving mixed reviews.
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Microsoft Corp.  may have  an opening with its recently launched Zune digital music player  to gain market share against the iPod, as a Reuters survey  showed that among consumers expressing interest in the Zune 35  percent of them were upgrading from an existing player.