Microsoft: 1M Zunes to be sold by June
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Microsoft Corp. said Wednesday that it expects to sell 1 million of its new Zune music players through the first half of 2007. That figure would pale in comparison to Apple Computer Inc.'s market-leading iPod, but Microsoft contends it would be a good start.
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Microsoft issued its second firmware update for its Zune music device, offering stability and performance improvements. In addition, a version of the software was released that is compatible with Windows Vista.
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Often forgotten amid all of the iPhone hype, Microsoft, too, makes a portable music player that is holding its own in the marketplace - at least for a first generation product. The company is now reportedly preparing a second revision called the "Scorpio" with an 80GB hard drive, which will join a new flash memory based Zune dubbed "Draco."
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Software giant Microsoft said that its Zune MP3 player challenge to Apple Computer's internationally popular iPod will hit US stores on November 14.
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Microsoft could dominate the media player market if it can turn the Zune into a media-optimized, extensible mini-PC that really works.
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While Microsoft's new Zune won't topple iPod as the leading media player, a survey indicates it could eventually take sales away from Apple.
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(InfoWorld) - In what can be seen as either a joke or a real attempt to get employees to give up Apple iPods in favor of the Zune MP3 player, the team at Microsoft that builds Zune has set up a bin at its headquarters so employees can drop in iPods they don't want to use anymore. A photo of the "iPod Amnesty Bin" , which has on it an image of a bitten green apple and the words "Bite me," has been posted on Flickr. From the looks of the photo, not many people have been willing to give up their iPods, though a few of the earlier versions of Apple Inc.'s popular media players were lying at the bottom of the bin. A user who calls himself "fimoculous" and identified himself in an e-mail as MSNBC.com employee Rex Sorgatz , posted the photo, and said he thought the bin was someone's idea of a joke, nothing more. MSNBC.com is a joint media venture between Microsoft and MSNBC. "My guess is someone at Zune thought it would be funny, that's all," he said. Sorgatz said he is an iPod user, but could be convinced to switch if he found a superior product. Matt Rosoff, an analyst with Directions on Microsoft, also suspects the bin's placement is meant to be funny, as it would likely be in the Zune team's best interest to use the latest iPod devices for competitive purposes. Indeed, none of the iPods in the bin in the photo were current versions. "Most of the people [working on] Zune would want to have an iPod to keep track of the competition," he said. "On that team, they're all into digital music, so all of them probably have a bunch of players." The photo got numerous comments from Flickr users, who in general thought it was amusing, though some were less impressed than others by the joke. "Only someone stupid enough to buy a Zune would be equally stupid enough to not sell their discarded iPod on eBay," commented Ariel Waldman , (ariel_waldman on Flickr), a digital insights analyst at interactive marketing agency VML Inc. "That's funny," wrote another who goes by "Dr_Watso" on Flickr. " I was always amazed that people ... jumped on the iPod bandwagon, even though there are so many much better devices that cost a whole lot less." The Zune team is based at Microsoft's Bear Creek offices in Redmond, Washington, near the main campus. An Apple spokesman declined to comment. A spokesman for the Microsoft public relations agency that represents Zune said she could not reach anyone on the team for comment, but she suspects the bin is meant to be a joke or a "morale booster" for employees at Zune headquarters. Microsoft launched the Zune last November, but the device has done little to sap enthusiasm for the iPod, which remains a top seller in the hard-drive media-player market, according to marketing-research firm NPD. Still, Microsoft is ramping up its marketing efforts around Zune in the hopes it can drum up interest in the device. The company released a pink Zune earlier this month that is outselling Zunes in white and brown, according to the company, and also launched a new print advertising campaign to promote the pink Zune called "Sync Pink." Microsoft also introduced a new TV commercial that highlights the features of Zune that differentiate it from the iPod, such as wireless sharing and the FM radio tuner. Microsoft is leveraging the popularity of its Xbox game console to promote Zune as well. In light of the highly anticipated release of the "Halo 3" Xbox game later this year, Microsoft unveiled a limited edition, "Halo"-themed Zune that comes preloaded with "Halo" videos, soundtracks and trailers. The device will be offered exclusively at GameStop retail stores and on its online store beginning June 15. There already have been preorders for the device, Microsoft said.
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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's highly-anticipated "Zune" portable media device is set to make its first official appearance at an invite-only press event Thursday. The unveiling will follow the introduction of a completely revamped iPod lineup by Apple just two days earlier.
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It's not just about Apple's music players. Microsoft's Zune player also got a little less expensive today.
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(InfoWorld) - Microsoft has beaten itsÂ goal of shipping over a million Zune digital music players by June, according to a newspaper report. Robbie Bach, the president of Microsoft's Entertainment and Devices Division, said it has already passed the million mark during an interview with the San Francisco Chronicle published Monday. The Zune has a 10 percent market share in the hard-disk-based music player category, he added. "It's a good start. It's not an overwhelming start. I'm not going to pretend it's some gigantic move," he was quoted by the newspaper as saying. The million unit figure bests Apple. It took the iPod 14 months to reach 600,000 shipments, but it was much earlier in the game than the Zune, when the market for digital music players wasn't so hot. Apple has likely sold around 25 million iPods over the same time it has taken the Zune to reach its goal, according to financial analysts. Microsoft has a lot more work to do with the Zune. Despite a better-than-expected start, it's far behind the iPod both in terms of number of users and popularity. Apple sold 10.55 million iPods during the three months ending March 31 and announced it had sold its 100 millionth on April 9 of this year. The company has also generated enthusiasm for the device through more than 4,000 accessories made for the iPod, including stereo hookups in more than 70 percent of 2007-model U.S. cars and a deal with Nike to use iPods with certain running shoes that collect workout information. The company also has its new iPhone coming out soon, a product Bach indicated Microsoft will not compete against directly with a Zune phone, according to the Chronicle report. Microsoft will continue to work with handset makers to provide software used in different styles of mobile phones, because mobiles are deeply personal devices, he said. "In the phone space, we're very comfortable with the model we've chosen....We work with handset manufacturers and operators to produce that web of offerings while still producing the same consistent software so people can get done what they need to get done regardless of which phone they choose," he reportedly said. The San Francisco Chronicle article can be found on the WebÂ here.
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(InfoWorld) - Microsoft's Zune digital media player will ship in the U.S. on Nov. 14 for $249.99, the company said Thursday, in line with the price of video iPods already available from Apple Computer. MicrosoftÂ announced its Zune playerÂ and the accompanying music store, called Zune Marketplace, earlier this month, but it did not provide pricing at the time. Some industry insiders believe Microsoft had to rethink the pricing after it learned that Apple was about to lower the price of its video iPods, which it recently did. Like the video iPods, the first Zune players will come with 30GB of storage. Microsoft also unveiled pricing for Zune Marketplace. Unlike Apple's iTunes, which lets users buy individual songs or entire albums but does not offer a subscription service, Microsoft will offer a monthly subscription called Zune Pass. For $14.99 a month, users will have access to millions of songs, Microsoft said. However, they won't actually own those songs and will only be able to access them while they have a subscription. Users will also be able to purchase songs individually using Microsoft's points system, which works a bit like a prepaid phone card. One track will cost 79 points -- or about $0.99, which is what iTunes charges per song. At retail, consumers can purchase 1,200 points for $15, 2,000 points for $25, 4,000 points for $50, or pay $44.97 for a three-month Zune Pass. Zune accessories will range in price from $19.99 to $99.99. They include the Zune Car Pack, which offers a built-in FM tuner with AutoSeek and the Zune Car Charger, and The Zune Home A/V Pack, which includes five products that integrate Zune with a television and music speakers. More information isÂ available here.Â  Microsoft is differentiating its Zune player from the iPod in several ways. In addition to allowing users to play music, videos and photos on a screen, the Zune player will include wireless technology and a built-in FM radio tuner. So far, iPods lack both of those. Zune devices also will come preloaded with media content, which iPods don't have. Songs the players will include out of the box are: âWicked Gilâ by Band of Horses, "The Mating Game" by Bitter Sweet, "Alala" by CSS, "At the End of the Sky" by Darkel, "Signs of Life" by Every Move a Picture, "Stay" by Small Sins, "Tell Me Tell Me" by The Adored, "Open Book" by The Rakes, and "A Pillar of Salt" by The Thermals. The music videos included with the Zune player are from several artists on Seattle's Sub Pop Records label, such as Chad VanGaalen, Kinski and the Fruit Bats. The players also will include film shorts on skateboarding, mountain biking and snowboarding. Microsoft didn't provide any availability information for outside of the U.S.
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InfoWorld - Microsoft has beaten its&#160;goal of shipping over a million Zune digital music players by June, according to a newspaper report.
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Microsoft Corp.  forecast on Wednesday that sales of its Zune music player will exceed one million units by the end of June 2007 despite a tepid start for the device.
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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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Microsoft Corp.  sees expanding  the digital music market -- and not necessarily video -- as the  priority for its new "Zune" portable media player, a company  executive said on Thursday.
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Zune is singing a new tune these days. A Microsoft executive has announced that over one million units of its music player have shipped. As the Zune has been out about nine months, that puts the Redmond, Washington-based company ahead of its previously announced plan to sell one million in a year.