Analyst Sees 'Modest Success' for Zune
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Microsoft Corp. will likely lose money on its new music player, Zune, against Apple Computer Inc.'s "industry-leading iPod profitability," an American Technology Research analyst said Friday.
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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 Corp. MSFT.O said on   Thursday its new Zune music player will be sold at a price   matching Apple Computer Inc.'s AAPL.O market-leading iPod   and, as a result, lose money this holiday season.
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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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By Tamara Chuang, The Orange County Register, Calif.  Dec. 12--So many gadgets, not enough time. While I'm busy reviewing  Microsoft's new Zune for next week's Gadgetress, here are a few gadgets I've  seen or heard about recently that could come in handy for the holidays (hint,  hint).
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As Microsoft prepares to demonstrate its Zune player for the first time, Creative is turning up the volume with a new widescreen Zen Vision portable device. The company is also partnering not only with Amazon, but also TiVo.
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The Apple CEO was blunt that he believes the Zune is a failure, and that Blu-ray may have won the format war, but has probably lost the HD content battle.
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(InfoWorld) - The first Microsoft Corp. Zune products will hit U.S. retailers in time for the busy Christmas holiday season, with a 30G-byte digital media player and a Zune Marketplace online service the first to reach consumers, Microsoft said Thursday. The details of what Microsoft is offering with its Zune product line -- which will compete with Apple Computer Inc.'s iPod device and iTunes software and service -- sound similar to what Apple already offers, with a couple of exceptions. 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 either radio tuners or built-in wireless technology. Zune's wireless technology will allow users to share songs, playlists and photos between Zune devices, Microsoft said. A user can listen to any song they receive up to three times over three days, after which they must purchase it from the Zune Marketplace if they wish to continue listening. The Zune Marketplace, like iTunes, allows users to purchase media and manage their own media libraries. Users can purchase music tracks individually or buy what is called a "Zune Pass," a subscription service allowing users to download as many songs as they want for a monthly fee. The Zune device will come in three colors -- black, brown and white. In addition to viewing media on the 3-inch screen, users also can customize the screen with personal photos or themes, Microsoft said. In another deviation from Apple's plan, Zune devices will come preloaded with content from record labels. Labels that are teaming with Microsoft to provide music for the players include TS, EMI Musicâs Astralwerks Records and Virgin Records, Ninja Tune, Playlouderecordings, Quango Music Group, Sub Pop Records and V2/Artemis Records. After months of speculation, Microsoft confirmed in July that it was developing a music player and service to rival Apple's iPod and iTunes. If other attempts to unseat the iPod are any indication, Microsoft will have a tough road ahead. Recently, Dell Inc.Â stopped selling its DJ Ditty music player on its Web site and ended development of its own line of music players. Still, iPod market share has fallen in the past year, leaving room for rivals in the market. At one point the music player had more than 80 percent market share by analysts estimates, but the latest reports give the iPod a little over 70 percent market share. In addition to the devices and the online service, Microsoft also will offer three Zune accessory backs that will be sold separately and will be available at the same time as the Zune devices. The Zune Car Pack includes a built-in FM tuner with AutoSeek and the Zune Car Charger. The Zune Home A/V Pack includes five products that integrate Zune with a television and music speakers: Zune AV Output Cable, Zune Dock, Zune Sync Cable, Zune AC Adapter and the Zune Wireless Remote for Zune Dock. And the Zune Travel Pack offers five products for traveling with the Zune device: Zune Premium Earphones, Zune Dual Connect Remote, Zune Gear Bag, Zune Sync Cable and the Zune AC Adapter. Like Apple, Microsoft also is working with accessory manufacturers to provide more add-on products for Zune devices. Among the companies with whom Microsoft is teaming are Altec Lansing, Belkin, Digital Lifestyle Outfitters, Dual Electronics, Griffin Technology, Harman Kardon and JBL, Integrated Mobile Electronics, Jamo International, Klipsch Audio Technologies, Logitech, Monster Cable Products, Speck, Targus Group International and VAF Research.ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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Microsoft announces release date and price, which means Zune will compete directly with Apple's 30GB iPod. Photos: Microsoft presses play on Zune
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Microsoft says it is on track to sell its millionth Zune music player, the software company's would-be challenger to Apple's enormously popular iPod.
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The music player has slipped from its early perch in the sales charts, but Redmond is still whistling a happy tune.
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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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Correcting a translation error that sparked a number of reports stating Microsoft planned to release its Zune portable music player in Europe, but not until 2008, the company now says it has no set timeframe. The confusion came in a response Steve Ballmer made to a German magazine.
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In what a Microsoft executive claims is a good but not overwhelming start, the company says it will have sold 1 million Zune media players by the end of June.
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Microsoft Corp. said yesterday it expects to sell 1 million of its new Zune music players through the first half of 2007. That figure pales in comparison to Apple Computer Inc.'s market-leading iPod, but Microsoft contends it would be a good start.
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In what a Microsoft executive claims is a good but not overwhelming start, the company says it will have sold one million Zune media players by the end of June.
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Microsoft Corp.  said on  Thursday its new Zune music player will be sold at a price  matching Apple Computer Inc.'s  market-leading iPod  and, as a result, lose money this holiday season.