MS: 1 million Zune sales by June 2007
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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 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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Digital media player will ship November 14 for $249; Zune Marketplace details also released.
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Microsoft Corp.'s Zune music player looks a lot like an iPod, acts a lot like an iPod and will cost about the same as an iPod. The software giant said Thursday that it will charge $249.99 for the device, signaling that it isn't planning to spark a major price war to gain market share.
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Microsoft's iPod rival Zune will be on store shelves in time for the holiday shopping season.
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Microsoft Corp.  said on  Thursday that more than 200 million users will be using one of  its new products -- including its highly-anticipated Windows  Vista operating system, Office 2007 software suite and Exchange  server -- by the end of 2007.
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By Troy WolvertonMicrosoft's Zune had a decent debut last month, but Apple Computer's iPods continued to dominate the MP3 market, according to new data from market research firm NPD Group released this week.
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Blog: During Microsoft's July 19, 2007, earnings report, it was announced that sales of Zunes met their predicted goal of one million.
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Blog: A Zune fan site is reporting on a Microsoft patent filing that describes a system for paying Zune users commissions for sharing a song that the recipient ends up buying.
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Microsoft has decided to drop the price of the Zune in an effort to spur sales, while indicating it hadn't completely ruled out a Zune phone. Effective Wednesday, the price of Microsoft's competitor to the iPod is now $199 USD.
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Microsoft's answer to the iPod, the Zune player, will cost $249.99 and is slated to ship Nov. 14.
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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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Are the devices in this picture interesting enough to make you buy a Zune instead of an iPod?
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Tycho:  1:25 - When we say "This shit about the Zune," the revelation that caused all the hubbub was from Zunester - one of these MS  insider blogs (like Zune Insider or Gamerscore).  David Caulton, the man who runs the Zunester blog, wades into the comments and is as frank as he can possibly be with the people who comment there.  I recognize that people are working hard on it.  In the future, I hope that their hard work and my requirements for a device of this kind will converge.
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Strong sales of new and old products alike led Microsoft to its fastest first-quarter growth in eight years with the company reporting growth in all five business segments and both revenue and EPS (earnings per share) that beat analyst expectations.Revenue for the fiscal quarter ended Sept. 30 was up 27 percent at $13.76 billion compared to $10.81 billion a year ago, Microsoft said Thursday. Consensus estimates from Thomson First Call analysts were for the company to generate revenue of $12.57 billion. Microsoft&#39;s EPS for the quarter was $0.45, which also soundly beat Thomson First Call consensus estimate of $0.39. Net income for the quarter was $4.29 billion, a 23 percent increase over the $3.48 billion reported a year ago.At $5.92 billion, operating income for the quarter also had double-digit percentage growth: An increase of more than 25 percent over operating income reported for the same period last year of $4.47 billion.Microsoft&#39;s first quarter was buoyed by the highly anticipated launch of the Xbox 360 game Halo 3 on Sept. 25, just days before the quarter&#39;s close. In its first 24 hours on sale, the game brought in $170 million in sales; it became the fastest selling video game in history after being in the market for just a week and a half, according to the company.Strong performances from Microsoft&#39;s client, business, server and tools, and online divisions also contributed to revenue growth in the quarter. In particular, Microsoft said sales of its Windows Vista OS experienced double-digit growth through multi-year business contracts, and demand for Microsoft Office, Windows Server, and SQL Server was also high.Looking ahead, Microsoft said it expects to report revenue in the range of $15.6 billion to $16.1 billion for its second quarter, which ends Dec. 31. Operating income is expected to be in the range of $5.9 billion to $6.1 billion, while diluted EPS are expected to be between $0.44 to $0.46 for the second quarter, the company said.For its fiscal year 2008, Microsoft expects revenue in the range of $58.8 billion to $59.7 billion and operating income in the range of $23.3 billion to $23.7 billion. Diluted earnings per share are expected to be between $1.78 and $1.81 for the fiscal year, the company said.
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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.
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Microsoft Corp sold 4.3 million  Xbox 360 video game consoles in the last three months of 2007,  helped by hit titles such as "Halo 3" and "Mass Effect,"  according to company data released on Thursday.