The Chicago Tribune James Coates Computers Column: Microsoft's Low-Key Zune Rollout Doesn't Mean iPod is Safe
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By James Coates, Chicago Tribune  Sep. 17--Even folks lucky enough to live in caves probably know by now that, thanks to the iPod, Apple Computer Inc. enjoys hands-down supremacy for elegant digital entertainment gear and simple downloads.
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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.
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This week's column is a collection of odds and ends from a tech reporter's inbox. Let's start with the odd: EVERYTHING iPOD: The iPod continues to push our culture forward in significant ways. No longer is bringing reading material to the bathroom enough; now you can have a soundtrack.
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On the day Microsoft launched it&#39;s online music service, Apple Computer responded to accusations that its doesn&#39;t offer consumers choice in music file types
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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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(InfoWorld) - Financial analysts watching the consumer electronics space report that early sales of Microsoft Corp.'s Zune player should give little reason for iPod loyalists and Apple Computer Inc. to fear this holiday season. Since its retail debut on Nov. 15, customer interest in Zune has been lackluster, analysts report. Early reviews of the product have been less than stellar as well. According to a research note published Tuesday by PiperJaffray senior research analyst Gene Munster, only 8 percent of 40 retailers surveyed by the firm recommend the Zune to customers, while 75 percent recommend Apple's iPod. Moreover, some MP3 salespeople hadn't even heard of Zune, even though the players are being sold at their stores, he wrote in his report. Quotes from retail clerks cited in Munster's report range from them claiming they don't know what the Zune is, to comments that Zune is a good option if a customer does not use Apple's iTunes software. "To be honest, I don't really know much about the Zune," one clerk is quoted as saying in Munster's report. Another said, "I don't suggest the Zune because it is really heavy," according to the report. Zune also did not fair well against other MP3 players and Apple's iPod even during its initial week of sales, when the hype surrounding the product was at its peak. According to Munster's report, during its launch week on Nov. 16, Zune held the seventh spot on online retailer Amazon.com's top 10 best-selling MP3 players list, and it fell from that spot to 13 on the list only five days after launch, on Nov. 20. "The buzz that Microsoft was able to generate for the Zune's launch clearly helped the player in its first week, but much of the publicity took the form of Zune/iPod comparisons," Munster wrote. He added that these comparisons show that Zune "failed to match up in the eyes of most reviewers" to the iPod, a fact that negatively affected sales of the device. Deutsche Bank analyst Chris Whitmore wrote Monday that the iPod continues to be a strong seller going into the busy holiday shopping season, and the 30G-byte video iPods -- with which Zune competes -- "appear to be immune to the Zune." He said both the 30G-byte video iPods and the new 4G-byte iPods nanos currently are popular with consumers. A note about Apple's performance from financial firm UBS IT hardware analyst Ben Reitzes also said that Zune does not appear to be any threat to iPod at this time. To be fair, Apple has a five-year head start in the music and video player market, and no one expected Microsoft's first entry would be comparable right away to the immensely popular iPod. Microsoft has said it plans to invest significantly in the Zune over the next several years, and the device is expected to become more competitive. Microsoft's 30G-byte Zune costs US$249.99, the same as Apple's video iPod, but is 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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It&#39;s official. All iPod users are music thieves - according to Microsoft CEO Steve &#39;Monkey Boy&#39; Ballmer. &quot;The most common format of music on an iPod is &#39;stolen&#39;,&quot; he told reporters in London today, according to a Silicon.
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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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Reviewing iTunes 7 and the new line of iPods, David Pogue writes for the New York Times, you can&#146;t &#147;find a better online music store, or a free jukebox program as powerful and clean as iTunes. And you certainly won&#146;t find a music player that beats the new iPods in polish, capacity or even price. They come dazzlingly close to perfection.&#148;
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After two weeks of hands-on testing, an iPod freak says Microsoft's music player just might give the Apple gadget a run for its money. Commentary by Leander Kahney.
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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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SanDisk's new music player is nice, and RealNetworks' companion Rhapsody subscription service offers some cool features. Together, can they make an iPod killer? Commentary by Leander Kahney.
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A slow sales start for Microsoft's new Zune music player means it is unlikely to be a threat to the popular iPod this holiday season, according to analysts.
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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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Blog: Robbie Bach, President of Microsoft's Entertainment and Devices Division reveals that 1 million Zune MP3 players have been sold since the product launched last year.
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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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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.