April 25, 2007 6:07 PM PDT

Zune numbers holding steady

by Steven Musil
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Sales numbers are out for March retail sales of hard-drive based music players, and Microsoft's Zune is holding steady in its No. 2 market position. According to numbers from NPD, the Zune's share of the market was 9.1 percent, a slight increase from its 8.8 percent share in February.

The numbers come about a month after Microsoft released a minor update to the Zune software aimed at fixing several issues, including one that was causing some users to hear skipping when playing back purchased songs.

Microsoft also announced Wednesday that it will launch a new print and broadcast ad campaign in May.

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven.
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And yet again - C|Net parrots wrong figures
by Hep Cat April 25, 2007 6:59 PM PDT
Hey, C|Net - what's the Zune's market share when you include
direct sales from Apple of the iPod?

About 1.7%.

So much for accurate reporting. Microsoft buys a lot of ad space
with you guys, don't they?
Reply to this comment
a lot of ad space
by DrtyDogg April 25, 2007 7:05 PM PDT
Almost as much as Apple.
Read carefully.
by Jens.j April 25, 2007 8:44 PM PDT
First, the last three ads I've been looking at on CNET have been those oh-so-ubiquitous ads of Apple unnecessarily typifying the Windows user as shallow and oblivious.

Secondly, Mr. Musil pointed out clearly that sales numbers were out for "March RETAIL sales". Now customarily, if you will excuse the quick commerce lesson, the RETAILER buys goods in bulk from the manufacturer and sells in smaller quantities to the consumer. Though Apple is selling small quantities as you pointed out, that situation does not apply ipso facto. Long story short, the figures presented still stand.
pretty dumb
by yuca2k1 April 25, 2007 11:18 PM PDT
every time i read about an mp3 player being compared to the apple ipod in terms of market share, direct sales from apple are never included. no matter what website you go to. It doesn't make sense to do that because they want to know how well the product sells next to the dominant one, while being on the same shelf. for example walmart and best buy. unless they start selling zunes in the apple store, apples numbers will never be included. stop flaming cnet if you dont like their articles dont read them, they bring us awesome reviews and the latest news for free. I love you apple guys and your little club with less than 5% market share in home computers. Microsoft rules!!!!
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Alternative headline
by MadKiwi April 25, 2007 6:59 PM PDT
Zune Makes Little Progress in Meeting Microsoft's Expectations

And FWIW I think I'm right in saying that NDP figures do not inlude sales from Apple's online store or other major outlets of iPods so the 9.1% share is probably inflated anyway...
Reply to this comment
All I can say....
by LarryLo April 25, 2007 7:46 PM PDT
..is I don't know anyone, not 1 person who owns a Zune (not that that proves anything or is scientific). I just think those number might be a bit inflated.

I thought Sandisk was #2 anyway? Check out amazon's MP3 top sellers list, Zune is #16
Reply to this comment
Surprise
by krushyou April 25, 2007 8:36 PM PDT
Anything Micrsoft related gets immediately beat down no matter what.

IMO the zune has a better interface, sounds better and has the potential to be something.

The only issue I see with the zune was the skipping issue (which has been resolved)and the size is bigger then IPOD but it's made to view movies with the bigger screen.

Seriousily, if there is one positive story on here its because Microsoft is paying for it meanwhile on practically every article on the right hand side the mac vs pc commercial is playing.

It would be nice if people could judge a product rather then the company behind it.
Reply to this comment
Seems the pundits were right...
by varun_prasad April 25, 2007 10:03 PM PDT
Ignore for a moment the fact that these figures exclude online sales.

Seeing how the ipod's numbers seem not to have changed either, since the introduction of the Zune, it seems that the Zune is indeed eating into the smaller players, like Creative and Sandisk. Kind of rough being a MS partner right now. Probably explains why Sandisk is partnering with Real and Yahoo, instead of MS.
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The article also ignores...
by Hep Cat April 26, 2007 7:57 AM PDT
This article also ignores sales in Apple's stores - not just Apple's
web site.

So, among retail outlets (excluding Apple stores) that sell .mp3
players, 9.1% of the players sold at retail were Zunes?

A large chunk of Apple's iPod sales are through Apple's web site
and the Apple stores - and NPD's numbers don't count either of
these outlets.

In other words, about 9.1% of the _hard drive-based_ players
sold at Best Buy, CompUSA, and Circuit City were Zunes. I'd love
to see concrete retail sales numbers - this has to be less than 1%
of the total market for .mp3 players.

What's next, an article about how Vista is selling like hotcakes?
Zune has 9.1% of *hard drive* based ,market
by scarface74 April 26, 2007 8:03 AM PDT
http://www.windowsitpro.com/Articles/ArticleID/95902/95902.html?Ad=1

It's well known that NPD numbers do not include sells from the Apple store, Walmart, or Amazon, But the 9% only includes hard drive based players.

Last time I checked, flash based MP3 players make up about 60% of the market.
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The Thing To Worry About
by ifiredmyboss.com April 26, 2007 1:41 PM PDT
The thing to worry about with MS is that they have deep enough pockets to keep making products until they are successful. Where are WordPerfect, Lotus, Novell, Nestscape.... All USED to be dominant players.
Reply to this comment
I find this Zune story hard to believe.....?
by drmrdex April 26, 2007 5:41 PM PDT
I know a manager who runs an electronic store that sells mp3
players and gaming consoles. Everyday his store sells iPods or
players made by Creative, but the Zune hardly ever moves on the
sales floor! He says he's amazed if even one or two Zune players
sell in a month!
Reply to this comment
The Numbers Are Fabricated
by Sumatra-Bosch May 22, 2007 10:31 PM PDT
The only people who buy Zunes are, research has proven, escaped mental patients and confused grandparents.

Almost 30 have been sold this way. The rest are in warehouses and being used by night cleaning crews as pucks in floor hockey games. (The most popular way to prepare them is to wrap them in Teflon tape.)

They know no one would notice them missing.

RSB
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