Microsoft (nearly) reaches 1 million Zunes sold

In an interview with the San Francisco Chronicle, Microsoft's Robbie Bach revealed that by the end of the fiscal year in June, they will have reached just over 1 million Zunes sold. The figure meets the sales goals Microsoft predicted at the product's launch last year. Bach was quick to admit that the 1 million mark isn't gangbusters when compared against Apple's recent announcement of 100 million iPods sold. Still, Bach assures that Microsoft's current 10% share of the hard-drive MP3 player market is still a "good start" and that they will continue to invest in the Zune. Bach dodged questions about a rumored Zune phone and wouldn't reveal much about the new Zune rollout scheduled for the fall, except to say that they will "expand" on the "social aspects of connecting people together". Some might say the cat's already out of the bag on the Zune's future, but I'm betting Microsoft may still have a few tricks up its sleeve before fall.

[Editor's note: This story has been corrected from an earlier version.]

(via SFGate)

[lh2712]

Not 10%, 1%, do the math...

1 million Zunes sold = 1% of the 100 million iPods sold.

[aatkinson]

Market Share is not just sales

Market share is the percentage or proportion of the total available market or market segment that is being serviced by a company. This number is based on how many are currently available VS how many have been sold. This is re-calculated every year and includes numbers from all available hard-disk based media players. It is not solely based on how many have been sold.

[audiodonald]

You're right, but...

...what I said is that Zune has 10% of the hard drive MP3 player market. Microsoft is probably pulling that figure from yearly sales, not total units sold. You're right about the iPod to Zune ratio, however. To be fair, the Zune has only been out around 6 months and it took Apple over 6 years to reach 100 million iPod sales (plus, that figure includes less expensive flash-based iPods as well).

[dankdweiss]

Yes but...

You are taking the number out of context.
"10% of the HARD DRIVE market"
Meaning they aren't counting nanos and smaller players, which use flash memory, not hard drives. So you math is correct, but you took the numbers out of the context in which they were used.

[rapier1]

New Math for the Jet Set

100 Million iPods also includes flash driven devices. The 10% share for Zune is
just in the hard drive based market. Also, market share doesn't commonly refer
to *all* devices of a certain type ever sold (whis is what the 100 million iPod
number refers to) but current market conditions. For example, Ford's current
market share isn't based on how many cars they've *ever* sold but how many
they are selling in a particular year or quarter.

[oxtail01]

The sales figure is pretty pathetic.

Only 10% of the hard drive market? And hard drive market is what percent of total mp3 player market? Maybe 30%?

[ClarkWells]

You are an idiot...

maybe you are a moron... or you were just didn't read exactly what the article says but microsoft does have 10% of the "HARD DRIVE BASED" mp3 market. and Apple has sold "100 million ipods" those ipods include alot of flash based players - probably at least 50% if i had to guess... Thanks for the math lesson anyway:)

[Rod Roddy]

Not quite...

Try something more like 67.4 million ipods sold. I call'um like I read'um. And even if there were 100 million ipods sold, you have to put into account the fact that Apple is tracking its sales figures. What about all the people who bought ipods and switched to another mp3. Or the ipods that were returned? Hmmmmmm?

[whosawhatsit]

Microsoft's 1M Zune claim misleading

Assertions that Microsoft was ahead of the curve on Zune production were
inaccurate, says an investigation by Business 2.0 into the subject. The
magazine found that Microsoft Entertainment division head Robbie Bach has
been misquoted in the text version of his interview, which alleged that
Microsoft had already beaten its modest goal of selling more than a million of
its media players by June. The executive had just reiterated earlier claims,
according to the actual quote.
"When we finish our fiscal year in June we'll have sold a little over a million
Zunes," Bach said in the actual audio recording. "So we feel very good about
that."

The change drastically reduces the expectations for the device, which slips
from better than expected sales to the same estimates as given shortly after
launch. Additionally, the financial news outlet also notes that the prediction
may only include sales to the stores themselves rather than actual customers,
raising the possibility that some of the million devices may remain on store
shelves by the end of June.

Apple by comparison sold few iPods during its early stages, mustering actual
sales of 600,000 in the first 14 months. Experts pointed out, however, that
the company was serving a much smaller market and had been limited
primarily to Mac users during the period. Over 100 million iPods have been
sold as of April this year.

[fooflaw]

is this even a significant opportunity for M$?

it is a pretty slick little device but it reminds me of coleco football trying to take down mattel back in the late 70s, just never had a shot.

this is being talked about at bizoplia, http://www.bizoplia.com/viewtopic.php?p=74#74

foo

[Rick Cavaretti]

Sales figures

I still don't know anyone who owns one. I've also never seen one 'on the street'.
But at the same time, I see a couple of Ipods strapped to people's arms during
the course of the day.

[constantine.gr]

Maybe Bill bought them all...

Have you ever seen a zune on the street? Do you know anyone who owns one? Do you know anyone who knows anyone who owns one? Come on guys - you're pulling our leg, right?