Prince McLeanMicrosoft's latest 10-Q filing stated that "Zune platform revenue decreased $100 million or 54% reflecting a decrease in device sales." The music player's sharp decline in revenues helped erase 60% of the company's earnings in its Entertainment and Devices Division, which includes the Xbox gaming platform.
Apple's iPod business, once feared to be at a dead end with satiated demand, hit a new quarterly unit record with sales of 22.7 million units. That's just 3% higher than the company's sales in the year ago quarter, but demonstrates a demand for innovative products even in the midst of difficult economic times.
Apple's record iPod sales don't include the iPhone, which Apple has referred to as its "best iPod yet." With iPhone sales, Apple sold over 27 million mobile devices last quarter, and over 208 million in total since it began selling the iPod.
Key to Apple's success has been its efforts to remain differentiated with unique features while also staying familiar and easy to use with the company's iTunes software. Microsoft's Zune debuted with some unique features, but the company's software churned as MTV pulled its URGE store from Windows Media Player, forcing the company to ship an entirely new, unfamiliar, and not quite functional Zune 2.0 desktop app.
Last year, Microsoft released a new software update but no significant new hardware refresh, leaving the tarnished brand without anything new to sell just as Apple continued to redefine its iPod line with a revamped, Internet browsing iPod touch. A rumored Zune partnership with Nokia also failed to materialize.
Apple's strength in digital media sales within iTunes also helped to keep the iPod in the leadership position among music players, holding on to 71% market share. Growth in iPod touch sales was particularly fueled by its new designation as a handheld gaming platform, leveraging the support the iPhone Apps Store has received from developers.
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This isn't a massive surprise, as Steve Ballmer's latest comments on the subject seemed to suggest that Microsoft have more or less written off the Zune.
http://www.appleinsider.com/articles...une_phone.html
They need a ZuneTouch using their amazing multi-touch technology; you know, the one that's the size of coffee table.
Ack. Its so predictable its not even fun to watch anymore.
Better get Windows 7 out the door pretty quick boys or its going to get mighty cold up there in Redmond this year.
maybe a zune-table and you can carry it in your car or play pingpong on it.
maybe a zune-table and you can carry it in your car or play pingpong on it.
You mean kinda like this
http://www.youtube.com/watch?v=AZO8sfmpKIQ
I am surprised that iPod has only 71% of the market. I just don't see 29% of people listening to music on something other than an iPod. I teach in a community college and the students I see are virtually all using an iPod for music. At my gym over the last year or so I see the occasional portable CD player, one Zune, a couple of Walkmen, and the odd "other" once in a blue moon. Nowhere near a third of the market. Where are all these people not using iPods? Third world perhaps?