Microsoft: Zune sales are just fine
January 27th, 2009 Leave a comment Visited 52 times, 1 so far today
Microsoft: Zune sales are just fine
Microsoft has now stated that the sales of their Zune media player are as per their expectations.
The company said: “Truthfully that category, Apple and us, didn’t grow like it did last year. But Zune did fine. Right about our expectations and we feel pretty good about the direction that’s going.”
Market sources had stated that the sales of Zune dropped by almost half while Apple iPod also saw some drop in sales .
Microsoft said that one of the major reasons of the slowing down sales was the tough economic conditions.
Adam Sohn, the Zune’s director of marketing had this to say: “We are in a position where the category is also shrinking. So I think those are things that affected everybody’s sales, including Apple.”
Microsoft added that they are optimistic about this segment of the market and they are not even considering abandoning it.
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January 27th, 2009 at 4:03 pm
Zune sales are just fine? A 54% drop in revenues is “just fine?” Fine for whom. By the way, iPod sales were for this quarter, and for this year. Where are these people getting their information from? Candy stores?
I don’t doubt that many or even most Zune owners are satisfied with what they have. Here’s my thing: Apple dove into the MP3 market when that market was already well on its way to maturity. The iPod quickly made a big splash, and iTunes has played no small part in helping the iPod acquire a 70% market share. Apple did not engage in illegal, monopolistic business practices in order to achieve that level of prominence; nor did Steve Jobs hypnotize buyers, steering them towards the iPod.
When the iPod was released in October of 2001, it succeeded during a recession caused by the terrorist attacks of 9/11. If the current economic climate adversely affected the Zune and other consumer products, then it stands to reason that it also adversely affected iPod sales. Yet, Apple reported a growth in iPod sales for the most recent quarter, versus a 54% drop in Zune revenues. How much better would the iPod have faired this quarter without the deepening recession?
I believe that Microsoft and its investors need to re-evaluate the Zune with regard to how it affects other products, and how it affects shareholder interests. If I’m a Microsoft competitor — and I don’t believe that Apple and Microsoft compete in the sense that they appeal to very different groups of customers — then I truly hope that Microsoft continues to throw money and other resources at the Zune. Let them and their investors learn the hard way. Again.