Zune Thoughts: Zune's 2% (Not 9%) Market Share

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Tuesday, December 26, 2006

Zune's 2% (Not 9%) Market Share

Posted by Darius Wey in "Zune Talk" @ 11:00 AM

http://www.appleinsider.com/article.php?id=2323

"When all the retail sources were polled and the data finely analyzed, Microsoft's fledgeling digital media player garnered a 9 percent unit share of the hard disk drive (HDD) segment -- or just shy of 2 percent of the overall U.S. market -- according to November data from NPD Group. That's a significant correction from an initial sales surge and a more selective data set that awarded Zune a staggering 9 percent share during its first week on the market. In speaking to AppleInsider, NPD analyst Steve Baker said the most recent share data was compiled from a more comprehensive list of retail sources that factored in iPod sales at Apple's own stores, and is therefore more representative of the Microsoft player's overall market share. Figures released by the firm immediately following Zune's launch in mid-November were culled from aggregate sales data coming only from the nation's top electronics dealers, which did not include Apple retail stores."

So it appears that Zune didn't quite do as well as first thought. The initial report of 9% of the market share was quickly corrected to 2%, after factoring in iPod sales at Apple's own stores and resellers. But when you're looking at a first-generation device entering a market that's devoured by the iPod, coupled with the occasional odd bit of marketing, is 2% really that surprising?


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