Zune Thoughts - Daily News, Views, Rants and Raves

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All posts tagged "market"


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?


Wednesday, December 20, 2006

Zune Hurt iPod... A Little

Posted by Aaron Roma in "Zune Talk" @ 10:00 AM

http://www.gizmocafe.com/blogs/gizmo_cafe_blog/archive/2006/12/19/100961.aspx

"In November of 2005, only Creative existed to challenge Apple’s throne atop the hard drive digital music player market. At that time, the iPod line owned 86% of US sales, with Creative coming in a (very) distant second at 7%. This year, after a generally slow start, the Zune has further eroded the iPod’s dominance. Although Cupertino execs are unlikely to fret just yet, the iPod’s HD share is now 82%, with the Zune and Creative HD coming in at 9% and 4% respectively."

With the introduction of Zune this holiday season, Apple's iPod has at least suffered a little flesh wound. iPod's market dominance of Hard Drive based players has dropped 4% over last year, with Zune replacing Creative as a very distant second. Personally I think next holiday season should be much more telling for the future of the market. By that time Microsoft should have Zune's feature set more rounded out, and hopefully beefed up the product line, and Apple might have a return volley for Zune.


Wednesday, December 6, 2006

Misleading 9% First Week Market Share

Posted by Michael Boutros in "Zune Talk" @ 09:00 PM

We have all heard of the report by NPD Group that in the Zune's first week, it captured 9% of all sales. However, what most of you have not heard is that the NPD Group does not count any sales from Amazon.com, Walmart, or Apple Stores, says the well-informed Adrian of ZDNet. Walmart is very big in North America, especially during the Christmas season, and Amazon is the internet version of Walmart. This explains how the Zune was doing "so well" but was still very low on the Amazon top sold electronics list. Also, I am willing to bet at least a large chunk of iPod purchases are from Apple Stores, yet the NPD doesn't count them at all. I doubt it's because they don't feel like it, but probably because the stores do not want to give them that information.

So while the Zune did get 9% of portable media players, it is misleading because three extremely large MP3 player retailers were taken out of the picture. If the writers who initially reported the 9% market share knew about the exclusion of these 3 retailers and didn't mention it because they wanted to make the Zune look better, I am honestly disappointed. A good writer shows the positives and negatives of anything.


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