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Checks with retail stores show little Zune awareness

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By LC Angell

Contributing Editor
Published: Tuesday, November 28, 2006
News Categories: Digital Media

Salespeople are not consistently recommending Microsoft’s Zune player, and are overwhelmingly suggesting the iPod to customers, according to Piper Jaffray analyst Gene Munster. “We recently spoke with 40 big-box retailers to gauge which MP3 players salespeople were suggesting for more than $200 (i.e. the 30GB iPod, Zune or others),” Munster wrote in a report today. “We found that store clerks only recommended the Zune 8% of the time, while they recommended the iPod 75% of the time. In fact, some MP3 player salespeople had not even heard of the Zune, despite the fact that they sold it in their store.”

Munster also noted that the Zune has fallen down Amazon’s top-selling MP3 players list. “During the Zune’s launch week (on 11/16) the black model reached the 7th spot on Amazon’s top-selling MP3 players list,” Munster wrote. “But by 11/20 the player fell to the 13th spot, with the brown model at 22nd and the white model at 42nd. By 11/27 the black Zune was ranked 18th. The buzz that Microsoft was able to generate for the Zune’s launch clearly helped the player in its first week, but much of the publicity took the form of Zune/iPod comparisons… Due to the less than favorable reception, we believe the Zune will not materially impact iPod sales in the December 06 quarter.”

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Comments

21

Ah, slaughter, I misread your intentions…good thing I didn’t break out my “I have two degrees in writing, and what iLounge is doing isn’t hyperbole” argument. Because those make everybody happy, right?

Posted by Jeff Martin on November 29, 2006 at 6:45 AM (PDT)

22

The Zune is in the portable digital player space.  iPod is within that realm as well.

This site is about the iPod and the industry.  Case in point - iLounge also reviews headphones that are for any player with a minijack. 

If Zune is to impact the industry… then iPod would be affected.  Get the connection?

Posted by mflat5 in USA on November 29, 2006 at 1:36 PM (PDT)

23

What I don’t get is the Reuters article that was released today. NPD states a 9% market share in week one. That contradicts with all that I have read, seen. I know, some people (especially MS fanboys) were going to wait for the launch of this player, but that shouldn’t account for 9%.....

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061129:MTFH50076_2006-11-29_23-00-54_N29402267&type=comktNews&rpc=44

Any thoughts?

Posted by MarcelV on November 29, 2006 at 6:48 PM (PDT)

24

To all the zune-bashers: It’s great that you hate the Zune. Maybe would be better if you actually used the damn thing first, but to teach his own, right?

But as far as the “HAHAHA SILLY MICROSOFT TRIX ARE FOR KIDS” posts, don’t you understand Microsoft’s strategy? No one would dream that hte Zune would instantly displace the iPod, nor even gain a 25% market share. Microsoft’s strategy is to release a product and establish a beachead - get feedback - release a better product - repeat. They’re patient. They started infiltrating the console market 5 years ago - they’ve been willing to wait on that. Think they’re not willing to wait on mp3 players?

Stop acting like a bunch of scared children. You have your iPods. You love your iPods. So what’s the problem? Enjoy what you have instead of dissing what you don’t.

Posted by Aerothorn on November 30, 2006 at 10:23 AM (PDT)

25

Rolling Stone is calling the Zune a fiasco. Are they just being fanboys too?

Posted by Laer on December 1, 2006 at 9:25 AM (PDT)

26

I own 3 iPods, and now one Zune. Like them all. Like the Zune a little more, matt finish, I don’t have to pamper it like the iPod. Also I know that the touch wheel will not wear out 3 times in a year because it doesn’t have one.

Here is the thing. The zune plays music, is small enough to fit in a pocket, and holds 30 gig of music. Just like the iPod. They do the same damn thing it doesn’t take rocket science to work. So why bash it? I don’t get it. You didn’t build the iPod, you didn’t invent it, so you should not have any physical attachment to it. So why root for zune to fail?

You people need to get over the fact that there will be many music players on the market. Maybe you should focus more on important things in life, like why gas prices are going back up even though oil prices are down, why are troups are killing killed over in Iraq, and why cancer is still killing so many people.

On my zune right now - Ariving somewhere but not here - Porcupine Tree - Deadwing - Best album in 2005.

Posted by bry on December 4, 2006 at 1:09 PM (PDT)

27

Yes, that is a great song! smile

Posted by Laer on December 8, 2006 at 2:02 AM (PDT)

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