Zune launch has little effect on iPod dominance

Despite a great deal of press coverage and a much-publicized launch last week, the Microsoft Zune has had no initial impact on iPod sales, according to analysts. “Initial findings suggest that the introduction of the Zune has had little effect on the iPod’s dominance of the U.S. MP3 player market,” said Steve Lidberg, an analyst at Pacific Crest. “On Amazon.com, Apple iPod held three of the top-four-selling electronics devices, while the black Zune ranked 18th. On CircuitCity. com, Apple controls nine of the top 14 MP3 player spots, with the black Zune ranking 15th. While Zune may take some incremental share from second tier players such as SanDisk and Creative Labs, we believe Apple will maintain its approximately 75% share of the U.S. market.”