USAToday reports on Zune's first few weeks out the starting gate and according to analists they interviewed, it's not all bad. Microsoft claimed 9% market share of the portable media devices sold since the Zune launch, compared with 63% for Apple and just 8% for Sandisk.
"For a new brand that received limited to mixed reviews, and which is incompatible with the leading music store (Apple's iTunes,) as well as other music stores, it was a good launch," which is the retail equivalent of saying, "Other than that little incident Mrs. Lincoln, the play wasn't half bad."
The NPD Group analisys USA Today spoke with aren't affraid for Apple as a result of the Zune, and the numbers above bare that out. If anything, Microsoft's Zune may have more impact on Sandisk, given that the cost difference between Sandisk's top-of-the-line Sansa e280 -- a flash based 8gb player -- isn't much when compared with the 30GB hard drive based Zune.
1. Microsoft spent huge dollars on marketing and promotion, as well as the fact that they are losing money on every one that goes out the door. Both Apple and SanDisk are profitable. The real question is how much money they are willing to lose and whether or not they can make a device thats competitive. 8% market share based on the money they are laying out is pretty weak.
Posted at 4:16PM on Nov 30th 2006 by SR