Can Microsoft’s Zune HD challenge the iPod?
Written by Conrad Beickler (contact - e-mail) -- October 16th, 2009 |
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Hopes were high when Microsoft introduced the Zune in 2006. As the first MP3 player to feature Wifi and an FM radio, the Zune stood out by allowing owners to share music wirelessly with other Zuners. The concept never took off; Zune adoption was limited, while Apple’s iPod line continued to dominate the media player space.
In late September Microsoft launched its new Zune HD media player. Rather than simply upgrade and refine the original Zune concept, Microsoft seemingly followed the lead of the iPod Touch, building the device around a 3.3 inch touchscreen, internet browsing capability and games/application downloads via the Zune Marketplace. Apple made a series of announcements in the week prior to the Zune’s launch, including improvements to iTunes, the iPod Touch and iPod Nano, providing me with an opportunity to compare consumer interest in the two media player brands.
Had the Zune gained any traction against the iPod or had Apple’s announcements of the prior week tempered enthusiasm for the Zune HD launch? To further explore this I looked at Compete’s data to see how interest shown by online consumers in the Zune HD during its launch week compared to that of the iPod Nano and iPod Touch in the weeks surrounding their recent upgrades.
- The addition of a video camera to the iPod Nano resulted in a 700% week over week lift in traffic to Nano specific pages at apple.com during launch week
- Traffic to Zune.net, on the other hand, only saw a comparatively modest 90% week to week increase when the Zune HD launched
- What’s far more damaging to the Zune HD’s prospects is that the iPod Touch, which hasn’t changed drastically since its redesign in September 2008, drew virtually identical levels of interest from online consumers as the entire Zune.net site during the first two weeks immediately following the Zune HD launch
Whether a result of Apple overshadowing the Zune HD’s launch, or the lack of a differentiating feature, consumer interest in the Zune HD has been lukewarm. With Microsoft’s decision to discontinue all other Zune products that competed with the iPod Nano and iPod Classic, the Zune HD remains as the company’s only bid to compete with Apple. If early interest is any indication, the Zune HD could have a tough time grabbing a significant part of the market.
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October 17th, 2009 at 2:07 pm
But wait… Zune has, what, 2% of the market? And yet their unique visitors on week of release are equal to that of the Touch, which is part of a line that has 70-something percent share.
I understand that we’re talking about “only” the touch vs all of zune.net, but still, Touch is the flagship behind the iPhone, and according to your numbers the Zune has very comparable interest overall. If Daewoo released a new car, and it showed similar interest levels as a new Toyota, I don’t think you’d call that lukewarm.
October 17th, 2009 at 11:20 pm
How many people bought a Zune? How many people bought a Zune HD? Who cares how many people might have looked at it if they end up buying an iPod? Anyone who was burned by “Plays For Sure” will think at least twice before paying Microsoft to get screwed for sure.
October 18th, 2009 at 12:05 am
Nikolai how many people would put their money down for a Daewoo over a Toyota anyway?
October 18th, 2009 at 1:02 am
I think MS’ strategy was all the wood behind one arrow…..but but the results have been pretty dismal. If you check out Amazon’s best sellers list of MP3 players and accessories Zune has dropped steadily. Currently it is at 26 and 40 on the list and that is it in the top 50. Sandisk has 3 models holding positions (10, 13, and 25) ahead of the first Zune.
October 19th, 2009 at 11:26 am
“how many people would put their money down for a Daewoo over a Toyota anyway?”
Good point. I Agree. :)
The Zune is a joke. May people uses windows because their first contact with a computer was in their workplace. They didn’t make a choice. Most of the people that thing Windows is a wonder have never used another OS. So the real windows fanboys (people in love with microsoft and buy their products no mater how bad are those) are really a very small group
With the MP3 competition (actually, the iPod is more an ACC player that also plays MP3) people did have a choice over several brands, and thy pick up the Ipod.
October 20th, 2009 at 12:02 pm
The Zune is far from a joke, except in sales and profits. Almost every review, especially from actual users, is favorable – even leading the iPod on Amazon. Yet as evidenced by the sales on Amazon’s bestseller page, the HD must be a disappointment to MS.
October 29th, 2009 at 5:08 pm
I cant believe people actually follow this crazy stuff. People actually taking sides as though they will see the profit themselves. Grow up. As far as the Zune vs iPod debate, if it suites your needs then buy it. No need to be a Groupie!!!!!!!!!!!