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Why Microsoft's Zune is Still Failing
DECS writes "Last winter, RDM detailed why Microsoft's iPod Killer would fail miserably. This year, the site argues, Microsoft will fail again, but for a new set of reasons. It is not obvious that the company has figured this out itself. 'Microsoft doesn't seem to learn from its mistakes in consumer electronics very well. When it does however, it frequently gets the timing wrong. This year, Microsoft appears set to compete against the Apple of 2006. It now offers two flash models, last year's leftover 30 GB unit, and new 80 GB version. The problem is that Apple moved the goalpost dramatically. Apple's new 3G Nano is ultra thin and small, but delivers the same video resolution as Microsoft's boxy flash Zunes at the same price. It also plays games.'"
Lets see, they are selling lots of them, and slowly gaining market penetration. I don't see that as a 'failure'.
---- Booth was a patriot ----
Exhibit A: Cute, functional, the industry standard. Everyone knows what it is. Comes in gift-friendly colors. A status symbol.
Exhibit B: Volvo-esque, crippled, and ignored by accessory manufacturers. No one outside Slashdot and the Black Friday Loss Leader Bin has heard of it. Comes in brown. Also a status symbol (but of an undesirable status).
Don't try to overthink it.
Dewey, what part of this looks like authorities should be involved?
Zune shortcomings aside, just look at RoughlyDrafted's other articles. All pro-Apple. Is it a surprise that this guy claims that the Zune is a failure? Personally, the fact that Microsoft don't even try to compete outside the USA speaks volumes about their confidence at this point.
That may have more to do with the diversification of Apple's product line than anything. They have the iPod touch, iPod Classic, iPod Nano, iPod Shuffle, the iPhone, etc. Microsoft may sell more of one particular model, but I'm gonna take a wild guess that Apple is still moving a lot more iPods. Out of the top 5 slots, Apple has the next 4. Out of the top 20 media players, 13 are made by Apple.
As for whether the Zune is a failure or not, it's all relative. If the Zune had been made by a small startup, it would be hailed as a potential iPod killer. But it's made by Microsoft, the 500-pound gorilla of the digital world, a company with a lot of bright people and billions of dollars at their disposal. When one of the world's most successful corporations enters a market with all those resources behind them, anything less than runaway success is going to be seen as something of a failure. Even if they do manage to grab a large chunk of the market, the question really becomes, how much money are they spending to do it, and how much profit are they making on each Zune?