Heavily Discounted Zune Outpacing iPod Sales

firegate writes "Yahoo Tech is reporting that the Microsoft Zune, having been heavily discounted for the holiday season, 'is currently Amazon's top-selling music player, beating out the new iPod Nano and the 80GB iPod on the 'Bestsellers in Electronics' list.' An Associated Press report even indicates that the Zune's newfound popularity has left it in short supply, sold out in many locations. Is this a sign that a true competitor, from Microsoft no less, has finally broken into the Apple-dominated MP3 player market? And will this spell more success for Windows-media based music subscription services like Napster?"

Comments

Will it still sell when the price goes back up?

[loftwyr]

Will Microsoft be able to sell it through another outlet? What will be done with all the Generation One Zunes still on shelves? What percentage of these Gen 2 Zunes are being purchased by hapless parents who will see them returned by ungrateful children?

For the answer to this and many more questions, wait for December 26!

Old Saying

[Spazmania]

There's an old salesman's saying:

It takes no particular talent to sell a dollar for fifty cents.

Amazon Sales Rank == tea leaves

[bbzzdd]

Amazon Sales Rank in no way represents reality. Just last week many members the HD-DVD rah-rah camp prematurely declared victory for software sales based on Amazon rankings showing HD-DVD titles outselling Blu-Ray by a large margin. In reality Nielsen VideoScan came back to show Blu-Ray taking the week 73:27.

For the entire month of July the PS3 was in the top three of the Video Game category at Amazon, seemingly outselling even the Wii most of the month. The Xbox 360 was barely in the top 20 for the month. When the smoke cleared the Wii outsold the PS3 by over 300% and the 360 beat it by 11k units.

Amazon Sales Rank is useless for comparing product sales.

Microsoft selling at a loss

[Locutus]

I wonder how many billions Microsoft plans to lose on this turkey? Billions lost over the life span of WindowsCE has purchased them a strong hold of the PDA market but is giving them problems in the SmartPhone market with Nokia's Symbian and Linux stalling that effort.

Anyways, it isn't a surprise that Microsoft is dumping billions into this product and suckers are picking it up. It's not like they don't have the cash to dump on this and we all know there are millions of suckers willing to pick up a Microsoft product because it's cheap.

The only thing of interest here is how many billions Microsoft is willing to lose to gain market share against Apple. They've crossed over the $10 billion mark to kill Palm about 4 years ago. But it's a laugh when the press talks about WinCE, PocketPC, Windows Moble, etc being a good product line for Microsoft. So if you're a MSFT investor, Zune will be a massive loser too. IMO.

LoB

Re:The Zune-for-Christmas Death Plot

[Joe Jay Bee]

What a nasty world we live in where a kid will go into a sulk because they only got a "wrongly" branded $100+ MP3 player on Christmas morning.