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December 4, 2006

Zune drops to 5th

Posted by David Hunter at 8:23 PM ET.

There was a ray of sunshine for Microsoft’s beleaguered Zune last week when it was reported by market research group NPD that Zune was number 2 in sales of personal media players in its first week on the market. The clouds have come out now though as the Zune was reportedly down to 5th in the next week:

Microsoft Corp.’s Zune device dropped to fifth place from second in the U.S. market for digital media players in its second week in stores, market researcher NPD Group Inc. said.

Zune captured 2.1 percent of the market in the week ended Nov. 25, said Stephen Baker, an analyst at Port Washington, New York-based NPD, in an interview today. Baker said Apple Computer Inc.’s iPod remained the leader, with 39.4 percent that week, based on units sold.

Zune’s market share declined as SanDisk Corp. boosted sales with a 50 percent price cut on its media players, taking a 39.3 percent share and knocking Microsoft from the No. 2 spot it occupied in its first week in the market.

Whew, those SanDisk guys play rough – they just missed knocking Apple out of 1st.

Creative Technology Ltd. was third, while Memorex International Inc. was fourth. Walt Disney Co. tied for fifth place with Microsoft.

If the Disney name is unfamiliar in this context, you may not realize that they make MP3 players for kids.



Filed under Apple, Argo, Coopetition, Creative, Microsoft, SanDisk, Zune

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One Response to “Zune drops to 5th”

  1. Bob Says:

    Yes, the ZUNE looks to be another MSFT rev 1 marketing disaster. But Sandisk getting more aggressive can only put pressure on Apple – which ultimately is MSFT’s goal in the first place.

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