Microsoft sells one million Zune’s
Since launch, Microsoft’s Zune managed to grab 10% of the hard-disk-based category of the market, and 2.4% of the MP3 player market. Overall Zune has failed to be a real competitor to Apple’s Ipod which holds 73.7% of the MP3 player market. According to SFGate.com, Robbie Bach is somewhat pleased with the Zune’s start – “It’s a good start. It’s not an overwhelming start. I’m not going to pretend it’s some gigantic move.”
Microsoft is also busy working on the second-generation HDD-based Zune along with a new flash-based Zune which will be manufactured in Microsoft’s new China plant.
The second generation HDD-based Zune will be both smaller and lighter than the Toshiba-sourced first generation model. The new Zune will be new-from-the-ground-up with Microsoft playing a major role in the design. “There are definitely some cost efficiencies, but the more important thing from our perspective is the flexibility and control we have in creating a device from scratch and making it down to the last component what we want it to be,” said Jason Reindorp, marketing director for the Zune.