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Thu, Jan 08, 2009 - 12:07 PM EST  —  AAPL: 91.12 (+0.11, +0.12%)  |  NASDAQ: 1593.65 (-5.41, -0.34%)

Microsoft discounts Zunes in desperate bid to increase anemic sales
Tuesday, November 18, 2008 - 05:00 PM EST

A mere two months after introducing Zunes with minor updates, Microsoft "plans to announce on Wednesday a price cut for its flash-based models. The 4GB version will drop to $99, the 8GB model will drop by $10 to $139, and the 16GB model will sell for $179, down from $199," Ina Fried reports for CNET.

"Microsoft is also cutting prices for several of its Zune accessories. The cuts take effect on Wednesday in the U.S. and on Friday in Canada," Fried reports.

"Zune marketing director Adam Sohn said in an interview on Tuesday that the moves were being made to 'ensure hopefully we have a good holiday season,'" Fried reports. "Microsoft also kicked off a new wave of TV ads on Monday that aim to get more people to download the free Zune software, even if they haven't yet decided to plunk down for a Zune player or Zune Pass subscription. 'We think we need to attack it from both sides,' Sohn said."

MacDailyNews Take: We think you're nuts and you ought to get a real job. "Zune Marketing Director," puleeze. You either have the worst marketing job this side of "Arctic Refrigerator Salesman" or your job performance is the worst in CE history (outside of the guy who was responsible for peddling Dell's long-defunct DJ Dittys) - unless your job was to create a one-word synonym for "abject failure," in which case we apologize. Job well done!

Full article here.

MacDailyNews Note: In the time it took you to read this article, Apple sold more iPods than Microsoft's all-time total Zune sales (and we're just barely kidding).


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Reader Feedback: ( = registered)

Nov 18, 08 - 05:03 pm Comment from: binarypackrat

Does anyone here know anybody who owns a Zune?

Nov 18, 08 - 05:07 pm Comment from: NCMacMan

"Let me go get my Zune."
"You have a ZUNE???"
"Just kidding, let me get my iPod."

Don't you just love Chuck?

Nov 18, 08 - 05:08 pm Comment from: ApplePi

I wish the Zune were a worthy competitor. This may prompt Apple to lower their prices. Come on... new colors and shake to shuffle are not features worthy of keeping an inflated price.

Nov 18, 08 - 05:10 pm Comment from: MikeH

Yes, my son who has been brainwashed by a stupid, supposedly tech-smart, friend. I fixed him, I sent him 400 miles awaytp college.

Nov 18, 08 - 05:11 pm Comment from: Chris K

Micro$0ft "anus", eh? LOL!

Nov 18, 08 - 05:12 pm Comment from: HMCIV

"Zune marketing director Adam Sohn said ... the moves were being made to 'ensure hopefully we have a good holiday season.'"

When your Marketing Director has trouble putting on a brave face, that's wicked bad news.

Nov 18, 08 - 05:13 pm Comment from: Richie

Nope, don't know anyone who owns a Zune. Haven't seen one anywhere besides the store. I did ask a guy at Meijers in their electronics area about the Zune, and he went on and on about how good they are, how reliable, etc. I asked him which one he had, and he told me he had an iPod. Said the Zune was a good piece, but he preferred the iPod... lol

Nov 18, 08 - 05:15 pm Comment from: HMCIV

"Microsoft also kicked off a new wave of TV ads on Monday that aim to get more people to download the free Zune software..."

Why doesn't Microsoft include Zune software with every copy of MS Windows XPista7? Oh that's right, it would compete with Windows Media Player. Zune really IS the Red-Logoed stepchild of the family.

Nov 18, 08 - 05:22 pm Comment from: Gabriel

Why does Microsoft get so much press for pretty much *anything* related to their also-ran MP3 player, while other iPod competitors which actually *matter* in the marketplace get almost no coverage at all?

Just some food for thought there.

Nov 18, 08 - 05:24 pm Comment from: Jubei

Whats scary is that they can keep undercutting the competition, losing millions of dollars practically forever. Eventually they'll wear down Apple and undercut the iPods. Apple can't afford that. It has to be profitable, they don't have that "secret sauce" that gives them guaranteed profits quarter after quarter to feed money losing stuff.

Nov 18, 08 - 05:26 pm Comment from: Passerby

HMCIV,

I noticed that 'ensure hopefully' combination, too. Granted, it's an interview and not a press release, but that 'hopefully' still shouldn't have been there. This is the man paid to exude confidence in the Zune.

Nov 18, 08 - 05:27 pm Comment from: _Bill_

I knew one guy, but he returned it and bought an iPod. Seriously.

Nov 18, 08 - 05:30 pm Comment from: Gregg Thurman

"You ... have the worst marketing job this side of "Arctic Refrigerator Salesman" "

I think he's got one of the best jobs there could be; the pay has to be awesome, he's working for MSFT for crying out loud, and if the Zune is a failure, it's not his fault.

Nov 18, 08 - 05:31 pm Comment from: clunker

First, why doesn't MS just give the things away?

Second, MS really, really needs to look at Detroit, and witness the endgame of perpetual price-cuts and money-losing product.

Today, GM. Tomorrow, MS.

Nov 18, 08 - 05:39 pm Comment from: jarrettdailynews

my brother owns a zine. I love his moronic take," the zine has a click wheel too" I apologize for his ignorance.

Nov 18, 08 - 05:41 pm Comment from: January 24, 1984

Never seen one.

Nov 18, 08 - 05:47 pm Comment from: Peruchito

i have seen a few Zens (3 in the last year. and i live in downtown toronto). does that count?

Nov 18, 08 - 05:48 pm Comment from: math geek

I love how the reversed zune logo looks like "anus"

Nov 18, 08 - 05:54 pm Comment from: MacGeniusIQ160

There can be only one.

iPod.

Nov 18, 08 - 06:00 pm Comment from: jjjj

The price of a turd just got cheaper.

Nov 18, 08 - 06:01 pm Comment from: jjjj

@Peruchito

Canada? No, that DOESN'T count. wink

Nov 18, 08 - 06:02 pm Comment from: Dirty Pierre le Punk

They actually do sell refrigerators in the Arctic. The eskimos use them to stop food that needs to be stored getting too cold and hard and so being damaged.

Nov 18, 08 - 06:04 pm Comment from: Mr. Peabody

I don't know... I might get one if they start giving them away, but I'll still use my iPod Touch smile

Nov 18, 08 - 06:09 pm Comment from: cheapskatedave

I love this quote: "the moves were being made to 'ensure hopefully we have a good holiday season'"

ENSURE... hopefully. Wow, sounds promising.

Nov 18, 08 - 06:19 pm Comment from: Mr. Peabody

Now when they start using the combination of words in question when referring to the entire corporation - Then there will be dancing in the streets - at least by me... Depending on how cold it is and stuff.

Nov 18, 08 - 06:26 pm Comment from: Mr. Reeee

I've seen a couple on the subway.
A cute girl had a pink one.
A guy had one and gave me a dirty look when I snickered at it.

So much for market share.

Nov 18, 08 - 06:35 pm Comment from: jbrownetal

i think I saw Sasquatch once... still haven't seen a Zune yet, though.

Nov 18, 08 - 07:10 pm Comment from: macerroneous

A guy showed up at my beach house with one. It's not bad. Nevertheless, I was about to trash him mercilessly. But, when I found out it was an anniversary gift from his wife (who was in the room), I had to bite my tongue.

Nov 18, 08 - 07:12 pm Comment from: mike k.

given that Apple is blowing away all the competition, shouldn't MDN be comparing Zune sales to those of the other MP3 players out there (Toshiba, Sandisk etc.)? I see no evidence to support the claim that Zune sales are anaemic relative to their targeted competition (although i'm inclined to believe it since i have never seen a Zune in the wild either).

Not being number one in the marketplace doesn't necessarily mean you're not making a successful product.

Nov 18, 08 - 07:20 pm Comment from: DH

" Not being number one in the marketplace doesn't necessarily mean you're not making a successful product. " Seriously ???

This statement sounds like an apology their marketing mgr uses when his boss asks " why did we sell so few units ? ".

I dare MS to release their unit sales figures for the Zune. It would be an embarassment.

Nov 18, 08 - 07:32 pm Comment from: Missy Pants

Discounted Zune?!
They've got a deal!

If by "discount", Microsoft means, "Please haul away this Zune, and here's twenty dollars for your trouble."

Nov 18, 08 - 08:05 pm Comment from: ken1w

If the price gets low enough, I'll buy one to take out the hard drive and put it into a little external USB case.

Nov 18, 08 - 08:06 pm Comment from: aaplsaur

A neighbor of mine bought a Zune for his daughter. It broke after a few months.

Nov 18, 08 - 08:18 pm Comment from: DAVID

HEY!!!!!!!!!!

Do not kill the messenger. I thought the ads for zunes were decent. Its not his fault the product can't compete with the iPod!

Nov 18, 08 - 08:20 pm Comment from: Zune Tang®

Fantastic news! The world's best media player is now easier to acquire—and just in time for the holiday season! I already projected Zunes to out sell dumpy I-Pods 10 to 1, but Microsoft's generous price cuts lead me to up Zune's trouncing of flash-in-the-pan I-Pods to 20 to 1.

This will be a huge draw for electronics retailers and a boon for the economy. Thank you, Microsoft, and congratulations. This season's Tickle Me Elmo is the wildly popular Zune.

I'm a PC.

Your potential. Our passion.™

Nov 18, 08 - 08:48 pm Comment from: Phunkadelique

This mirrors the demise of the PC jr. Holiday discounts to save face on sales. Killed by spring.

Nov 18, 08 - 09:14 pm Comment from: Hm...

I know a couple of students who have Zunes.

Their friends are planning an intervention...

Nov 18, 08 - 09:23 pm Comment from: Greg L

I don’t own an Anuz

Nov 18, 08 - 09:37 pm Comment from: jarrettdailynews

Damn iPod/iPhone error correction for the keyboard! :(

Nov 18, 08 - 11:42 pm Comment from: derekcurrie

Damn! These price cuts are DESPERATE! I remember the dumping they did last Christmas season. It was nothing like this.

I am going to hazard a guess that we are about to see the last of the anuz. CLEARANCE!

anuz!
My laugh of the day MDN!
There is was all the time,
right in front of our eyes!
BWAHAHAHAHA!
wink

Nov 18, 08 - 11:47 pm Comment from: derekcurrie

clunker sez: "Today, GM. Tomorrow, MS."

OMG. You'll give me nightmares tonight.

Imagine the dimwit government bailing out Microsoft, inadvertently extending the length of The Dark Age Of Computing. Just bite my neck, suck my blood and get it over with.

Nov 19, 08 - 01:28 am Comment from: Raymond in DC

Zubei, Apple is sitting on a cash pile bigger than Microsoft's. It can easily sustain anything Microsoft throws at it. And, BTW, all of Apple's products make a profit. Microsoft can't say that.

Nov 19, 08 - 01:51 am Comment from: Ralf

I do have a Zune, bought it from woot.com as they had refurbished for 60 US$ or so. 30GB Version 1.

I use it in my car (Middle East so damn hot in the summer) to keep my iPod Classic from being grilled.

so far the zune is actually not too bad, wouldn't buy it full prize though.

Wifes comment on the Zune: Geeez, it's ugly and boxy.

As I said before, the zune is actually not that bad.

Best,
Ralf

Nov 19, 08 - 04:57 am Comment from: marcus

My mate here in France brought one on the interweb thingy from Ebay. I laughed so hard I almost wet myself......He is now very embarrassed about it. More so than me almost wetting myself.

Nov 19, 08 - 06:50 am Comment from: hagar57

The Zune accessories market is expanding. Home Depot announced a Zune compatible depository, made from white porcellain, with a bi-partite lid, and built-in water cooling. It fits all Zune models currently on the market.

Nov 19, 08 - 08:15 am Comment from: Hypocrite

Imagine a company having to continually slash prices to keep a product selling. Apple would never do that. Especially not with a flagship product like the iPhone.

Nov 19, 08 - 09:28 am Comment from: Buster

A friend of mine's son bought one. When I asked why he said he just wanted an mp3 player and that since he was a poor college student, it was cheap. He wasn't bragging about any features.

I suppose that is ok. Something that plays music and cheap. The value in that is that Apple doesn't appear to be a monopoly, smaller companies can make a few bucks feeding around the fringe and few college students can listen to tunes on a WalMart quality music player.

Nov 19, 08 - 10:23 am Comment from: shen

"And, BTW, all of Apple's products make a profit. Microsoft can't say that."

last i checked out of hundreds of MS products only two made a profit....

how much do you have to over charge on 2 products to support the kind of failure the rest of MS has? a lot.

mention that next time someone talks about how expensive Macs are.

Nov 19, 08 - 10:44 am Comment from: Jamie

I just love the way Zune spelt backwards says anus.

Brilliant Micro$oft, brilliant.

Nov 19, 08 - 10:55 am Comment from: @ mike k

Creative and Samsung between them have about 25% of the market.

Apple has about 72%.

Can you guess how well Microsoft is doing? You moron.

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