Microsoft says Zune sales in line with their expectations

“Microsoft Corp. said initial sales of its Zune music player are in line with the company’s expectations amid reports of waning interest in the device that competes with Apple Computer Inc.’s iPod,” Dina Bass reports for Bloomberg News.

“Initial sales ‘indicate we are on track to meet our internal business projections,’ Zune Director Jason Reindorp said in an e-mailed statement. Microsoft has refused to disclose sales or projections,” Bass reports. “But a survey by Piper Jaffray & Cos. analyst Eugene Munster shows few retailers are recommending the device.”

Bass reports, “iPod, which has a 75 percent share of U.S. retail sales for such devices, is garnering more recommendations than a year ago, said Munster. Clerks recommended the iPod 75 percent of the time in the most recent survey, compared with 68 percent a year ago. Some clerks who spoke to Munster said they hadn’t even heard of the Zune even though the device was available at their stores.”

Full article here.
Microsoft certainly must have had low expectations. It looks more and more to us like the whole Zune fiasco was intended mainly to throw a monkey wrench into Apple’s next negotiations with the music labels than to be a viable product/service. If so, Microsoft is treating the few Zune customers they do have as pawns; that’s a pity, but it’s hardly surprising. Giving Universal Music a cut of device profits is a bad deal to which we don’t expect Steve Jobs to capitulate.

Related articles:
Universal CEO Morris wants iPod royalty fee from Apple – November 28, 2006
Microsoft’s Zune selling like snotcakes – November 15, 2006
Universal Music Group CEO calls iPod users thieves – November 11, 2006
Following Zune deal, Universal expected to demand iPod royalties from Apple – November 10, 2006
Microsoft to pay Universal for every Zune sold – November 09, 2006

58 Comments

  1. Fantastic news! The overwhelming market response and now Microsoft’s statement that Zune sales are skyrocketing prove that Redmond has another winner!

    Q: How many did Microsoft expect to sell?
    A: Way more Zunes than your ugly, hard to operate, copycat iPods. ‘Nuff said.

    Eat crow iPod lemmings! Not so smug now, are you? It’s a Zune world now I am feeling pretty good about being part of the social. Maybe I’ll squirt you a picture of me enjoying the FM radio on my Zune—oh wait, you can’t squirt. Suckers. How does it feel being part of the antisocial?

    Microsoft proves once again that quality, good design and an excellent interface trumps rushing a clearly unfinished product to market with crappy software and features few people are interested in. Better luck next time Apple, and try not to copy Microsoft when you do try next time. Your historic lack of inspiration and innovation is laughable.

    Welcome to the Social.

  2. Man, get out of crack already!

    Nov 28, 2006 14:46:00 (ET)

    NEW YORK (Dow Jones)–Microsoft Corp. (MSFT) is “very happy” with the consumer response and sales to its new Zune digital media device.

    “All signs indicate that we are on track to meet our internal business projections, and we’re confident that Zune will only continue to gain traction and momentum through the holiday season and beyond,” Jason Reindorp, director of Zune at Microsoft, said in an email.

    Some early signs have indicated that the Zune device has yet to break through to the top of many shoppers’ list.

    On Amazon.com Inc.’s (AMZN) Cyber Monday top seller’s list, the highest ranking Zune was the black version at No. 76. Meanwhile the market-leading iPod from Apple Computer Inc. (AAPL) placed six of the devices in the top 10 list.

    On Tuesday’s list, the 30-gigabyte iPod comparable to the Zune was the No. 1 seller. Meanwhile, the highest-ranking Zune was the black version, listed at 92.

    – Carmen Fleetwood, Dow Jones Newswires; 201-938-5216

    (END) Dow Jones Newswires

    November 28, 2006 13:40 ET (18:40 GMT)

  3. what a joke !

    One month after launch and they have to respond to inquiries about poor sales (terrible Amazon stats, no response to Best Buy or Kmart kiosks, etc).

    I’m sure they were expecting more of a “buzz” with xbox like sales and reports of product shortages.

    Zune the HOT Christmas gift…….not.

    but it’s Crackalakin ???

    (( oh, i forgot …. this is only version 1.0 and Microsoft allways gets it right by 3.0 ))

    LOL

  4. “,,,sales of its Zune music player are in line with the company’s expectations”

    But

    “Microsoft has refused to disclose sales or projections”

    What is the name of that sone…?

    There is music in the air
    But I smell BS everywhere…
    So gimme the night.

  5. Nice to see that those who don’t want/like ipods are buying Creative and Sandisk players. And really really entertaining to see MS spend 100s of millions trying to act cool.

    Choice and competiton are good things, but the only criticism of the ipod that Zune seems to address is that it doesn’t scratch as easily. But even on that front, I notice that the 1st generation (and very scratchable) nanos are still doing well on amazon, so perhaps not such a big deal.

    “Just like an ipod except not as good… and five years late.” Seriously.

  6. All signs indicate that we are on track to meet our internal business projections

    Quick, some of you MS lackey rush to Redmond and warn them that they are looking the charts upside-down!

    Or else, MS is definitely run by idiots. They finally reached their customers IQs.

  7. In other news, Gill Bates will be heading to Pyongyang for talks on global warming bearing small parcels of hard foods (rejected by American consumers) for the starving children of North Korea, purely as a christian, humanitarian gesture, and to show the Kims that Republicans are not all hard-assed. The visit comes on the heels of Bush’s refusal to send Rice over for talks.

  8. Yeah….

    And what ever happened to “Origami” or whatever that huge new thing from Microsoft was called ?

    Boy they built that up huge … and let die pretty quickly.

    Oh I forgot, Microsoft has billions of dollars and huge market share and they win anywhere they want.

    Why isn’t it obvious that Microsoft is this generation’s IBM ?

    So ripe for implosion !

  9. If I was a Microsoft Shareholder….

    I think I would want presence at the next AGM to ask…. Exactly how many Zunes did you intend to sell, given all the investment made in product design ($10) and product marketing ($10,000,000).

    The company executive are put in place by shareholders to deliver shareholder value by investing in and marketing products effectively.

    So Ballmer…. Whats your plan?

  10. Has to make you wonder though if this design was just design to get something out there until the proper device is designed and developed.

    Despite how bad the whole zune thing is, a lot of people are talking about it – there is no such thing as bad publicity.

  11. I imagine that M$ only expected to sell 100K units in the first quarter. The question is whether they can increase their sales to 1M in successive quarters.

    Funnily enough, I believe Apple sold 150K of the original iPods in their first quarter of release. However the market was very new then and it was only available to mac users.

  12. “met sales expectations”

    A couple of dumb asses actually forked over money to own a Zune (although after spending a week trying to get the software to work, they returned them).

    All the rest were given away for review and because it was soooo embarassing to have a giant pile of stock with no demand.

    MW: squirt

  13. Actually, this is Microsoft as we all know them. They roll out a copycat product that sucks and then figure out ways to strongarm people into using it. Over the years the product starts to suck a little less until its complexity catches up with it and it really sucks. Guys, all M$ knows how to market is Windows, and that’s what they’re attempting to replicate here. It’s so obvious and so sad. It won’t work this time because the Microsoft name isn’t the magic it once was (if it ever was); people aren’t going to hang around in the endlessly vain hope that they’ll get it right “this time”.

  14. when you intentionally put out shit. You expect to move a miniscule number of units and have the sales force ignore it.

    I suspect the MS knew this first iteration is a piece of crap, but realized that no matter when they first put one out, they would have awful sales. Why not just put out whatever crappy device with crappy marketplace with crappy install issues with crappy media software? Well, the last two are standard MS practice in whatever version. This way, when they actually put out a useable service with an average device, it will seem like a huge improvement. They took the chance that this will outweigh the negative press they are getting now. Let the users take the bruises from mulitple install attempts to help debug the thing. As goofy as the hardware is, the user interface and marketplace are the real killers here in most reviews. That is what they need to improve to compete with the Zen, etc.

    They are in this for the long haul. How long has xbox (which was much much better in its device category than Zune) been out?

  15. On a related note, Microsoft expects Steve Ballmer to sweat profusely and throw chairs.

    By the way, it’s been a while since I’ve seen a picture with Rob Glaser holding two Crispy Cremes. What’s up with that, MDN?

  16. Hmmmm, As of 11-29-06 11:30 am

    The Black Zune is listed as — 63rd on the popularity list at Amazon.com. I guess its slipping fast. Apples iPod battery brick is more popular. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    We should monitor this, but I am surprised. I did not expect Zune to be this high. LOL

    N.

  17. OK, oppps, wrote reply then read above messages. 🙁

    But Amazon says it updates hourly so numbers may bounce up and down. However, there were tons of iPods — all above the Zune. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    N.

  18. RE: Zune Tang

    “Fantastic news! The overwhelming market response and now Microsoft’s statement that Zune sales are skyrocketing prove that Redmond has another winner!

    Q: How many did Microsoft expect to sell?
    A: Way more Zunes than your ugly, hard to operate, copycat iPods. ‘Nuff said.

    Eat crow iPod lemmings! Not so smug now, are you? It’s a Zune world now I am feeling pretty good about being part of the social. Maybe I’ll squirt you a picture of me enjoying the FM radio on my Zune—oh wait, you can’t squirt. Suckers. How does it feel being part of the antisocial?

    Microsoft proves once again that quality, good design and an excellent interface trumps rushing a clearly unfinished product to market with crappy software and features few people are interested in. Better luck next time Apple, and try not to copy Microsoft when you do try next time. Your historic lack of inspiration and innovation is laughable.

    Welcome to the Social.”

    You are such a bloody loser, and you have to be joking about your statements. Only a fucking moron would say the shit you are squirting out. Get it? Squirt? LOL

    I bought my first iPod nano (red) recently – also got one for my wife. The click-wheel interface is the best I have seen and blows away anything the so-called competition could ever come up with.

    My wife and I were at Sears on Friday and saw the shit-brown Zune they have on display. We walked away laughing our asses off. What a turd for MS ‘tards! Microsoft sure created a real winner. ROTFLMAO!

  19. Microsoft’s “internal business projections” were for Zune to be 76th on Amazon’s electronics rankings? That’s a pathetic bit of spin…

    Considering there are really only two Zune models (I’m assuming very few Zune customers picked brown), that’s even more pathetic. On the Apple side, there are more than a dozen different iPod models (probably more than 20 if you count the previous generation iPods still being sold as new). All those iPods models (and configs) are competing in the rankings again only two (or three counting brown) Zune choices. And the best Zune can do is 76th, with Apple holding six of the top ten spots. At least SanDisk is up there in a respectable spot. Too bad Microsoft screwed up a viable future for non-iPod media players with the PlaysForSure fiasco.

  20. Connor MacBook:

    Zune Tang was never funny. Quirky, sure. Odd, oh, yeah. Monotonous, absolutely. Peculiar, why not? Nonetheless, Tang epitomizes everything about Zune that Tang allegedly detests. Zune Tang is a freak of nature with limited capabilities who makes no apology for his limitations and deficiencies.

  21. Connor MacBook:
    “Zune Tang isn’t even funny anymore.”

    I think of trolls as sort of like Ace pilots. When a pilot downs an enemy or blows up his target he puts a “stamp” on the side of his plane marking the event. Forum trolls likewise do something similar. Every post about them following their post is a “stamp” on their plane.

    You’ve been shot down Connor, and are now a “stamp” on the side of Zune Tang’s plane.

    For that matter I am too… >_>

  22. Q. What is the difference between a Zune and an iPod?
    A. A squirt and a gush.

    Now here is a good one, courtesy of Zune Tang.
    A: Way more Zunes than your ugly, hard to operate, copycat iPods. ‘Nuff said.

    Actually not enough, since Zune Tang is all about revisionist history.

    Hmmm copycat iPods, wow the Zune has been out a week and already Zune Tang points out that iPods are copycats.

    Certainly not enough has been said on this topic and I am sure that Zune Tang can elucidate on the many features that the copycat iPod has incorporated from the Zune since it’s release last week.

    Sure beats waiting for the “wait a year then you will see…”

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