Zune firming up its position as #2 high-end digital player

[Zunerama Ed.]

From the Zunerama blog:



Microsoft has indicated that, based on NPD data, Zune is running second to iPod in hard drive-based player sales, and currently has 9 or 10% of the market. iPod commands the bulk of the other 90% of sales.

NPD data does not include Amazon sales information. But Amazon's data seems to validate that Zune has a secure hold on 2nd place in the market, effectively knocking down hard drive-based players from Creative, Cowon, Toshiba, Archos, and iRiver - as well as older 5G and 4G models of iPods.

We've been following Amazon's top 100 hard drive-based players (updated hourly). The above chart (click on it to see enlarged version) shows the ten highest-selling hard drive-based players on Amazon, with the Electronics sales rank for each.

Amazon's data seems to validate NPD's assertion that Zune has a secure hold on 2nd place in the high-end digital player market. In fact, all 3 of Zune's players are in the top ten. (Amazon counts the different color choices for each player separately.) At this hour, Black is ranked #4, White #8, and Brown #9.

It would be more meaningful to see Amazon's sales ranks aggregated by player model, rather than broken down by color within player. Zune's 30GB sales are divided among its three (and now, with pink, four) color choices, while iPod's 30GB sales are divided among its two color choices of black and white.

Zune is likely having an impact on high-end player sales from other (non-Apple) companies. The iPod juggernaut appears to be unfazed thus far, with its black 30GB and 80GB video models holding #1 and #2 spots, and the white 30GB in spot #3.

Whether this sales mix will change in the coming years depends on many factors - including Microsoft's release of more Zune players, features, and advertising, and the effects of Apple's upcoming release of iPhone and touchscreen iPods. For the near-term, Zune seems to be locking itself into a comfortable #2 position.

[ronaldmonster]

This is purely awesome. I'm actually starting to see more Zunes in this small town I'm in, I thought I'd never see the day when I'm sharing songs/pictures with multiple Zuners.

[Antonella]

I always believed that microsoft would take over the mp3 player market because they've taken over so many things. I don't remember anything they failed at. I think MS will be #1 eventually. Ipod is doomed and that's why the ipod users are so mad and they still vote against any positive reviews of Zune on Amazon. What MS has done so far in the mp3 market is nothing compared to what they will do. They have a lot more tricks up their sleeve, a lot of marketing power they haven't used yet, and a lot more products they will release. Goodbye ipod!

[Cochell]

superduper! its nice to see good zune news!

[A_Str8]

Zune is the iPod killer killer

[xxxoom]

it's good news, for sure. but, for now, zune has basically just canibalized what used to be its "PlayForSure" market (basically, the non-ipod market).

also, a touchscreen ipod is likely to "dazzle" consumers and make button-based mp3 players seem obsolute.  in other words, iPod is a moving target.  they won't just sit around waiting for microsoft to crush them.

i'm most encouraged by zune's new marketing campaign and the rumors of new models coming out.  if a thinner, larger hard-drive zune comes out, i'd likely sell my current zune and buy the new one.

[Smithy]

In fact, all 3 of Zune's players are in the top ten. (Amazon counts the different color choices for each player separately.) At this hour, Black is ranked #4, White #8, and Brown #9.

Add in the pink Zune which now comes in as the second ranked Zune seller, only outsold by the black Zune amongst Zune's that is, and that further consolidates the Zune as the second best selling hard drive based MP3 player, and puts 4 Zunes in the hard drive  based top 10:

LINK


For some reason, the pink Zune does not apppear on the list for hard drive based MP3 players at Amazon as at now:

LINK

Whether this sales mix will change in the coming years depends on many factors - including Microsoft's release of more Zune players, features, and advertising,

Way I see it, Microsoft is going to increase market share by:

# 1. Adding in more colours to their current hard drive based MP3 line up.  The pink is  good start. Adding in a good red coloured one, and the right kind of green, violet, etc won't be bad either. Before the pink was launched, I can't tell the number of times I have been at BestBuy/Circuitcity and tried to persuade some young lady to buy a Zune, only to be told that they wanted a pink or red MP3 player. Looking  at Amazon, just the mere addition of a pink Zune alone seems to have increased Zune sales by over 25%. Time to bring on even more colours. It doesn't cost anything to add colours, and the increase in sales is immediate.
# 2. Given that over 75% of current  MP3 player sales are the cheaper flash based models, it's imperative that Microsoft bring out their own flash based players if they want to move beyond the current 2.5% share of the overall MP3 player market. Plenty of poorer folks go to buy an MP3 player, and simply buy the cheapest one they can get, so far as the brand has a reasonbale reputation for quality. Unlike video game consoles, all MP3 players essentially play the same music, at close to the same quality.
# 3. Microsoft should spend less on all those ads (plenty of consumers already know about the Zune), and instead conserve some of that money, and use it to sell the Zune for less. When you are going against an entrenched dominant player like Apple, it's price, price, price.
Just look at how SanDisk came from nowhere and grabbed over 10% of the MP3 player market in very short order, by selling inexpensive but good quality, solid MP3 players. I don't even recall seeing any SanDisk ad on TV before. Hasn't stopped them from selling plenty of MP3 players though.

*edited to shorten link URLs - Ed.

[thenumberdevil]

Going by Smithy's posted links ... the Amazon list has some issues ...

Black #4
Brown #7, #31
White #8, #32
Pink #26

Brown and White appear twice!!

I suspect the apperance of Pink has changed how the list now looks!

[AK Water]

The Zune is starting to look strong.  Ever since those commercials started poring out, I have heard more and more talk of the Zune.  Also the other day I was walking out of Best Buy, and the two kids in front of my were holding new Zune boxes in thier hands.  Then I walked into Circuit City and a old guy was talking about the Zune with a sales rep.  Then I when I was walking out, some other people were looking at the Zune display. 

[xxxoom]

not to say "i told you so" but... remember when some of us were complaining (over and over) that what zune needed most was a good advertising campaign...


well, lo and behold, it's only been a week or two and... voila... people are talking about zune (and buying them).  let's face it... PERCEPTION MATTERS!

i feel a lot better about zune than i did a month or two ago.

[Jander]

not to say "i told you so" but... remember when some of us were complaining (over and over) that what zune needed most was a good advertising campaign...


well, lo and behold, it's only been a week or two and... voila... people are talking about zune (and buying them).  let's face it... PERCEPTION MATTERS!

i feel a lot better about zune than i did a month or two ago.

If xoom is happy, I'm happy.

[xxxoom]

 

[darkzero63]

I guess number 2 is better than nothing....

[xxxoom]

well it's better than #3... 

I guess number 2 is better than nothing....