Zune still on target says Microsoft

Zune still on target says Microsoft
Despite a slow start Microsoft bosses still insist that their digital player Zune will sell 1 million models by June next year. This figure is more than what Apple's iPod sold in the first six months of its release.

Zune was released on November 14, 2006 and occupied 9 percent of the market in its first week but lost 2.1 percent the very next week and sales have been sluggish since then. To add to the slow sales rate the iPods have been maintaining their numbers and improving on them. Analysts predict that by June 2007 Apple Computers will have sold about 25 million iPods.

Microsoft bosses claim to be satisfied with the numbers as they view Zune as a long term investment. They don't seem to be bothered with the weekly numbers and are looking at incremental sales. The company said that they are being very realistic about Zune and never expected to storm the market with Apple's iPod being around. The 1 million mark in 7 months will give them 10 to 15 percent of the 30 GB or higher capacity music player market which analysts say is a pretty conservative target.

Experts agree that the target is achievable but Microsoft would have to dramatically change its marketing program and introduce the right incentives and discounts to attract the consumers. Another area Microsoft would have to work on is Zune's hardware. For people to take their eyes off iPod Microsoft would have to come up with something dazzling enough. The other disadvantage it faces is that it has only one model while iPods come in a number of capacities and models. Hence it is more affordable and attractive for teens and other young people.

Analysts suggest that since more than half the world runs on Windows if Microsoft could tie Zune more closely with Windows it might get an advantage. Lot would also depend on how fast Microsoft could come up with new features and new models of the Zune.

Given the fast changing nature of the media-player market Microsoft would have to come up with innovative services and aftermarket products besides upgrading Zune with cutting edge technologies. As of now, experts believe that Microsoft's race will be with media players from Sony and Creative rather than Apple.