Zune Selling Less Than 50,000 Units Per Month
Well, as far as it’s possible to tell, Zune sales have settled down to a level of less than 50,000 units per month.  I think “failure” is the only word to describe this level of performance.  Even by Microsoft’s own rather narrow definition of success - selling a million units by June 2007 - Zune looks to have failed.
Back in October 2006, before Zune was released, I posted my Top Five Reasons why the Microsoft MP3 player would fail.  Towards the end of November, a couple of weeks after launch, the early signs indicated that Zune was failing in the market (see, The Zune Sales Trend Disaster). Today, a few months in to the product’s life, these new numbers appear to indicate, beyond reasonable doubt, that I was right.
So, what next for the Zune brand? Microsoft really needs to get a totally new Zune device on the market during (or even before) the fourth calendar quarter of 2007.  And this time, it needs to be a device that doesn’t suffer from the above (and other) fatal flaws. Of course, given that the Zune team didn’t (and perhaps still don’t) appear to realise that the current device is fatally flawed, you have to wonder if they can deliver…
Gene wrote:
Funny how we’ve gone from Michael Robertson’s prediction that Zune won’t sell more than 50K units - in total…ever -, to now calling Zune a flop because it’s ‘believed to be selling’ 50K units per month.
What everyone seem so miss on this one is that Zune is Microsoft’s new untethered platform, which will soon be moving way beyond listening to music and watching videos. Once the second (or third, or fourth) generation device does all the things I mention on my blog, AAPL is going to have plenty to worry about.
Gene from ZuneChannel.com
Posted 21 Mar 2007 at 1:35 pm ¶
Asam Bashir wrote:
I see the Zune users are squirting themselves silly, even defying gravity and standing on no legs ha-ha….
Posted 21 Mar 2007 at 2:41 pm ¶
simon wrote:
LOL! Asam.
Gene, I can see that you think Zune has been a great success.
However, do you agree that 50,000 units per month would be a failure… by Microsoft’s own definition of success? And I bet MS thought they were setting themselves an easy objective saying that Zune would average c. 85,000 units a month. Compare to Apple with their new iPhone, where their target is ten times that number (much more challenging)
Re: the second, third, and fourth generation devices… well, let’s judge those as they arrive. I’ve been talking only about Zune 1. Zune 1 has failed. Zune 2 may do better.
About, “everyone seems to miss what Zune is”… Yes, I agree. They do miss that. That was one of my Top Five Reasons Why Zune Will Fail predictions i.e. that Microsoft wouldn’t be able to communicate what Zune is.
Posted 21 Mar 2007 at 6:51 pm ¶