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For six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul

Tuesday, December 05, 2006

Zune slips from 2nd to 5th in store sales

Microsoft Corp.'s Zune device dropped to fifth place from second in the U.S. market for digital media players in its second week in stores, market researcher NPD Group Inc. said.

Zune captured 2.1 percent of the market in the week ended Nov. 25, Stephen Baker, an analyst at Port Washington, N.Y.-based NPD, said Monday. Baker said Apple Computer Inc.'s iPod remained the leader, with 39.4 percent that week, based on units sold.

Zune's market share declined as SanDisk Corp. boosted sales with a 50 percent price cut on its media players, taking a 39.3 percent share and knocking Microsoft from the No. 2 spot it occupied in its first week in the market.

Microsoft sold about the same number of units as the previous week, failing to keep pace with rising holiday sales.
Honestly, there should be no surprise there. What I'm curious about, naturally, is what Microsoft intends to do going forward. It's got a lot of ground to make up, and it's only a matter of time before the continual bad press just sinks the whole product line.
[ Posted at 2:00 PM | Permalink ]


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