Business Week: Coming Soon: A New ZuneExpectations ran low when Microsoft (MSFT) launched its Zune digital music player last holiday season. No wonder, considering the ease with which Apple's (AAPL) hugely popular iPod vanquished all rivals. As it happens, Zune was no exception. The device has sold a paltry 1.2 million units. Apple sold 21.1 million iPods during the holidays alone.
Given such overwhelming odds, you could forgive Microsoft if it simply walked away from this market. But the software giant unveiled a new batch of Zunes and some tweaks to the software that powers the device in time for the upcoming holiday season.
Um, yeah, whatever.
If you want to get a handle on the general "buzz" that surrounds the Zune, google for "Zune sucks" and see how much effort people have put into making both clever and crude photoshops that lampoon Microsoft's stillborn handheld unit.
The best one I found was this:.jpg)
Remember when I was talking earlier about this Christmas selling season being a nail biter? I wasn't implying that Zune might give iPod a run for it's money.
Wednesday, October 03, 2007
Microsoft announces new Zune players, world *yawns*
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Steve Jobs figured out long ago that he needs another angle to compete against MSFT's quasi-monopoly position in the marketplace. He has succeeded by selling technology as fashion. No one "needs" an iPod, iPhone, iEnema, etc...people want them. They are cleaver, sleek, sexy and produce great margins.
Microsoft on the other hand still operates under the "you need us" model. And since you need us, you will do it our way.
The Apple model entails greater market acceptance risk since fashion is fickle and is constantly churning. Users begrudgingly accept Microsoft products since they dominate the known world as we know it.
Push model (MSFT) vs. pull model (APPL) you decide which is winning the margin war...
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