Market Share - December

re: Market Share - December

TomT — Fri, 26 Jan 2007 03:17:47 GMT

Here is NPD-December's overall numbers:

Jan. 25 (Bloomberg) -- The following tables list the top retail computer hardware sales for the month of Dec. 2006. The tables are ranked by total dollar volume and unit share in descending order.

Category: MP3

Rank Brand Unit Share

1 Apple 69.5%

2 Sandisk 11.0%

3 Microsoft 2.6%

4 Creative Labs 2.5%

5 Samsung 1.8%

Total Dollar Volume: $964,860,600

Note: figures are for retail channel sales only and do not include

direct sales, sales from Wal-Mart or warehouse clubs.

Source: The NPD Group

http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=AAPL:US&sid=a7hz3mCGq6nE#

re: Market Share - December

ZuneBoom — Tue, 23 Jan 2007 17:29:58 GMT

I love how when numbers come in that shows the Zune doing better than what the Ipod users hoped it would do, they rush in to try to fudge numbers to make it look worse. Look how they have to spin numbers and make silly assumptions in order to back up their weak points.

If you want to lump the Zune in with Every MP3 player on the market, then it will be at 2%. If you want to put it in it's category, which the ipod users DO NOT WANT, then it is much higher.

If you want to lump it in with everything, so you can wave around the lower number, then you will have to accept the fact that Macs share of the computer market is in the low single digits using that same standard.

Either they are really scared of the Zune or really hate Microsoft.

re: Market Share - December

nick — Sun, 21 Jan 2007 16:31:26 GMT

you are aware that NPD doesnt report statistics from a few places that might change these numbers namely amazon.com, apple online and apple stores.

how in gods name can you get "facts" from such a small sampling of store, and not include store which sell alot of products from your biggest competitor?

i say with those factored in zune "share" is at leats half of that number

re: Market Share - December

Andrew Clark — Sun, 21 Jan 2007 07:25:11 GMT

This market share parsing is amusing but really no more than a brave face. At this stage it would be far more of an indication of success if people were buying them as presents for others rather than themselves - a true sign of brand acceptance. Incidentally, there are several categories where in the past where Microsoft has said they have the determination to dominate only to eventually retrench and leave customers hanging - webTV anyone? Unfortunately when you have lost your shine with customers it can be hard to get it back again - just ask the IBM hardware folks. The real problem with the Zune is that it looks and feels rushed, the installation problems didn't help and neither does the bizzare simoleon-pricing scheme for downloads. I personally wouldn't buy one because there is no price advantage, the industrial design is weak and the differentiating features seem artificially crippled. I also harbor some mistrust about the company's OS firmware as every time my Magellan freezes I blame WinCE. I fact, come to think of it, the only truly successful product extension for the company for some time has been the X-Box line. Then again, if Microsoft had found itself unable to sell-in to a geek-tech user base of 14-34 year old males then that really would have been a disaster. In short, they need new and more Zune models and they need them quickly - this one is the Windows ME of music players.

re: Market Share - December

Diego — Sun, 21 Jan 2007 05:15:50 GMT

Ballmer has no idea what he's talking about.

http://www.engadget.com/2007/01/18/steve-ballmer-laughs-off-the-iphone-deems-it-most-expensive-i/

Seems like he's out of touch with what's going on out there.

BTW, the guy in that photo is your leader?

re: Market Share - December

Diego — Sun, 21 Jan 2007 02:56:01 GMT

Not only are songs crippled with added on DRM when "squirted" to someone, a large number of them can't even be shared.

http://www.zunerama.com/articles_011.php#070119_zune_story

Not only are the songs crippled with DRM when sharing them, some I can't even share with the world famous Zune wifi because Microsoft again being too weak against the music industry?

re: Market Share - December

Diego — Sun, 21 Jan 2007 01:26:54 GMT

The one million sales forecast everyone knows is just very conservative. An easier to hit target will make you at least look OK if you do manage to reach it. Nothing grand in such a gesture as saying you're gonna reach some small amount. It's just to cover your ass because you know you can't reach too many more (if you did reach those numbers). So there's nothing special when you say you are on target to reach a measly 1 million sales.

re: Market Share - December

Zune-BlackBerry Phones? — Sat, 20 Jan 2007 19:44:04 GMT

A line of Zune-BlackBerry (e.g. Pearl) phones would be way more cool than Apple's iNewton, I mean iPhone.(grin) The more details I read about the iPhone, the less impressive it sounds. In addition, a touch screen interface, with no tactile feedback, sounds like a turn off.

re: Market Share - December

Zune Development News — Sat, 20 Jan 2007 17:24:17 GMT

From the Washington Post:

"Reindorp said Microsoft was not yet ready to officially announce when it would launch the service in Europe but it could possibly be out before the end of the year.

"The industry moves in this sort of Christmas to Christmas cycle. So you can expect that there will be more devices, more features in the market at that point," he said.

"Our next round of introductions will probably be in time for the holiday of this year."

http://www.washingtonpost.com/wp-dyn/content/article/2007/01/20/AR2007012000491_pf.html

Oh well. Microsoft _should_ take their time, so the next round of releases are highly polished.

re: Market Share - December

BJ Nemeth — Sat, 20 Jan 2007 16:58:55 GMT

One more thing. While the Zune has an undetermined share of the 30 GB music player market (the 10% number sounds close), it has 0% of the flash market dominated by the Nano and the Shuffle. It also has 0% of the high-capacity market (60 GB+).

The Zune team could release an 80 GB player tomorrow. That would be easy; just swap in a bigger hard drive.

But how does a flash Zune compete with the iPod Nano? Adding WiFi capabilities will increase the size and the cost. And since it sounds like Microsoft is labeling this market as secondary music players (implying that a 30 GB player would be primary, and a flash player would be secondary for an individual), do even the hard-core Zune fans care if their "secondary" player has Zune-to-Zune sharing?

If Microsoft were to release a non-WiFi Zune, everyone would openly trash them for not supporting their own most highly-touted feature. It would be a fresh batch of anti-Zune articles in the media (bloggers and mainstream) focusing on the painful 3-by-3 rule and the fact that many of the most popular songs on the Zune Marketplace are flagged as "unshareable." (If you find anyone else with a Zune, that is.)

Finally, the Zune's entire existence seems to be as a piece of some larger "connected media" puzzle. If they start selling non-WiFi Zunes (in the Nano class), the assumption is that they would sell more of them than the more expensive 30 GB Zunes. And, over time, that would mean more than half of their Zune users wouldn't be able to take advantage of Microsoft's "connected media" strategy.

I can't envision any future for the Zune right now. I don't see how it can compete with the Nano and the Shuffle and retain it's "Zuneness" (WiFi). And while Microsoft is struggling to add integrated podcast support to it's "high-end" player, Apple publicly unveiled one of the sexiest electronic devices ever (iPhone), which has a bigger screen and *useful* WiFi capabilities. (Surf the web, or share a song for 3 plays over 3 days? Hmmm ...) Take out the phone capabilities, and you're looking at the 6th generation iPod.

Put a Zune next to an iPhone-style iPod. Let's say the Zune is cheaper by $100-$200. (Of course, Creative and others will still have cheaper 30 GB players than the Zune.) Do you think the Zune can sustain 10% of *that* market?

If the Zune team doesn't release a radically new product (not just a bigger hard drive) before the 6th generation iPod appears, I'm afraid the 2nd generation Zune will be dead on arrival.

re: Market Share - December

BJ Nemeth — Sat, 20 Jan 2007 16:37:32 GMT

I see the problem resting squarely with Ballmer. He tried to laugh off the iPhone, comparing it to the total phone market, and neglecting it's targeted premium/luxury market.

Then, without visibly changing gears, he narrows the market for the Zune as much as possible, and then inflates the numbers on top of that.

There are two possibilities. Either Ballmer is lying (which in this case makes him look petty and pathetic), or Ballmer is incompetent when it comes to public relations. Ballmer has some excellent qualities for a CEO; talking to the media is *not* one of them.

I still applaud the Microsoft team for their open blogging, and the fact that they are even participating in this conversation says volumes about their commitment to this product on a personal level. But I don't feel that commitment from the rest of the company. The big Zune announcement from CES was the fact that games were coming -- in 18 months. Is this what everyone was talking about when they described the "upgradable firmware"? What about integrated podcast support? Or videos in the Zune Marketplace?

re: Market Share - December

Diego — Sat, 20 Jan 2007 02:21:58 GMT

" 30gb devices. However, Zune is sold in more outlets than NPD reports on, so actual market share might be higher."

But, once again, you neglect to mention that NPD does not include Apple store figures, Apple Store Online, WalMart or Amazon. The first two wouldn't include many Zune sales. :)

So, acutally, market share is probably a lot smaller than what you're saying.

Steve Ballmer obviously doesn't know what he's talking about. Take in to account the other figures, such as the Apple Retail and Online stores and the number would be a lot less than your 10%.

re: Market Share - December

Goople — Fri, 19 Jan 2007 23:54:40 GMT

hardware marketshare is mumbo jumbo to me. What I will find interesting is digital store market share. iTunes Store sales vs Zune MarketPlace sales. This is what is more important to content owners.

re: Market Share - December

Dan H — Fri, 19 Jan 2007 22:28:28 GMT

Matt, Those things I mentioned are, in fact, standard and included with every mac (excepting the mac mini, which doesn't include a webcam because it doesn't have a display).

They are not add-ons.

So my point was we don't measure Mac market share the same way Microsoft is trying to measure Zune marketshare

re: Market Share - December

Matt — Fri, 19 Jan 2007 22:07:34 GMT

Thing is Dan, those are all additional products and peripherals that are attatched to the base mac. My point was that a base 30GB 250 USD Zune should be measured against the market it has entered. People who buy nano's etc. do so because they want a miniature player. Thats why they exist, the medium 30gb sectore serves some peoples needs, the miniature ones serve other needs. You can't start off with a Nano then add bits to it to make it a 30gb Video iPod.

You can't start off with a Civic and turn it into a Jag.

You can start off with a cheaper mac and add all the other bits on. You can start off with a cheap PC/Mac and continuously add bits to suit it for your needs.