If anything was evidence that Apple’s iPod is ready to be the de-facto digital music device, the latest survey of teens by financial research firm Piper Jaffray should be it. Of the 606 teens surveyed (54 percent male, 46 percent female), those planning to buy a player all responded they were considering Apple’s iconic device.
About one out of every five teens are planning to buy a new music player in the next 12 months, down from 34 percent in the fall survey. Of that group, 100% say an iPod.
For whatever reason, Zune’s share has collapsed — probably due to the fact the players have gone without any update for quite awhile. In the fall, 15 percent said they were considering a Zune. If this is true, Microsoft may find itself being forced out of the digital music player market as the youth is what drives this industry.
There really isn’t much untapped potential here either: 92 percent of teens own a player, up from 87 percent in the last survey. So even if this is exaggerated, the growth potential is slipping away for Microsoft — I’ve often heard them argue about the untapped market as its salvation.
I just can’t see with the increasing amount of negative data for Zune how it is worthwhile for the company to stay in the market. We are hearing that the wagons are circling in Redmond and talks are ongoing with partners on the next Zune model, which should come out in the fall if what we are hearing is correct.
However, will it even be worth it?