Comments on: Time Running Out for iPod Competitors

By: Tim Acheson

Tim Acheson — Wed, 16 Feb 2011 09:39:57 +0000

What nonsense, written by somebody who clearly doesn’t understand what the Zune brand includes. (The device by the same name was just one experiment.)

We don’t even know what the plans are for Zune on Nokia. But all available evidence shows Zune is on the up. Zune is taking an increasing bite out of iTunes’ market share. Is the author unaware of the facts concerning Zune?

People love nonsensical speculation like this about MS products.

By: Neil Anderson

Neil Anderson — Mon, 13 Apr 2009 20:06:32 +0000

The thing about Apple’s iPods? A lot of people own more than one. I’ve got a mini, a classic, and two iPod touches.

By: Josh Rose

Josh Rose — Mon, 13 Apr 2009 03:16:12 +0000

Actually, if Microsoft took the same tactic with their Zune as with their general Windows ads of late (Apple products are over-priced and more about social cache) and followed up by actually dropping the prices of the models to at least $50 below iPods, then they would have a good comparison point feature-wise with a lower price-point. Back this up with standard pricing of music and shows in the Marketplace (which they have, but unfortunately it is under the “Points” system…ugh) versus the new tiered pricing within iTunes, and they have a really solid argument in this economy. I think a consistent PR message from Microsoft across their product line right now would only benefit them in the short term, and thereby also doing so in the long run.

I offer this as a Zune owner/user who loves his device and, frankly, wishes it could gain more marketshare against Apple. The typical response I get from people when I mention my Zune is a confused “What is that?”, whereas the typical response I get when someone sees my Zune is an excited, “What is THAT?!” There is certainly room here to grow, if Microsoft remains savvy about marketing the product (they have made great strides reaching Latino and African-American audiences) and stick with it.

By: John

John — Mon, 13 Apr 2009 02:33:38 +0000

Raiders757 said:
“Most teens are not smart shoppers, who do a lot research into such a product.”

I think that is not relevant. The point is that a most buyers in this category probably don’t do a lot of technical research. I’ll gladly confess that I don’t understand this kind of marketing, but it appears Apple does. Most people buying an iPod don’t check the clock rate of the CPU, the technology of the LCD or other such minutia.

By: Neil Anderson

Neil Anderson — Sun, 12 Apr 2009 21:38:15 +0000

iPod’s other features also include the iTunes Store.

By: Tom B

Tom B — Sun, 12 Apr 2009 16:16:50 +0000

It’s “game over”; even if you could mange to out-spec the iPod, you still can’t match the other features (touch screen; apps, etc).

By: Neurotic Nomad

Neurotic Nomad — Sun, 12 Apr 2009 00:09:38 +0000

@Raiders757

Yep. The dollars in Apple’s cash registers given to me by “unsmart shoppers” evaporate every evening.

By: Raiders757

Raiders757 — Sat, 11 Apr 2009 16:48:09 +0000

I don’t think time will ever run out for iPod competitors. Reason being, is that there are too many consumers who find iPods to be second rate players.

Teens are also a bad measuring stick. Most teens are not smart shoppers, who do a lot research into such a product. Most of them just want an iPod either because they don’t know anything about the competition, or they just want to be hip by owning the most marketed and well known MP3 player.

By: jbelkin

jbelkin — Sat, 11 Apr 2009 04:28:18 +0000

The Xbox Division has made quarterly profits but since its inception, it is running about $15 BILLION in the red. Basically MS would have to sell 1 BILLION XBOX Consoles to break even … MS also makes NO MONEY on the internet – as Fortune pointed out last year – the division was $700 million in the red. AOL made money last year & last quarter – but not MS on the internet. What does that tell you? Ms also makes no money with Zunes. And yet, Steve Ballmer still has a job.

By: KenC

KenC — Sat, 11 Apr 2009 02:26:10 +0000

Actually, MS first turned a profit in the EDD segment, Entertainment and Devices Division, in the late Summer of 07. However, they had a loss in the early Summer of 08, so, they haven’t ALWAYS been turning a profit since then. Here are the numbers:

9/07 = 165M
12/07 = 357M
3/08 = 89M
6/08 = (188M)
9/08 = 178M
12/08 = 151M

In other words, a relatively small operating profit, pre-tax, that hardly makes a dent in their deficit in that division, and surprisingly, doesn’t seem to be growing in profitability. I mean, wasn’t the whole point to gain market share, and then start to turn a profit once the consoles were out there and people were buying the high-margin games?

And, MS’s financials have always been a bit suspicious, since they have a cost segment, that is totally unallocated to any income centers. This division, could easily be a way for them to fudge the numbers and show individual divisions are turning a profit. How big is this cost center? Well, it loses between $1.3B to $1.5B a quarter. That’s a big number that can easily turn a Xbox division loss into a small gain. Not saying that they do, but MS’s way of accounting is a bit strange.

Not to mention that they strangely lump in MacBU and Win app development and marketing costs into Entertainment. I know they turn a profit from the MacBU, perhaps, another way to pump up the EDD numbers.