Microsoft's Zune Tries to Preempt Apple's "Rock" Event

Hours before Apple (AAPL) is expected to update its iPod line, Microsoft (MSFT) tried -- I emphasize "tried" -- to steal its thunder by unveiling a new set of features on its rival Zune music device.

Perhaps the most important new feature involves a partnership with Clear Channel Radio (CCU) that allows Zune owners -- all 73 of them, (I kid) -- to download songs they hear on an FM tuner using a Wi-Fi connection.

"With the combination of subscription, wireless access to millions of tracks, and powerful discovery features like personal recommendations and the ability to buy music from FM radio, Zune is taking the digital music experience to the next level," Chris Stephenson, general manager of global marketing for Zune, said in a statement.

In all seriousness, Microsoft faces an uphill battle with Zune, which has yet to crack five percent market share compared to the iPod which controls over 70 percent. The company also announced two new models -- a 16GB flash version and a 120GB hard drive model.

Despite Apple's dominance in the mobile music space, Microsoft is putting up a spirited fight. Unfortunately, the company will most likely be swamped by the Jobs juggernaut.

Comments

[LongAAPL:]

It's not about the player, it's about the software.

Microsoft will never equal Apple on that account.

2008 Sep 10 06:43 AM

[geotopia:]

Although I'm starting to get used to it now, it's still feels odd to see MSFT getting bested in so many areas of technology in spite of their monopoly. I'll bet it has taken a while for the Redmond culture to grasp that the Windows/Office monopolies were not invulnerable and some divisions (Zunes, MSN, XBox, MCE) seem to resist to their detriment that they won't succeed without innovating and besting the competition. Perhaps the perfect storm that built the DOS monopoly (remember, the egg before the chicken) can't be duplicated and Bill was more a fluke than a genius!?
Anyway, the author of the article is a bit facetious with respect to the Zune's market, but it's hard to take it too seriously. I'd like to know how many Zune units have been sold in the last two years. Does anyone have that number? Want to share it? Disgruntled employees? Burned marketing partners? Retailers?

2008 Sep 10 06:45 AM

[brewer:]

Apple are taking more marketshare this quarter with OS X. Just wait until these numbers come out. Microsoft basically was given the DOS market by IBM who simply didn't believe in the PC because it would displace what was their main business--mainframes.

2008 Sep 10 10:57 AM

[mollytjm:]

great article and right on! hiring an aging comedian to talk about shoes sort of tells the whole story..that even shoe size is more interesting than Vista and Zune. there is NOTHING about the products in the ad, just two aging egos, shopping. sigh. well, that's great, because i'm long appl:)

2008 Sep 10 11:28 AM

[JHancock:]

My 15 year old daughter has never seenanyone with a Zune. Almost everyone she knows has an iPod or maybe a Sandisk but none have ever had a zune. I'm sure someone must have them, but no idea who.

As to IBM and the PC, IBM believed that they would only sell 275,000 PC's over the "5 year life" of the product. By it's official release date they already had about that many orders. Can you imagine the value of IBM's stock today had they had any sense of what they were accomplishing and had lawyers that had protected IBM's interest in dealing with Microsoft?

2008 Sep 10 07:31 PM