Zune HD cannot compete with iPod Touch – any hope for Microsoft to pull it back?
The Zune HD has been completely owned by the Apple iPod over the holiday season, being outsold at every turn. The question now is what Microsoft should do – settle for second best and carry on regardless, or call it a day? If it decides to persevere then what can it do to begin to compete with Apple’s behemoth?
The original Zune was a complete disaster for Microsoft. It sold in fairly good quantities, certainly when compared to other run-of-the-mill portable media players. But, if we’re honest here, there’s only one device which Microsoft is interested in competing with, and that is the Apple iPod.
The old-style iPod continues to sell well, but it’s the iPod Touch which is beating all-comers currently. Helped by the substantial press surrounding the iPhone, the iPod Touch has been a phenomenal success for Apple.
Microsoft confirmed the existence of the Zune HD in May, after months of speculation. The much-improved device was then launched in September, promising much. And the reception it received was very positive, with reviewers liking the device much more than they did the original.
Consumers also took to the device, meaning it sold out at various retailers early on. But supply soon caught up with demand, and Christmas sales must have proved somewhat disappointing for Microsoft. While Apple was topping everyone over Christmas, the Zune HD could only manage to place at 89 in Amazon’s list of bestselling electronics.
As discussed in this PC World article, the problem is that Microsoft is going to have trouble justifying the existence of the Zune HD when it cannot hope to compete with its nearest competitor, the iPod Touch. Microsoft has targeted the high-end of the market, having little choice but to do so. But who would choose a Zune HD over an iPod Touch?
Assuming Microsoft perseveres with the Zune HD, and I think it will, it clearly has to do something, and soon. The first step would surely be to open the device up to third-party developers, increasing the apps available for it at a stroke. Beyond that, I haven’t a clue how Microsoft could help the Zune HD. Starting to advertise and market it may be a start.
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December 31st, 2009
If you insert PC and Mac for iPod and Zune, it could be an article on computers from 1999, especially the last paragraph.
Maybe Microsoft should trot out comparing the Zune to an exotic sports car and we can be referring to Ballmer as Steve?
January 1st, 2010
Just got my Zune HD for Christmas, it’s exactly what I want. I didn’t want a jack of all trades, I wanted a superior movie and music device. I am in love with Zune Pass, it’s getting me back into albums. The Zune software is better than iTunes, in my opinion, but, the selection isn’t quite as good. The few apps on Zune are fine, but, I didn’t buy this for the apps. Watching Star Trek in HD on my TV is excellent. Watching anything on the screen is fabulous. Tagging songs on HD radio was something I never thought about, but, have been doing constantly.
They are both great devices, they are just for different users. Music and Movies are most important to me and I feel zune is better for both. If I wanted it for the apps, the iTouch would be the clear choice.
As for the business case, I’ll buy more movies and subscribe to the Zune Pass for music. So, for me, Microsoft has monetized the product very well and i know they’ll get more of my money than iTouch would. My PS3 will be used even less as I skip Blu-rays.
January 1st, 2010
So, iPod Nano etc outsell Sony, COWON etc mp3 players. Should the latter abolish manufacture of their players? Ever noticed how superior the Sound Quality of the latter is compared to that of the former?
January 1st, 2010
I really think that Microsoft could have done better with its Zune HD. Since the nand flash was built inside the Tegra chip, a simple firmware update will make the Zune HD able to play streaming video over its wifi. If microsoft does this, the Zune HD will be the first Mobile device to play streaming video over its work. Leaving apple’s itouch thousands of miles behind time.
January 1st, 2010
I have a Zune HD, and I love it and even my die hard Ipod friends are raving over it and can’t keep there hands off of it, but here are the draw backs to microsofts marketing for the Zune HD
1. there are no adds or booths in stores\
2. the apps, I like the games and the internet browers but Microsoft needs Sliverlight and flash support and we need a facebook app.
3. the price, the price needs to come down. compared to the touch the price is to high.
4. Microsoft lack in adds, i am sick of seeing Ipod adds, make some TV adds.
the hardware has nothing wrong with it and I it amazing, but microsoft need to market this better or it will fail…Trust me.
January 1st, 2010
I love how every article about the Zune HD is written by an Apple loving nobody. Why don’t you consider the research you worthless piece of trash? I’m sick and tired of all this “Ipod-whoring”. The Zune is built for music and thats what it does and quite well I might add. The iPod was designed to do everything else. If you’re looking for an MP3 player wouldn’t you flock to one that’s made for that purpose? Mr. Parrack, I would chose a Zune HD over and iPod touch anyday…douchebag.
January 1st, 2010
I choose my Curtis MP3 player over my iPod. I don’t own a Zune and don’t plan or need to. The $20 Curtis doesn’t need a buggy interface to load tunes onto.
Just plug the MP3 jack into the USB jack on your computer transfer tunes, and you are good to go. It only takes 1 AAA battery and the battery lasts a long time.
January 1st, 2010
I love my Zune HD! More apps would be nice, but the apps are an extra. I especially love the HD radio and tagging songs I want to get.
@Dakoda It’s cheaper then the IpOD touch
January 1st, 2010
The reason that the iPod touch sells more is because it has been around longer and people don’t want to change brands. I have had both a ipod touch and a zune hd. The touch is a lot better for apps, but for music and videos the hd is far superior. The zune software is far better too, it is so much cooler and easier to use. Of course itunes has some better things for it. Like you can convert songs on it, zune you can’t, it only converts songs for a device. So my pick is a Zune HD, but i don’t use either of them anymore. i use my smartphone (it is an lg tritan, not and iphone) so i don’t have to carry around one more thing in my pocket. So if you want a portable device just for apps, get the ipod. But if you want a device for music and videos, don’t be stupid get the Zune HD
January 1st, 2010
While I do believe the zune hd is a better device when it comes to music and video play back, I still doubt that it’ll sell better then the ipod touch.
Things Zune can do to beat them:
1.Flash and Silver Lights Support Frimware update
2.Ads that aren’t on the interent and are on TV
3.Get the best XNA developers to make Zune apps (hold contests each month and pick the best 3 or 5 to be added to the zune marketplace)
4.Make it have more functions with the PC and 360 (like a remote mode or a wii like controller for some games – hell make a trading card game)
5.Make Live cards also come bundled with Zune Passes (like pay 100 for one year of xbox live and zune pass)
6.Get More Movies and TV Shows on the Marketplace
7. Make the Zune pass also good for Movie Rentals (every month you can watch at least one movie for free)
January 1st, 2010
@SicknTired
If you had bothered to read just a little of Dave Parrack’s other articles on this site, you would have discovered that he is definitely not “Apple loving” or “iPod-whoring”. In fact, he plainly speaks his disdain of the Apple “cult” on many occasions.
If you read between the lines in the article above, you will find a note of despair that the Zune HD is not doing better than it is. What he is legitimately asking is how can Microsoft improve its marketability against the momentum of the Ipod family.
I have yet to see or hold a Zune HD, so I cannot comment on how it stacks up against an iPod touch ,of which I am mildly familiar.
But my own view is that maybe the Zune platform could evolve into a pocket computing platform, as a something of a successor to Windows Mobile.
As a medical professional, I use a HP iPaq pocket pc as a mobile reference source. I can load it up with third party documents and readers, as well as niche medical apps such as MerckMedicus, Epocrates and Diagnosaurus (all of which are available for free download for Windows Mobile). It’s also useful for limited web browsing, email, hand-held gaming, an e-book reader, and a media player – features that I have made regular and continuing use of.
It dismays me to learn that Windows Mobile is dying as a platform, as I have not seen another system that is as flexible for my needs, or has such a plethora of free software available for ready download. Apple’s anal insistence on the AppStore stops me from moving to the iPod Touch, particularly as the free medical apps mentioned above must be payed for prior to download from Apple.
So, if development stops on Windows Mobile, may be this is an opening for the Zune platform, particularly if it allows use of the legacy of pocket pc software already out there.
January 2nd, 2010
The iPod Touch is one of the most trouble-free gadgets I have ever owned. I rarely turn it off, have 110 apps installed, never locks up and install, upgrade, sync is simply so easy. For such a complicated gadget it works as it should requiring no maintenance. Remarkable. Oh, and most important, it gives enjoyment, and that is the whole point. For a general consumer device, it’s a well designed and manufactured with quality materials and construction.
Zune HD? Who cares. Microsoft doesn’t need it, they have cash cows of Windows, Office, certifications, xbox live subscriptions etc.
January 2nd, 2010
I had a first gen iPod Nano. I loved it. Two things apple does right
1) Overcharge people
2) Give you a great user interface with it’s iPods
Unfortunately my iPod dissappeared about 3 months ago.
Fortunately my sister bought me a SanDisk Sansa Fuze for christmas. I don’t hear many people talk about them but I like my Sansa. Cheaper than an iPod.. Does the same thing.. has great battery life and an FM radio built in, plus it has an expansion slot for micro SD cards.
Whats not to love about that?
January 2nd, 2010
…. Zune HD is simply a killer Media Player.
iPod, iTouch can even come close to the Zune OLED screen, the visual effects, the sound quality and that is the end of the story what is the best.
Zune HD simply is for high end users such as Ferrari vs. Toyota owners who are outside the box and undertands the differnce.
January 2nd, 2010
One thing that the Zune/iPod thing illustrates is how weak Microsoft is with marketing. The point to all the iPod ads we see is not just to sell the iPod, necessarily: it is also to make people who own an iPod already feel good about their purchase. (This is what car advertising is all about, too, incidentally.) The “I am a Mac” ads work along the same lines too.
I actually can’t recall ever having seen a Zune ad. And the “I am a PC” ads are strictly about selling computers running Windows, not about making Windows owners feel like they own a winning product. This subtle but fundamental difference in marketing is HUGE in terms of overall impression and momentum–and it’s one reason why Apple products continue to have a superior market perception, which sustains momentum.
I can’t think of a company with worse a marketing track record than Microsoft, actually.
January 3rd, 2010
If a new operating system came out in September and sold as well as the Zune HD all the bloggers out there would be talking about Microsoft’s demise yet again. Fact is, the Zune HD made the top 100 list and that is pretty good. Why is it that Microsoft has to have 90% market share with a product for you to call it a success but Apple can inch up to 5% of the OS market over the last three years and they are world beaters? The Zune HD flat out rocks as a music device. I would like to see better marketing though. I mean really, I did not see one commercial about it.
January 3rd, 2010
I just looked on Amazon and the Zune HDs are doing quite well overall and are 27th and 29th in their catagories with IPod Touch #1. Seems to me the Zune HD did pretty well for a new product. Maybe if online writers were not so misinformed and clear MS haters we would see more fact based reviews instead of knee jerk ones.
January 3rd, 2010
Yeah but the thing is the freaking quality!!! I’ve seen so many ipod touch broken and scratched. Yet my zune HD still looks like it came out of the box, even though i dropped it 5 times already. Like what Sean said up top. Zune is for the high end users, its like a Ferrari VS Toyota thing. The only reason why itouch had more sales is because it was one of the first media players to have a touch screen. In other words, its just all hype.
January 5th, 2010
hey. do u really think microsoft have to pulled it back?
are you hired by apple ? ain’t u?
dont praise apple more.
January 6th, 2010
I think that the zune hd will stay in market for a long time. It satisfies a certain kind of buyer. It is a premium device that delivers on a promise to give various kinds of high end entertainment at a whim. The Itouch has become an appliance; it is just not sexy anymore. The Zune HD is just newer/sexier, and with the zune pass it has the ability to be an amazing music center. Sorry Ipod, it isn’t anything personal… to me you have lost your match.
January 7th, 2010
They flushed the Zune down the toilet with their lackluster marketing. The Zune HD had the positive reviews from the techies, and it definately has the potential to compete with the iTouch but Zune gave up on it or never even tried. The only people that know about it is the anti-apple community and techies. I have never seen a Zune HD commercial, or any ad, other than a radio ad in the morning that never even mentioned its ability to play apps, and that ad seems to be more of an Amazon.com ad than a Zune HD ad. Old men listen to radio at 7 am, not exactly the target market for the Zune. The Zune HD is tucked away with all the other MP3 players at Best Buy and Wal Mart, while iTouch has its own display case.
January 8th, 2010
@Chris Reynolds
Well about the commercials, who knows about it, and the display case I agree, but not about the radio ads. For example I listen to a pop radio song on my Zune HD (it’s an HD) and I hear adds about the Zune HD all the time mainly about the radio of course. And this station is popular with teens in the city I live in, and my friends. And NOT ONLY OLD MEN like you said. Maybe listen to a little more radio???
January 8th, 2010
@Chris Reynolds
Well about the commercials, who knows about it, and the display case I agree, but not about the radio ads. For example I listen to a pop radio song on my Zune HD (it’s an HD Station) and I hear adds about the Zune HD all the time mainly about the radio of course. And this station is popular with teens in the city I live in, and my friends. And NOT ONLY OLD MEN like you said. Maybe listen to a little more radio???
January 8th, 2010
@Chris Reynolds
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Well about the commercials, who knows about it, and the display case I agree, but not about the radio ads. For example I listen to a pop radio song on my Zune HD (it’s an HD Station) and I hear ads about the Zune HD all the time mainly about the radio of course. And this station is popular with teens in the city I live in, and my friends. And NOT ONLY OLD MEN like you said hear it. Maybe listen to a little more radio, and not in the morning (when teens are sleeping, but at midnight when there partying and need some music
January 8th, 2010
You have yet to mention anything about what it is about the touch that makes it better than the zune HD.
January 12th, 2010
I just bought an iPod Touch. I feel I made the right choice, whew! I don’t have to join the Zune rebel defence now.