Tuesday, July 3, 2007

Microsoft declares Zune success

MICROSOFT has claimed early success for its Zune hand-held music player and entertainment device (a hard drive-based killer in the iPod category).

Microsoft’s Entertainment and Devices Division president Robbie Bach told the San Fransisco Chronicle that the company had sold 1 million Zune devices, exceeding expectations.

Mr Bach claimed sales since its launch had earned Zune a 10 per cent share of the market.

“We're still about nine months into having Zune in the marketplace. We're very pleased with the progress,” Mr Bach told the Chronicle.

“When we finish our fiscal year in June we'll have sold a little over a million Zunes. In the category we're in, the hard-disk-based category, we've got about 10 per cent market share. It's a good start. It's not an overwhelming start,” Mr Bach said.

The Zune was only at its early stages of market development and penetration, he said, with Microsoft planning investments in the product for the long term.

Though not specifically talking about the creation of a Zune phone, Mr Bach did not discount the possibility. He said the company had plans to add great social networking features to the device, particularly around the music files could be stored and used.

“As we look to the future, you're certainly going to see us continue to invest in that category. We don't enter things like that lightly,” Mr Bach said.

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