Analyst: Microsoft Should Abandon Zune
IDC analyst Susan Kevorkian recently told Market Watch that Microsoft should abandon Zune altogether and focus the company's attention on the high-growth smartphone sector. The comment is derived from a general consensus by analysts that Microsoft's portable media player missed its mark, and doesn't look to gain any ground in its battle against Apple's iPhone and iPod Touch anytime soon.
"If Zune were going to make a strong move against the iPod, it already would have," Kevorkian said.
According to Microsoft's quarterly earnings report last week, revenue for the non-gaming side of Microsoft's Entertainment and Devices unit fell 42-percent to roughly $211 million for the fourth fiscal quarter ended in June. In comparison, Apple experienced a decline in the same time period as well, with a 11-percent decline in sales that estimated 1.5 billion.
However, despite recent numbers, Microsoft is betting on the September release of its upcoming Zune HD that utilizes Nvidia's Tegra CPU, allowing the portable media player to present 720p video. George Kurian, a vice president at Tradition Capital Management LLC, which owns Microsoft shares, doesn't seem too optimistic.
"The market reception for Zune is so disappointing that many retailers have even stopped selling it altogether," he said.
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I wanna get one and hook it up to some HD i-Glasses
Are they the same analysts who suggested that Microsoft should abandon the XBox a few years back?
Hippies!
I would not be surprised if zune ceased to exist. I own one but I'm not happy with it. The software itself takes up alot of memory that can be used for something else.
And we all should be Ipod fanboys right. I love my Zune, I own three, soon to be four this fall. I owned a Ipod and hated it.
I still don't understand why people buy iPod in the first place. I am amazed how young college students here in the US get a lot of those at the expense of more than a good CPU. Really, what's the point? Why is there necessity to listen to music while doing anything? And what's the point of watching movies at a screen the size of your palm?
Apple's success can't be duplicated and none other can recreate the hype. M$ should have realized it long time ago. They are simply not a hype company, and can't sell things with hype. They should sell the Zune brand to Logitech or Creative, and focus on inter-operable OS for smartphone/touch-MP3 player. They've gotten the chance to dominate the market 5 years ago, and they blew it. Now they have to face competition from all sides. They should shutdown plan for M$ Stores and hire the ShamWow guy instead.
Actually when the zune hd is released I plan on getting one (depending on prices) either when it is released or around christmas. Also I refuse to use an ipod becuase I hate itunes, and various other gribes about it.
I would think about a ZUNE HD Phone. maybe.
The only reason I haven't purchased my own smartphone is for something that plays media even better comes along. PSP isn't good enough PSP go is too late, phones come with heavy monthly fees, and apples products are overpriced. Right now the Zune HD is at the top of my list.
To me the only reason that the zune came out is because ms saw how well the ipod was selling. they want a piece of the pie.
People by iPods for 1 reason: iTunes. Better integration and a huge easy to use library.
Zune has superior hardware, but the sync software took a wile to get close to usable.
But I agree with the analyst. This the the route MS should take to the smartphone sector, rather than the tragedy known only as Windows Mobile...
If the new HD is as good as I think it can be, it will set a new standard for PmPs... Here is to hoping MS gets it right.
Actually, Microsoft exists today due to Gates and friends successfully hyping DOS to IBM.
They made it through they 80s and early 90s with the stance that rich color and sound were something no serious business computer would make use of, let alone need.
Today their main markets are games and digital media, funny how that worked out.
Not trying to judge here, just saying.
Zune is a dead duck. All these kids these days want is iPods & iPhones.
So they are supposed to leave one Apple dominated market for another Apple dominated market? Okay....
I will never abandon the Zune.
Kevorkian wants to euthanise your Zune.
they say that the problem is that its not a phone - which is correct, the zune hd should be a phone, or have a phone option - but you can totally tell that their real problem is that its not made by apple and doesn't have an 'i' in front of its name. its hard for these 'analysts' and 'the market' to see any other good products on the horizon when there view is blocked by apple's scrotum...
I want a media player that looks really cool, like an iPod or Zune, has a fun interface, holds a shitload of shit, and can be used in whatever program I choose (winamp). I'd totally get a touch, but winamp can't manage a touch, only non-ssd ipods.
Here's hoping ZuneHD will give me all this. Does anyone know if you can use a Zune with winamp?
iPods do suck....overhyped crap. I've used other MP3 players I've liked better for much less cost. Frankly my phone serves as the only MP3 player I need....more than I need. iPods days are numbered, phones will take this away from then. Oh, and iPhones suck too. I like the hippie comment, that's exactly the kind of person who buys iPhones...trend following wanabes
It seems most people can agree now that Zunes are better hardware than their equivalent iPod counterparts. The only problem is that iPods still win because they have an amazing amount of hype behind them. Also, iPod users find it hard to switch to anything else because they are tied to their 5,000 DRM infested iTunes songs and can only use iTunes. But does Apple get sued by the EU for crushing competition by utlizing their 95% control over the market?
they say that the problem is that its not a phone - which is correct, the zune hd should be a phone, or have a phone option - but you can totally tell that their real problem is that its not made by apple and doesn't have an 'i' in front of its name. its hard for these 'analysts' and 'the market' to see any other good products on the horizon when there view is blocked by apple's scrotum...
I disagree with you, I believe if the zune came out as a media player without requiring you to use zune soft the player will take off.
The people who hates apple and likes to use software that came with the player will most likely buy a zune.
I personally think analysts dont know what the hell they are talking about. They just want some attention to themselves.
The Analyst is right. In 5-10 years, I wont have a netbook, ipod, and blackberry. I want a phone that runs windows and can do it all. Not windows mobile, not windows ce, some palm crap, or bberry os, just a computer that is a phone ..... Just one small fast device for my person.
I own a zune now and am looking forward to getting a Zune HD. The Zune has been very good for me and I have NO desire to have to be tied to iTunes.. sorry but Zune pass is cheaper, 15 bucks a month sounds alot better... all the music I want to load and I can get 10 mp3 downloads to keep a month. Or 99 cents for every song thru iTunes..
So, it will playback 720p! And where will this content to play at that resolution come from? I can't go buy a DVD and legally rip it to put on my Zune (or iPod, or any other device). I have a modest library of (I know I'll get laughed at for this) VHS tapes, and DVDs. I resent the idea that I should have to go buy them again, just so I can watch them on my PMP (and if you're wondering, I have a Zen Vision:M), but that's a whole different rant.
Back to my original rant. Where is this delicious 720p media to come from? So much of the sales propoganda for these devides is about that ability - but the average user can't access it in any meaningful way.
That said, I have to admit - the 720p is tempting. I will definitely be checking it out when it arrives. I'm not pronising to buy, mind you...
why would they abandon it?? I hate Apple products and will never buy their products but would definitely buy the Zune HD. So they SHOULD keep making Zunes. Plus you aren't foced to use shItunes with a Zune.
I don't know what the big deal is about itunes and how horrible it is. I've tried mediamonkey and winamp and just found itunes easier.
I have music. I want to listen to it. Itunes does that just as well as the rest.
iPods do suck....overhyped crap. I've used other MP3 players I've liked better for much less cost. Frankly my phone serves as the only MP3 player I need....more than I need. iPods days are numbered, phones will take this away from then. Oh, and iPhones suck too. I like the hippie comment, that's exactly the kind of person who buys iPhones...trend following wanabes
Sorry, not to be a big apple fan douche but all the hating on ipods around here makes me kinda think that the whole "I hate everything apple" is somewhat of a trend itself.
I don't see why Microsoft should stop making the Zune, it is still making money for them. It may not be a whole lot of profit but it is making money, like the case of the PSP for Sony. Mass media has a tendency to make it look like a device may be a dud, when in reality it has already sold a few million units.
Microsoft: IDC Analyst Should Abandon Her Job
exactly if the product is not loosing you money there is no reason to abandon it. it didn't catch on like the ipod but so what. if everyone thought this way products like the playstation 3 would have only lasted a year before being discontinued.
I didn't buy my iPhone because of iTunes. Have never and don't plan to ever purchase anything from iTunes. I bought the iPhone because at the time it had the best user interfaces of any phone. The iPhone also combined alot of features into one device. Over the past couple of years several companies have upped there game and now offer devices that will do as much with a much better user interface, so for my next purchase who knows.....
And for those of you wondering I purchased the original iPhone. Still love it and use it so I am not tied into any contract.