Zune 80 vs iPod Classic: Fight!

[Adam Krebs]

<div class='os_post_top_link'><a href='http://reviews.cnet.com/4370-11399_7-324-101.html' target='_blank'>http://reviews.cnet.com/4370-11399_7-324-101.html</a><br /><br /></div>I love hypothetical &quot;who would win in a fight?&quot; discussions (the most famous and epic of which pitted chicken against squirrel), but in lieu of the fun-but-not-always-fair <a target="_blank" href="http://www.googlefight.com/">GoogleFight</a>, technology battles have to be handled by the pros at C|Net. Such is the case with the iPod/Zune debate. <br /><br />When tasked with this very issue last generation/year, C|Net <a target="_blank" href="http://www.cnettv.com/9742-1_53-24992.html">raised</a> the iPod's metaphorical arm in a 20-19 <a target="_blank" href="http://www.cnettv.com/9710-1_53-25109.html">victory</a> much to the chagrin of many a Zune fan. This year, the flashy videos have been done away with and the gloves are off: it's showtime. The staff did a fair job of pointing out the accomplishments and flaws in both devices, and I won't ruin it for you, except to say: Zune doesn't lose!<br /><br />Yes, it appears the Zune is finally getting its due. Though a lot of the points are ones we've heard a million times before (lack of eq, no integration with P4S/Macs, missing features in the software), they do mention the improved design and thinness of the device. I can't wait until next year.

[doc]

I really hate it when they do "that"! See who the winner is...

[Macguy59]

Of course the real benchmark is sales. Will be interesting to see the numbers after the holidays.

[serpico]

I read this the other day and thought whatever. I couldn't believe they came up with that result. The ipod is so old and stagnate that this is the last hurrah for it, I think. The ipod touch/iphone is the only new ground that Apple has come up with in a long time. After years of reading rumors, I wasn't as excited as usual when it arrived. Maybe the Apple "fanboyism" is running dry now as I get older! LOL

The zune is so much nicer to use than the ipod in my opinion. The software will improve just like itunes did. Be patient.

[jm]

Of course the real benchmark is sales. Will be interesting to see the numbers after the holidays.

Maybe, but it seems like Apple's and MSFT's business models are different. According to Cringely (about a year ago or so), iPods make the money, iTune downloads break even or so. I've never noticed the massive price reductions of iPods as we've seen lately with Zunes (but maybe I've missed them). On the other hand, MSFT has a reputation for settling for minimal profits on hardware so that they can sell subscriptions in this case at Zune Marketplace.

So comparing numbers won't necessarily be meaningful. Would MS 'win' with higher numbers if it were losing money on every Zune sold? (I'm not saying that it does, but surely those $80 Zune 1s are not making a profit.) Only if enough of those buyers are willing to pay $15/month.
JM

[Macguy59]

Maybe, but it seems like Apple's and MSFT's business models are different. According to Cringely (about a year ago or so), iPods make the money, iTune downloads break even or so. I've never noticed the massive price reductions of iPods as we've seen lately with Zunes (but maybe I've missed them). On the other hand, MSFT has a reputation for settling for minimal profits on hardware so that they can sell subscriptions in this case at Zune Marketplace.

So comparing numbers won't necessarily be meaningful. Would MS 'win' with higher numbers if it were losing money on every Zune sold? (I'm not saying that it does, but surely those $80 Zune 1s are not making a profit.) Only if enough of those buyers are willing to pay $15/month.
JM

Sales of the devices are still critical are they not? You need a reason to visit Zune marketplace. Speaking of the massive discounts on Zune v1's, are they cannibalizing v2 sales?

[jm]

Sales of the devices are still critical are they not? You need a reason to visit Zune marketplace. Speaking of the massive discounts on Zune v1's, are they cannibalizing v2 sales?

There's the old joke, "We lose money on every unit, but we make it up in volume." Zune could win and lose at the same time.

But you're right, of course. Zune market subscriptions need Zunes. The questions is what percentage of Zunes need to be tied to Zune subscriptions? I wonder if it's the number of Zunes that can use a single Zune pass. That's 3 right?

As for whether Zune v1s are taking away from v2s, I don't really know. The main reason I bought a Zune 30 (2 actually, 1 is for my daughter) is because it was cheap on Woot. If I had actually had to spend real money, I probably would have bought a different brand, like Creative. So my purchase didn't cannibalize the V2. I guess if my analysis (such as it is) is right, it doesn't matter, since what they really want is subscriptions, and don't care what unit you buy. Just as well given that they seem not to have adequate amounts of Zune 80s.

[serpico]

Isn't Universal still getting their $1 haha? There goes any profit.:D