Zune's 2% (Not 9%) Market Share

[Darius Wey]

<div class='os_post_top_link'><a href='http://www.appleinsider.com/article.php?id=2323' target='_blank'>http://www.appleinsider.com/article.php?id=2323</a><br /><br /></div><em>&quot;When all the retail sources were polled and the data finely analyzed, Microsoft's fledgeling digital media player garnered a 9 percent unit share of the hard disk drive (HDD) segment -- or just shy of 2 percent of the overall U.S. market -- according to November data from NPD Group. That's a significant correction from an initial sales surge and a more selective data set that awarded Zune a staggering 9 percent share during its first week on the market. In speaking to AppleInsider, NPD analyst Steve Baker said the most recent share data was compiled from a more comprehensive list of retail sources that factored in iPod sales at Apple's own stores, and is therefore more representative of the Microsoft player's overall market share. Figures released by the firm immediately following Zune's launch in mid-November were culled from aggregate sales data coming only from the nation's top electronics dealers, which did not include Apple retail stores.&quot;</em><br /><br />So it appears that Zune didn't quite do as well as first thought. The initial report of 9% of the market share was quickly corrected to 2%, after factoring in iPod sales at Apple's own stores and resellers. But when you're looking at a first-generation device entering a market that's devoured by the iPod, coupled with the occasional odd bit of marketing, is 2% really that surprising?

[LPD]

Zune is not 2% of its market. Zune's market is hard drive based players over $200 and its share is well over 2% of its market. The 2% figure is meaningless because it includes all players, most of which are significantly cheaper in price and features. If all you sell is high powered cordless drills then you shouldn't care how many screw drivers and hand wrenchs get sold. The first week sales numbers are now anceint history and excluded many sales channels.
I'm getting really tired of people repeating these 2% and 9% numbers over and over, week after week. Neither number is accurate, both are not relevant.

[David Tucker]

Darius...did you read the segment you posted? It clearly says Microsoft's fledgeling digital media player garnered a 9 percent unit share of the hard disk drive (HDD) segment.

That's what was said last week and I don't know where the confusion is suddenly. Who cares if its 2% overall? That only matters if someone walks into a store and says "Hmm, do I want the 64mb flash player or the 30 GB Zune?" Anyone who picks the flash player isn't a member of the Zune's target audience.

Since we're going to compare disparate markets, let's see how the Zune stacks up against televisions, cars, video game systems (that would really make the Zune look great right now!), and just the market in general. I'm sure it'd be valuable to know what percentage of the market the Zune is in the overall world economy.

[Darius Wey]

Darius...did you read the segment you posted? It clearly says Microsoft's fledgeling digital media player garnered a 9 percent unit share of the hard disk drive (HDD) segment.

Sure, I did. I don't think anywhere in my post did I give off the hint that I misinterpreted it.

That's what was said last week and I don't know where the confusion is suddenly.

There is no confusion. I'm reporting on what's been reported. There are some people who like to get meticulous when it comes to sales figures, which is why I didn't completely throw this one out the door. And bear in mind I'm not on the attacking front here. Whether it's 2%, 9%, or even 100%, all things considered, if it sells well, and puts money in Microsoft's pocket, good for them.

And for the record, I don't think a 2% report is any less relevant than a 9% report. I personally like to see how the Zune is doing in all markets. I like to see today's trends in media players. Perhaps you disagree.

[Darius Wey]

I'm getting really tired of people repeating these 2% and 9% numbers over and over, week after week. Neither number is accurate, both are not relevant.

So, a better alternative would be to not post on any of these reports at all, right? Wrong. You're going to find that when hot gadgets such as the iPod and Zune are involved, statisticians will go out of their way to cook up figures month after month, accurate or not, relevant or not. You may not be interested in any of it, but other readers might. So, my friend, in times like this, ignorance is bliss. Don't spoil it for the others.

[LPD]

So, a better alternative would be to not post on any of these reports at all, right? Wrong. You're going to find that when hot gadgets such as the iPod and Zune are involved, statisticians will go out of their way to cook up figures month after month, accurate or not, relevant or not. You may not be interested in any of it, but other readers might. So, my friend, in times like this, ignorance is bliss. Don't spoil it for the others.

These numbers have already been reported on this site.

As for Zune being a hot gadget, obviously that remains to be seen.

Unless you have talked directly to NPD Group, these people are not "statisticians". This story is just an endless loop of bloggers reporting on themselves.

Going forward what is more telling about NPD Group statistics is not the numbers but who leaked them. If they come from Microsoft then they will be doing as well or better than they expected. If the numbers get leaked from Apple then Microsoft is in trouble. Companies only publish these things to make themselves look good or to make other companies look bad.

[Jason Dunn]

Hmm. It seems that every time a percentage or statistic is mentioned, it's all too easy to misinterpret what it really means and people seem to get quite upset about it. If the numbers are accurate, then it's interesting that the Zune has 2% of the overall MP3 player market and 9% of the hard drive player market.

Both are not meaningless like some of you are saying - clearly the 9% of HDD players is more meaningful because it's more of a fair comparison against similar hardware, but the 2% is also meaningful because it demonstrates how popular smaller, lighter, less expensive Flash-based players are in this market. Heck, I bought my wife a Shuffle for Christmas because there was nothing else like it on the market - and she's shure as heck not going to strap a Zune to her arm when working out at the gym. ;)

And as for whether or not we've posted on this before, well, we're only human people - extend us some grace. :)

[Camjpn]

2% isnt that bad for the Zune, which just joined :)...but 9% wow thats really good