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It's All Downhill for Microsoft's Zune from Here On

Zune is slowly but surely fading into the background

By Marius Oiaga, Technology News Editor

5th of December 2006, 08:28 GMT

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Microsoft's Zune was knocked off from its number two spot on the United States market for digital media players. Is it all downhill for Zune from here on? Following a satisfactory market performance
in the first two weeks after launching, Microsoft's digital media player device has been continuously losing market share. The fact that in the middle of the holiday season, Zune has a descendant trajectory in sales mirrors the initial consumer perspective on the device.

Zune's incompatibility with consumers seems to grow in proportions. And no survey is more illustrative of this than Amazon.com's list of the most popular electronic products on the website. Zune 30 GB Digital Media Player (Black) has dropped to the 73rd position. Meanwhile, the iPod is still number one.

In its short life so far, Zune managed to grab hold of 2.1% of the US media player market by November 25. This score failed to even create a dent in Apples 75% dominance over the market, a situation that has been perpetuating now for over nine months.

As far as sales are concerned, Zune climbed as high as number two in the digital media player market, amounting a share of 9% while Apple still managed 39.3%. But, in the wake of the second week since its release, Zune dropped to the fifth position, while SanDisk returned to number two after a 50% price cut for the holiday season. Having failed to make a real impact on the market, Zune is slowly but surely fading into the background.
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