Zune Hits 1.2 Million Mark, Onward to Zune 2.0

By the end of 2007

On the very same day that Microsoft reported a total revenue of $51.12 billion for the 2007 fiscal year ended on June 30, and $13.37 billion for the final quarter, the company also reported that it had met its initial forecasts for Zune. Microsoft's digital media player devices hit the shelves on November 14, 2006, but even from the get go, the company did not applaud the product as an iPod killer. Instead, Microsoft revealed that it planed to sell at least 1 million Zune devices by the summer of 2007. A modest goal, and Zune more than lived up to it. As of July 19 it was official that Microsoft shipped in excess of 1 million Zune, 1.2 million to be more specific.

These results fail to even come close to Apple's iPod. However, Microsoft stated that the company is committed on the long run to the digital music player market, and that it will continue to grow. In the quarter ended on March 31, 2007, Apple announced that it had sold no less than 10,549,000 iPods. In this context, Zune has a long way to go in order to compete on equal terms with the iPod. Unconfirmed estimates point to the fact that between November 2006 and June 2007, Apple managed to push in excess of 20 million iPods.

Still, Microsoft is only at the beginning of its road. The Redmond company plans - according to speculations - at least two new models for Zune. Scorpio will offer 80GB of hard disk space and the Draco Zune will come with flash technology. Microsoft did not offer official confirmation for this, however, Whizbyte stated that the company plans new Zune offerings by the end of 2007.

"We have seen the rumors floating around, but we haven't announced specific dates or details for the next generation of the Zune devices or service. That said, Zune follows the cycle of the consumer electronics cycle so you can expect an update later this year prior to the holiday season," a Microsoft representative stated adding that the company will introduce new devices, features, capabilities and functionality, and that Zune will also be made available outside of the United States.

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