Microsoft slashes Zune pricing ahead of Apple iPod event
Hours before Apple Inc. is expected to introduce new iPods at a special event in San Francisco, rival Microsoft Corp. has announced that it is dropping the retail price of its 30GB Zune music player to $200.
Electronista points to a posting on Microsoft's Zune Insider blog making note of the $50 cost reduction:
"It's part of the normal product lifecycle, something we?ve had on the books for months," wrote Microsoft's Cesar Menendez. "We just got some research back and customer satisfaction with the 30GB device is really high (around 94 percent) and we expect even more consumers will now want to discover the Zune experience at the new lower price."
The price drop comes shortly after Mindy Mount, the corporate vice president and CFO of Microsoft's entertainment and device division, said that she grades the Zune a "B-" in its current state, noting that the player is doing well, saleswise, for "a product out in less than a year and a half," but that the company is still developing the brand and trying to expand its identity.
It's widely expected that Apple will use its "Beat Goes On" media event later this afternoon to usher in a new breed of Mac OS X-based iPods that with again broaden the gap between the Apple and Microsoft players.
Apple's event begins today at 10:00 a.m. Pacific, 1:00 p.m. Eastern.
Electronista points to a posting on Microsoft's Zune Insider blog making note of the $50 cost reduction:
"It's part of the normal product lifecycle, something we?ve had on the books for months," wrote Microsoft's Cesar Menendez. "We just got some research back and customer satisfaction with the 30GB device is really high (around 94 percent) and we expect even more consumers will now want to discover the Zune experience at the new lower price."
The price drop comes shortly after Mindy Mount, the corporate vice president and CFO of Microsoft's entertainment and device division, said that she grades the Zune a "B-" in its current state, noting that the player is doing well, saleswise, for "a product out in less than a year and a half," but that the company is still developing the brand and trying to expand its identity.
It's widely expected that Apple will use its "Beat Goes On" media event later this afternoon to usher in a new breed of Mac OS X-based iPods that with again broaden the gap between the Apple and Microsoft players.
Apple's event begins today at 10:00 a.m. Pacific, 1:00 p.m. Eastern.
Comments
Have they sold 1 Million Zunes yet?
An even more intresting question is did they manufacture a million of them expcting rapid sales and how many do they have sitting in warehouses to sell.
An even more intresting question is did they manufacture a million of them expcting rapid sales and how many do they have sitting in warehouses to sell.
well I did a google on Zune and 'sold' and got-----
Mon May 28, '07 08:55 AM
""According to Robbie Bach, Microsoft's president of the Entertainment and Devices Division, Zune has already met the goal of 1.000.000 players sold, set at launch for the end of June. He also confirms that new Zune things will come in this fall, talks (not) about the Zune Phone, the new Watermelon Red Zune, the Zune Marketplace and of course Xbox 360.""
I am not a Microsoft fan, But good for them-
My Zune will go to my wife. As a standalone media player it works fine, so she'll be happy with that.
Personally, at this new lower price, I do want to discover the Zune experience. Further, as the brand becomes fully developed and its identity expanded, with--additionally--the product being out more than a year and a half, I would be willing to pay a higher price.
suit yourself
Don"t zune her.
Zune? What's a Zune?
I was wondering the same thing.
Personally, at this new lower price, I do want to discover the Zune experience.
Hahaha.. sorry I don't mean to be rude, but Zune experience? Hahahaha!
suit yourself
Too subtle?
When asked when the Zune would be going to Europe, and the rest of the world, a month or so ago, Ballmer said that doing so at this time would only cost MS more money, and that they wouldn't do that until it became profitable.
Therefore, we may see when, and if, it does become profitable, by MS's international sales policy.
The assumption was that MS was stunned at the last Apple pricing, and was intending to market the Zune for $299 list, but had to drop it to $249 before launch due to Apple's pricing. $249 has been assumed to be a break-even price.
I question whether $199 list will allow MS to recover costs, as not that many have been sold. I've heard the number now might be 1,5 million.