Microsoft slashes Zune pricing ahead of Apple iPod event

Posted:
in iPod + iTunes + AppleTV edited January 2014
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.
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Comments

  • Reply 1 of 90
    Have they sold 1 Million Zunes yet?
  • Reply 2 of 90
    Quote:
    Originally Posted by M.O.S.T View Post


    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.
  • Reply 3 of 90
    Why be good when you can settle for cheap?
  • Reply 3 of 90
    Quote:
    Originally Posted by Restalot View Post


    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-
  • Reply 5 of 90
    must have sold atleast 50 that means....
  • Reply 6 of 90
    Wow, I wonder how much this is costing them. Has Microsoft broken even on this flop yet?
  • Reply 7 of 90
    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.
  • Reply 8 of 90
    like couple weeks ago Woot.com was selling white Zune for $149. that's about the right price.
  • Reply 9 of 90
    nofeernofeer Posts: 2,422member
    YO BABY--apple must have something massive today.......zune is irrelevant, the market knows it as well. go apple go also bodes well for the zunephone.....NOT!
  • Reply 10 of 90
    I bought the Zune on opening day with high hopes and promptly learned my lesson. It could've been so much more. So now I eagerly await today's announcements with wallet in hand.



    My Zune will go to my wife. As a standalone media player it works fine, so she'll be happy with that.
  • Reply 11 of 90
    CompUSA had dropped the price yesterday, not sure if they'd done it earlier. I talked to their salesmen, they've basically never moved a single one.
  • Reply 12 of 90
    Quote:
    Originally Posted by DoctorRobert View Post


    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
  • Reply 13 of 90
    Zune? What's a Zune?
  • Reply 14 of 90
    The problem with Zune is that it's a device everyone loves to hate. Whereas the iPod is a device everyone loves to love, unless they are simply afraid of being labeled a lemming instead of judging the iPod on its merits alone.
  • Reply 15 of 90
    I have still NEVER seen a Zune in the flesh. Not even in an electronics store, let alone in a persons possession!
  • Reply 16 of 90
    tednditedndi Posts: 1,921member
    That qualifies as domestic violence.



    Don"t zune her.
  • Reply 17 of 90
    Quote:
    Originally Posted by anantksundaram View Post


    Zune? What's a Zune?



    I was wondering the same thing.
  • Reply 18 of 90
    Quote:
    Originally Posted by DoctorRobert View Post


    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!
  • Reply 19 of 90
    Quote:
    Originally Posted by DeaPeaJay View Post


    suit yourself



    Too subtle?
  • Reply 20 of 90
    melgrossmelgross Posts: 31,471member
    The Zune has been selling for $199 for a while at many outlets.



    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.
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