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Zune 2

TechTrends: Microsoft Zune Fails With Color, Sex Appeal

POSTED: 4:45 pm PST November 28, 2006
UPDATED: 3:31 pm PST January 11, 2007

MP3 players are red hot, but can the Microsoft Zune make a dent in the success of Apple's iPod?

So far, the player has struggled with sales, NBC11's Scott Budman reported.

The device sells for just under $250 and lets people share songs, playlists or pictures over a wireless connection with nearby Zune users. When users send a song to a friend, it can only be played up to three times over three days.

The music service will let people buy songs individually for about 99 cents, the same that Apple charges for songs from its popular iTunes Music Store. However, users have to use Microsoft Points to make the purchases.

Analyst for the Enderle Group Rob Enderle said the player's color could be hurting sales.

"Microsoft came to the conclusion after market research that the new hot color is brown," Enderle said. "No other hardware company has come to that conclusion."

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According to merchants NBC11 spoke to, shoppers are virtually ignoring the Zune. Anemic early sales indicate the Zune could be falling short in the hip factor, Budman reported.

"They want it to be small. They want it to be sexy," Enderle said.

As the shopping season approaches, the Zune is just not connecting with shoppers, and is in danger of becoming the Edsel of the tech world, Budman reported.

"At the end of the day, particularly this time of year, putting the sparkle in the recipient's eye is the goal of the gift. The iPod will do that, and the Zune won't," Enderle said.

It may be too soon to bury the Zune, but the patient is barely breathing.


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