Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
Current estimates suggest that there are about 70
million iPods in the marketplace, with sales of new iPods approaching 3
million a month, by the time Microsoft reaches its target of 1 million
Zunes, Apple could have close to 90 million iPods in the hands of users.
At Microsoft's predicted sales target, there would be about 20 iPods
sold for every Zune that gets purchased. This is hardly an ambitious
target for a company that intends to become a major force in the music
player business, but probably realistic.
The problem for Microsoft, however, is that, despite a multi-million
dollar marketing compaign, at the moment Zune is not even matching it
with iPod's competitors such Sandisk's Sansa and Creative's Zen.
This is possibly because the one feature that differentiates Zune - its
wireless capabilities - are practically useless at present. There is no
wireless connectivity to a PC and a Zune owner will have to look long
and hard to find another Zune owner.
Another huge drawback of the Zune is its lack of ability to be used as
a USB data storage device. One of my sons used his iPod to store some
study notes for a school Science test. Using the iPod wheel he showed
me how he could scroll through the notes using the touch rotation. "How
cool is that!" he said to me.
How cool indeed - too cool for Microsoft to allow apparently. In the
design and marketing of Zune, Microsoft seems to have missed the point
about what people want in a portable music player device. Hopefully, on
its way to reaching its modest sales target, it will get a clue.
David Frost
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