Bought New iPod nano and Zune Revenue Dropped 54 Percent ( $100 million )

I just picked up an iPod nano which is absolutely sweet looking. We have several iPods and iPhones, but this is the first nano and I have to say it rocks.

Sadly, A Zune wasn't even a consideration for many reasons, but especially considering Microsoft had a really bad 4th quarter with Zune revenue dropping 54 percent or $100 million. Ouch! Seriously, it makes me wonder if Microsoft will continue to invest in the Zune since Apple's sales of the iPod and iPhone continue to do well even during the weak economy we have now. Although competition is always a good thing, Microsoft should probably just cut their losses and look for other avenues of revenue.

According to MacWorld:

“Microsoft’s fourth-quarter revenue from its Zune platform dropped by $100 million, a decline of 54 percent on a year earlier.

Lower sales of Zune portable music players led to the decline, Microsoft said in a 10-Q filing with the U.S. Securities and Exchange Commission on Thursday. The Zune platform also includes the Zune Marketplace online store and the Zune Social online music community.

Microsoft launched Zune in November 2006 with the hope of posing a serious challenge to Apple’s highly successful iPod franchise.

However, the iPod continues to outsell the Zune by a mile: Apple shipped 22.7 million iPods in the quarter ended Dec. 27, up 3 percent compared to a year earlier, it said in its 10-Q filing on Thursday...”

 

You can read the whole article here.

 

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posted on Friday, January 30, 2009 11:07 AM

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