Since Microsoft (MSFT) first launched its Zune portable multimedia player over a year ago, there has been no good news. Most research puts it in fourth place in sales among similar devices, way behind the No.1 product, the Apple (AAPL) iPod.
But, recent news is that the relaunched and improved product, which has gotten good reviews, is selling out ahead of the holiday season. According the The Associate Press "the 80-gigabyte Zune media player Microsoft Corp. launched Tuesday has sold out across the Web, to the dismay of online shoppers and delight of the world’s largest software maker."
Microsoft should hardly be delighted. It should be troubled. At the peak of the holiday buying season, with a chance to gain market share from Apple, it is low on inventory. Of course, there is no word that Apple is having similar problems. Their manufacturing controls seem to be a little better.
The "sold out" Zune may make Microsoft fell good, but it is a significant opportunity lost.
Douglas A. McIntyre