Just a few days ago, the new Microsoft Zune multimedia device was dead It had fallen out of the Amazon "Top Ten" consumer electroincs sellers. Stick a fork in it.
But, recent data from Reuters suggests otherwise. Thirty-five percent of Zune buyers are expecting to buy the device to replace another digital media player. Yes, thirty-five percent. Zune has also grabbed 9% of the multimedia player market in the last week, moving into second place ahead of Sandisk.
Interestingly enough, the Reuters showed that 80% of the people it surveyed were in the market for their first portable multi-media player, a sign that the market for these devices can still expand.
Apple’s lead is still commanding, and it may never be supplanted as the No.1 device. But, the early data on Zune is not as bad as the initial media reports, and Microsoft, if nothing else, is a dogged competitor.
TIme will tell.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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