In an industry, becoming the “default” product is a dream come true.
When most people think of buying an MP3 player, for example, they immediately think about an iPod. It’s not that other products aren’t as good and/or better value, it’s just that the iPod has become so ubiquitous, it’s difficult for other products to attract the spotlight.
Apple has maintained its dominance by continually pushing innovative, even if it means cannibalizing its existing portfolio. By continually introducing new iPods, Apple has kept its rivals on their heels while, in the process, slaying players such as Dell.
Given this competition environment, it will be interesting to see if the Microsoft Zune can establish a foothold and establish itself as a viable alternative to the iPod.
Most of your are probably saying “You’ve got to be joking!” but the Zune seems to be gaining some traction as it evolves from its roots as a clunky brick with little design appeal into a slick product with some cool features.
The question is whether it’s too little, too late. The iPod is so established and iTunes has become such a behemoth (>5 billion songs sold), you have to wonder if there’s still room in the market for a strong number two.
For the Zune to succeed, Microsoft not only needs to create cool products with consumer appeal but also become a music retailer or, at least, make it easy for Zune owners to buy the music they want to make the device useful.
The other challenge is perception. The Zune is probably still plagued by its debut in 2006. It’s difficult to have sizzle if your first product was called a “brick”. Nevertheless, if any company has the marketing muscle to change its image, it’s Microsoft. Of course, that’s a lot easier said than done.
If Zune has any chance of seeing more success, there’s no silver bullet. Microsoft has to keep on creating cool devices, push forward as a music distributor, and try to do the best job it can convincing people the Zune can Zoom.
More: For what it’s worth, Piper Jaffray’s Gene Munster believes Apple will sell 11 million iPods in the fourth-quarter – along with 2.8 million Macs and five million iPhones. For more on what Apple, Microsoft and others are offering these days, check out SiliconValley.com.
