Even if they are dumping in favor of an upcoming model, it looks like panic and poor planning. First of all, didn't they stuff the channel to create the appearance of sales? They they need to actually move those things off the shelf and it appears hard for them to do. Secondly, with a one-product product-line they could easily introduce a new model without having to put the current one on firesale. They don't even discount the old model until the new one is available. Look how Apple introduces a new model that complements the existing line fairly well, going after a somewhat different segment. They didn't clear stocks of the iPod to put out the Shuffle or the Mini or the Nano. The Zune isn't in any of those markets, MS could easily put out a cheaper Zune or a more expensive one while leaving the existing model and pricing intact. Does anybody think MS has a magical new model that somehow destroys the viability of the current Zune? I don't think that's Microsoft's history. The Zune seems to be a major flop, at least that's how I read it.
Lord, I edited that previous message into nonsense. Anyway, look how Apple introduces a new model and how and when they change the pricing on the old model.
That one-eyed penis creature ad just didn't seem to connect with the target demographic?
Ah! This explains, to me anyway, why Apple put the iPhone up on their site when it did and why it decided to keep it there for months on end. A pincer move: Between the iPod's actual competitive edge and the virtual iPhone's mystique, Zune #1 hardly had a chance.
It will be interesting to see how MS ups the ante. Maybe we will see free Zunes with every PC, paid for by the PC vendors as part of licensing. Why compete on product when it's unnecessary?
I don't know what Microsoft is going to do, but they are going to have to do something soon. Otherwise, Zune could soon parallel the success of Microsoft Bob....
Thanks for all the comments, all!
Carl
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