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Last updated: Thursday, August 13, 2009

Microsoft’s next-generation Zune digital media player is now available for pre-order through Amazon, Best Buy, and Walmart in advance of its official release on Sept. 15. Available in two models featuring 16GB and 32GB of storage capacity, the Zune HD players will feature touch-sensitive screens, Wi-Fi connectivity, and live radio station access. But Microsoft’s Zune HD won’t have an easy time gaining market share at the expense of market leader Apple, said Susan Kevorkian, consumer markets program director at IDC. “There’s no argument that Microsoft has consistently improved upon the Zune product line,” Kevorkian said. “But you need to look at Zune in terms of the bigger picture,” for which “the main question is, can Microsoft gain on the iPod touch?” Back to Basics Though the first-generation Zune player was accompanied with a very strong marketing campaign, Microsoft hurt itself by not coming to market initially with a compelling product, Kevorkian said. This was reflected in U.S. sales for 2007, when Apple held a 47.8 percent share of the market versus just two percent for Microsoft, according to IDC. Since then, Microsoft has gone back to basics and is offering a more compelling media product, Kevorkian observed. However, IDC believes Apple has always managed to stay a couple of steps ahead, she said. “We believe that the current regeneration Zune HD is not capable of gaining on the iPod touch because of the strides that Apple has made in the past year,” Kevorkian said. In particular, Apple made a smart move when it gave iPod users “direct access to the Apple App Store.” And going forward, “we believe that Apple will continue to innovate on the iPod,” Kevorkian said. Still, the 16GB and 32GB Zune HD players will sport suggested retail prices of $219.99 and $289.99, where comparable versions of the iPod touch…

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Next-Generation Zune HD Can Be Pre-Ordered

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