Jul 31
Microsoft Earning Show Steep Zune Dropoff
Posted in: ipod, Microsoft, MP3 Digital Audio, Today's Chili, zune
The last fiscal quarter wasn’t kind to Microsoft’s iPod killer. The company’s non-gaming entertainment group took a 42-percent tumble in that time, a number analysts are chalking up almost entirely to a steep drop in Zune sales.
Said analysts are also largely recommending that the company abandon what has largely been considered a pet project. “If Zune were going to make a strong move against the iPod, it already would have,” IDC’s Susan Kevorkian told MarketWatch.
Some are suggesting that Microsoft think less iPod and more iPhone, moving ahead. “Microsoft should abandon Zune and follow Apple’s strategy to try to make its presence felt in the high-growth smartphone sector,” Tradition Capital Management LLC VP George Kurian told the site.
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