The Zune Phone Cometh?
According to the NPD Group Apple's iPod owns 71% of the market for portable music players, compared with 3% for Microsoft's Zune (via AP). But that could potentially change (somewhat) if Microsoft made Zune into a functional and usable (and inexpensive) phone. Ever since the introduction of Zune and the launch of the iPhone, there has been discussion of a Zune Phone.
Now there are a number of reports circulating that Microsoft will in fact introduce a Zune mobile phone in Q1 2009 at the next CES. We'll see.
By all accounts the Zune is a disappointment in terms of sales and market share. And the iPhone-RIM-Android triumvirate have eclipsed Windows Mobile's visibility and threaten its growth (save a couple of HTC devices). But a fun-sexy-cool Zune phone could capture some buzz and grow the Zune's market share.
Here are the caveats:
- Notwithstanding an expected, interim update (6.5) Windows Mobile 7 needs to come out sooner rather than later. Microsoft is playing catch up now with the user experience
- A Zune Phone (zPhone) could/should aim squarely at the youth market: price the phone aggressively at sub $100