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Microsoft's Zune is in short supply

But it's not for the reasons you might think
Wed Dec 12 2007, 13:21

THERE ARE shortages of Microsoft Zune, with back orders piling up, said market research firm Isuppli.

But it's not because the VoleDevices are outselling Apple Ipods, oh no, said senior analyst Chris Crotty at Isuppli.

He said: "The question is whether the Zune 80 shortage is teh result of high demand, short supply or some combination of both."

He believes Microsoft "erred on the side of caution" when it placed orders for the gizmos.

"Overall, Microsoft has been surprisingly non aggressive in its approach to the PMP/MP3 player market," he said. Isuppli is predicting that it will ship 211.5 million units and revenues of $19.5 billion this year.

"Microsoft waited nearly a year to follow up on its intiial Zune launch with the Zune 80," but had enough resources to develop products more quickly. Microsoft has delayed in adding more content, in particular video content, to its Zune Marketplace site.

It appears the Vole is showing timidity - not one of its normal attributes. µ


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