Share
When it comes to the Zune multimedia player, Microsoft’s prospects for success and fortune could be distinctly limited after the company’s latest quarterly filing with the Securities and Exchange Commission revealed a significant dip in revenue.
Does plunging revenue suggest Zune\'s days are numbered? Image: AuroaBorealis/Flickr.
Specifically, the American software giant’s filing notes that Zune revenues for the holiday quarter of 2008 plunged when measured against the same period in 2007.
“Zune platform revenue decreased $100 million or 54% reflecting a decrease in device sales,” outlined Microsoft.
Converting that drop into tangible figures, the final quarter of 2007 saw the Zune amass revenue of approximately $185 million USD, while the holiday period of 2008 saw declining consumer interest return $85 million USD.
While, at first glance, $85 million USD could be construed as a fairly hefty amount, it’s only when running Microsoft’s Zune numbers against those posted by Apple for its iPod device that things shift starkly into perspective.
Over the course of 2008’s busy holiday season, Cupertino-based Apple pulled in a massive $3.37 billion USD off the back of 22.7 million unit sales. What’s more, that figure marks a year-on-year drop of 16 percent, which outlines Apple’s continued market dominance despite yielding to current economic pressures.
As reported by the likes of the Wall Street Journal, without a radical refresh, the Zune’s swift and ongoing decline could well lead to a bleak future where the device faces the prospect of no market share as opposed to just low market share.
Interested in a more interactive TTH? Join our Facebook Group Want regular updates from The Tech Herald? Follow us on Twitter
Advertising
Comment on this Story