Zune Pricing

Yesterday Microsoft announced the pricing and availability of Zune. Zune is priced at $249.99, although $.99 more than the iPod 30GB, I think it can effectively compete, and Zune will be available November 14th.

Zune will come pre loaded with 9 audio tracks, 13 music videos, 3 short films, and a variety of images. From a value standpoint it clearly edges out the iPod with a bigger 3" screen, WIFI, and an FM radio. Get all the scoop from MS' Cesar Menendez blog here. Reading the comments, it amazes me how many complain that a rumored price of $229 was not met, it seems so childish. I think at $249.99 it is a great value, the only issue I have right now is the lack of integration in my car stereo/Nav system (I have this with my iPod). Will WIFI be enough for me to purchase Zune?

Comments

[mchummer]

In research released on Friday, Wu contends that Microsoft will lose nearly $50 per every Zune sold, while Apple enjoys an estimated "18-22% gross margin and 8-11% operating margin."

Zune: Hurts Microsoft and Partners more than Apple
http://www.ibtimes.com/articles/20060929/zune-ipod-microsoft-apple-price.htm

[Stephen Skarlatos]

Sure they will loose money, as they did with the original XBOX. However now the XBOX is on it's way to capture 40-50% of the market. It is the price you have to pay when you are behind the curve...

I am not sure how much it will hurt partners, SANDISK has carved a nice niche for itselt as NANO competitor with a project 9.7% of the total market(http://www.mydigitallife.us/2006/09/and_then_there_.html) and they won't be hurt by this version of Zune.