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Zune MP3 players' opening salvo a dud
Nov 15 03:00 AM US/Eastern
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Microsoft's attack on the Apple iPod began with a whimper as Zune players made a lackluster debut in US stores.

Two boxed Zune players sat ignored on the top shelf of a Plexiglas showcase packed with iPod accessories in a Virgin Megastore near Union Square in San Francisco's popular shopping district.

"I didn't even know they were there until a customer pointed them out," said sales clerk Jake Brooks.

"I'm sure we have more in a closet in the back somewhere."

By mid-afternoon the store had sold one Zune player and one other person had inquired about them.

The scene was bleaker at a CompUSA store a block away, where the manager said an oversight by Microsoft sales people had resulted in the store not getting Zunes for display.

No apparent harm was done though, said the manager, because no shoppers came asking about Zunes.

The scene was slightly brighter for Microsoft at a Best Buy electronics store south of Market Street, where workers said they sold "a lot of Zunes" when the MP3 players went on sale for the first time that morning.

Meanwhile, more than a dozen people tinkered with iPods on display at an Apple store across the street from Virgin. Apple customers waited in line at the cash register to pay for iPods and accessories.

"I like iPod," Andrew Fisher said moments after buying an 80-gigabyte movie-playing iPod for 349 dollars plus tax. "I'd rather support Apple than Microsoft, even though a friend of mine works for them."

"Besides, I imagine Zune has some kinks to work out as iPod did."

Microsoft has packed Zune with features that iPod lacks, such as FM radio, wireless connection between devices, and a large video screen.

Zune, available in black, white and brown models, has 30 gigabytes of memory. They were priced at 250 dollars, on par with iPods with equal amounts of memory capacity.

Meanwhile, Apple announced on Tuesday it had made deals with six major airlines to enable iPod users next year to plug iPods into in-flight entertainment systems and watch downloaded films or video on seat-back screens.

Apple has sold nearly 70 million iPods since introducing them in 2001 and the devices command about 75 percent of the global MP3 player market. Apple's online iTunes store sells digital music, podcasts, video and films.

Microsoft's online Zune Marketplace sells only music for the devices.

Microsoft's website claimed that Zune "can automatically import your existing files, including your music and video from iTunes."

Redmond, Washington-based Microsoft has played up the "social" aspect of Zune, saying the players allow users to share music in a way that iPods do not.

The downside was that borrowed songs are automatically erased after three days or three plays, even if the lender was the musician.

In an effort to bulk up the selection of Zune Marketplace music, Microsoft has courted studios, going so far as to promise Universal Music Group a percentage of Zune sales revenues.

Analysts have cautioned that Microsoft was likely to view its campaign to overthrow the iPod regime as a marathon, not a sprint.


Copyright AFP 2005, AFP stories and photos shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium

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