ABI Research Reveals 58 Percent of iPod Users May Choose Zune

Originally posted: ABI Research Reveals 58 Percent of iPod Users May Switch https://www.tmcnet.com/ce/articles/3343-abi-research-reveals-58-percent-ipod-users-may.htm
By: Susan J. Campbell https://www.tmcnet.com/tmcnet/columnists/columnist.aspx?id=100042, TMCnet Contributing Editor

All of you die-hard iPod enthusiasts may be dejected to learn that research has shown that Microsoft Zune may be posing a bigger threat to Apple’s iPod than you are willing to realize or admit.

ABI Research has released findings revealing that many prospective MP3 player buyers – including current iPod owners – would likely choose Microsoft’s Zune over Apple’s iconic product.

When 1,725 teenage and adult US residents were asked if they planned to buy an MP3 player in the next 12 months, 58 percent of respondents said they were “somewhat likely” or “extremely likely” to choose a Microsoft Zune over the iPod or another MP3 player brand.

Interestingly, this 58 percent identified themselves as existing iPod owners. Among respondents owning other brands, 59 percent were also “somewhat or extremely likely” to purchase the Microsoft Zune instead of another brand, including the iPod.

Steve Wilson, principal analyst at ABI Research, noted that iPod users do not exhibit the same passionate loyalty that Macintosh users have historically shown for Apple products. Only 15 percent of iPod owners reported being “not very likely” or “not at all likely” to choose Zune.

The real question is whether Microsoft’s Zune can garner the attention needed to rival the iPod’s impressive sales record. According to ABI Research, a critical factor will be Microsoft’s ability to differentiate the Zune from competing products in a meaningful way.

Wilson highlighted one differentiator: Zune’s Wi-Fi peer-to-peer sharing. However, he expressed skepticism about its current impact, suggesting that much more could be done with this capability.

To stay competitive, ABI Research advised Apple to make significant announcements and develop a high-end device that performs well and looks appealing, as other brands are catching up.

The data in the ABI Research report comes from an October 2006 web-based survey of a nationally-balanced, demographically-representative sample of 1,725 online consumers aged 18 and older. Respondents were shown a photo and description of the Microsoft Zune before being asked about their likelihood to choose it over a competing MP3 player. For more detailed survey results, click here).

While Microsoft has work to do to make Zune a commercial success, this survey’s results will likely shake the industry. Apple must innovate to maintain its position, as consumers demand more, and competition remains proactive. This ongoing competition will be fascinating to watch over the next year.