Microsoft: We’ll Sell 1M Zune Units by June ’07

Microsoft, the world’s leading producer of software, on Wednesday predicted that it will sell more than 1 million of its newly introduced Zune digital media players by the end of its current fiscal year, which closes on June 30, 2007, Reuters reports via WashingtonPost.com.

The Redmond, Wash.-based firm launched Zune on Nov. 14, and a 30GB version sells for $250.

Microsoft Zune

A recent report from market research firm NPD Group found that Zune’s share of the digital media player space in the United States dropped from 9 percent—and a second-place ranking behind Apple Computer’s uber-popular iPod—the week following its debut to 2 percent share—and fifth place—the week ending Nov. 25, according to Reuters.

“Our focus is less on week over week numbers, and more on the incremental sales that are leading to overall growth of the category,” Microsoft said in a statement, Reuters reports.

Apple Computer currently owns the digital music player and download market in the United States with its iPod and iTunes Store, and Microsoft Zune’s less-than-stellar sales following its launch prove that it has an uphill battle ahead of it if it wants to take any kind of significant bite out of Apple’s share.

Microsoft is touting Zune’s wireless song-sharing capabilities as one of its main selling points—Apple’s iPods don’t currently allow for wireless content sharing—but the feature is less impressive when the fact that songs can only be shared with other Zune users for three days before they disappear is taken into consideration. Zune also features a built-in FM radio tuner. IPod users can purchase FM tuner add-ons, but none of Apple’s devices comes with the functionality built in.