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| UPDATED: 2006-10-13 |
 The Zune Is Profitable 
By: Nathan Weinberg 2006-10-13 There was a lot of worry Microsoft was going the game console route with the Zune, selling $350 worth of MP3 player for $250... ...but that is apparently not something to be concerned about. Microsoft CEO Steve Ballmer told BusinessWeek that the amount Microsoft loses on every Zune is None. How much money will you lose per Zune?
None. Apple put the hammer down there, dropped the price down to $249. If they had been $299, it would have been nicer. They have the advantage of scale. So were at $249, too. We dont make a lot of money, not to start out. So, while Apple may get better volume discounts, Microsoft isnt dealing with a loss-leader here. Good to hear. Now lets see if they can keep up, delivering improvements to the Zune in the coming year that will keep it in front of the iPod. (via AppleInsider > Digg) Comment * Originally published at InsideMicrosoft Tag: Zune Add to  Del.icio.us |  Digg |  Yahoo! My Web |  FurlView All Articles by Nathan Weinberg About the Author: Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines. Visit the InsideGoogle blog. |
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