Zune not even close to snatching Apple's crown

Although Microsoft's Zune captured a decent slice of the hard-drive-based audio player market at large US retail stores, it failed to crack into the top 10 list of models in overall sales, according to market researcher Current Analysis.

The top 10 models included eight different iPods from Apple as well as two models from SanDisk, according to the company which tracks sales at Best Buy, Circuit City, CompUSA, RadioShack and Staples.

The Zune, meanwhile, captured 12 per cent of the hard-drive-based player market for December, although Current Analysis' study does not include many retail sales outlets, including Wal-Mart Stores and Apple's own retail stores. An earlier study by the same company in the midst of the holiday season found roughly similar results.

Current Analysis research director Samir Bhavnani said in an email interview: "Microsoft did well for a newcomer but it was competing in a segment that accounted for only one-fifth of all holiday sales."

Apple, meanwhile, continues to plug along, he said: "It has retained its top spot without having to turn on a subscription-based download service as a new product offering."

Bhavnani said that he doesn't expect Redmond to stand still, however. "Looking forward to 2007, I expect to see Microsoft offer a flash-based competitor to SanDisk and the iPod Nano/Shuffle in addition to a less bulky [hard-drive-based] player."

Microsoft has said it plans to expand the Zune effort, which it expects to be a multi-year haul.

The study surveyed sales from the day after Thanksgiving to the end of the calendar year.

Ina Fried writes for CNET News.com