MSFT's New Zune: Not Totally Flopping?

Microsoft’s new Zunes, the would-be rivals to Apple’s (AAPL) iPod line, may actually be selling okish, says a cautiously worded report from research firm iSuppli. The Zune 80 player is hard to find or is on backorder at multiple outlets, which could be great news for MSFT, or less so:

“The question is whether the Zune 80 shortage is the result of high demand, short supply or some combination of both,” Chris Crotty is the senior analyst for consumer electronics at iSuppli Corp.

Note that all of the above could also be applied to Amazon’s sellout of its Kindle machines. We will say that we’ve heard grudging admiration for the new Zunes from a handful of people who spend time paying attention to this stuff. But while we’ve seen plenty of new Zune ads, we have yet to spot a live human using one.

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