Second Generation Zune Confirmed by Microsoft
Jason Reindorp, Microsoft's marketing director for Zune, confirmed the release of the second generation Zune for this fall.
The second generation Zune will be built by a Chinese partner located in Doumen in China. The same city where the Xbox is manufactured. This also means that Microsoft dumped Toshiba as the hardware supplier.
The information was not confirmed by Microsoft, but Flextronics (picture above) would be the best fit since they're already the Xbox's manufacturer in Doumen. The company already has 1,948,930 ft2 of manufacturing space in Doumen only. Quite a lot more than what is needed to manufacture the Zune!
Reindorp said the company hopes that by taking a more direct role in manufacturing a second version, it will help the device gain popularity.
"There are definitely some cost efficiencies, but the more important thing from our perspective is the flexibility and control we have in creating a device from scratch and making it down to the last component what we want it to be," Reindorp added.
Jason Reindorp did not reveal any details of the new upcoming Zune players. Let's hope we are going to know a lot more in June!
Last update on May 16th, 2007

I guess the June 1 date for new product is premature as they won't have time to complete the factory by then...
Posted by: zuneone | May 15, 2007 at 01:24 PM
opps I think you meant dump Toshiba, not dumb... Maybe that Chinese partner will be Meizu!
Posted by: zuneone | May 15, 2007 at 01:26 PM
Yes, right! dumped!
They could announce the second generation Zune on June 1st and availability for this fall.
Posted by: Stephane | May 15, 2007 at 01:49 PM
I don't think Microsoft collaboration with Toshiba on Zune was ever intended to be long term. I remember reading some stuff last year that already indicated this was a temporary thing to get up and run fast. So I think using the word "dumped" is abit strong.
As far as the sq ft. I imagine that Microsoft will use the facility for other purposes besides Zune in the future. One of the benefits of having your own facility (which Microsoft bought, they didn't build it) and doing the assembly themselves...is they can lower the cost of doing limited runs such as the Halo 3 Zune.
My only concern was the comment Jason made "..making it down to the last component we want". I wonder if he's suggesting the Zune's processor, etc.. is beefer than they thought needed..thus more expensive than they would have liked. Hopefully he is talking about making use of more cutting edge technology that Toshiba's "Zune" reference design might not have incorporated.
Posted by: JohnCz | May 15, 2007 at 07:08 PM
Well I guess its time to start saving up for the new Zune and give the old one to my sister. Hopefully this new Zune factory will as promised be able to make more limited edition Zunes with more colors because that is how I think that Microsoft will take out the iPod and if they as promised uncripple the Wi-Fi it will be another blow to the iPod.
Posted by: Kpatel | May 17, 2007 at 08:32 AM
I think they should add more feautures to the new Zunes and make them slimmer. That would probobly make them sell more.
Posted by: Jor-Digs | May 19, 2007 at 09:31 AM