Apple record a 21 million iPods for the holiday quarter, which helped boost the company's revenues by 50% and accounted for sales of $3.43 billion--half of Apple's total sales for the quarter, the company reported this week.
Stellar sales have earned the iPod a 72% share of the portable music player market, although Microsoft's Zune is making progress. Retail research firm NPD Group report that for December, Zune represented 10.2% of all units sold.
That growth is in line with Microsoft's expectations of exceeding 1 million units in sales by June 30. The company set a three-year plan to carve out a significant market share and build the Zune brand.
Microsoft has announced that it is working on a robust line of accessories with established and emerging manufacturers such as Harmon Kardon, JBL, Griffin, VAF and Belkin, most of who already make accessories for the iPod.
The growth of an accessories market is necessary for Zune to gain any significant mileage.
Microsoft has also said it is "getting traction with some of the top automotive brands like Ford and others to deliver integrated solutions for Zune while on the road," following in the tracks of Apple's relationships.