Apple is a cultural icon, as trite as that sounds. Well, more specifically the iPod is. Macs are still largely the domain of creative professionals like myself. The iPod not only revolutionized how we listen to music but how it was sold. It was a game changer, even if it wasn't the first.
Apple did the same thing with the smart phone. The iPhone wasn't the first, with RIM already having a huge head start. However, the App Store was it's killer app. Again a game changer.
Apple is good at taking something that already exists, then turning it into something more accessible to average users. It doesn't have to always be cutting edge. People like Apple's products because they are good. They're easy to use, Apple stands by what they make, and they offer solid quality. Apple is also really good at marketing. They know what their audience wants and they deliver. Which brings us to what's wrong with the Zune.
I think the Zune's fatal flaw is marketing. It's highly rated and has some innovative features like HD radio, movie rentals, subscirption music, and wifi sharing. As CNET put it, it offers "the best portable music and video experiences money can buy." Can I go to the local Best Buy and pick one up? Nope, not a chance.
TigerDirect is the only major retailer in all of Canada that stocks the Zune HD. Then, it's only the more expensive 32gb model. Amazon only stocks the older model. Only in pink interestingly enough. Canada is the only other country besides the US where the Zune is sold. According to Wikipedia, Microsoft has apparently stopped sales in Canada entirely. Despite being the second most sold MP3 player in the US, it's got under 10% market share. I've never seen it advertised on TV. I don't think anyone really knows it exists.