Creative Responds to iPod Price Drop

[James Fee]

http://www.betanews.com/article/Creative_Responds_to_iPod_Price_Drop/1109690976

"Electronics maker Creative announced Tuesday that it would drop prices on its Zen Micro, a move that could be seen as a direct response to Apple's recent changes to its iPod line. The 4GB Zen Micro dropped to $199, the 5GB to $229, and a new 6GB version will be introduced at a price of $249. The new pricing structure puts Creative in line with Apple's latest offerings. To sweeten the deal, Creative is offering a $20 mail in rebate on the 4GB version for players bought before May 30, bringing the price down to $179. The Zen Micro is currently the only Windows Media-based digital music player that has shown any promise of breaking into Apple's near-domination of the MP3 player market."



Well that is a good deal, but all rebates do is make me wonder if they are having trouble selling them. Hopefully Creative has an update in the works because the new iPod mini and its 18 hours of battery life really set a new standard for mini digital music players.

[James Fee]

http://www.betanews.com/article/Creative_Responds_to_iPod_Price_Drop/1109690976

"Electronics maker Creative announced Tuesday that it would drop prices on its Zen Micro, a move that could be seen as a direct response to Apple's recent changes to its iPod line. The 4GB Zen Micro dropped to $199, the 5GB to $229, and a new 6GB version will be introduced at a price of $249. The new pricing structure puts Creative in line with Apple's latest offerings. To sweeten the deal, Creative is offering a $20 mail in rebate on the 4GB version for players bought before May 30, bringing the price down to $179. The Zen Micro is currently the only Windows Media-based digital music player that has shown any promise of breaking into Apple's near-domination of the MP3 player market."



Well that is a good deal, but all rebates do is make me wonder if they are having trouble selling them. Hopefully Creative has an update in the works because the new iPod mini and its 18 hours of battery life really set a new standard for mini digital music players.

[Felix Torres]

Consumer electronics rebates aren't for the benefit of consumers or for stimulating sales; they are for the benefit of retailers and the manufacturer.
The retailers benefit from being able to build up their reported sales and while advertising a lower price.
Manufacturers benefit because not all rebates get paid out and because they don't have to reimburse retailers when inventory gets a price cut.

Consumers just get the hassle and the wait. :?

The latter is what Creative is doing: they filled the channel with 7 fruity colors worth of $250 players that now are priced at $229. Rather than reimburse retailers for the drop in wholesale price, they offer the rebate until the product gets flushed from the channel.
If the rebate gets extended, then we'd know sales are less than expected.
If it doesn't, then we'll know sales are good.

[James Fee]

Originally Posted by Felix Torres

If the rebate gets extended, then we'd know sales are less than expected.
If it doesn't, then we'll know sales are good.

Some interesting thoughts. I think the price of the iPod mini has left other manufacturers with almost no room to lower prices. That could be a good reason for the rebate. Still, it's going to take more than that to shift the tide. If only Creative has a color Zen Micro ready to go on the day Apple announces their new iPod mini's.....

[hoffm11]

Well, I just got a iPod this weekend and I had a Creative Nomad Zen. The Zen is pretty nice, but the iPod is certainly the king. There are so many features on the iPod and accessories that are awesome. The player it self has state of the art navigation controls. Once you own a iPod, you will never go back to anything else. At least that is my experience.

[Felix Torres]

Originally Posted by James Fee

If only Creative has a color Zen Micro ready to go on the day Apple announces their new iPod mini's.....

Uh, Creative already announced a color Zen mini at CES. It is called the Zen micro Photo. It is supposed to reach NorthAm by may day.

http://www.mp3.com/story/ces_players.html

[James Fee]

Originally Posted by Felix Torres

Uh, Creative already announced a color Zen mini at CES. It is called the Zen micro Photo. It is supposed to reach NorthAm by may day.

http://www.mp3.com/story/ces_players.html

I said ready to go, they aren't selling them yet.

My point was it would have been a great PR move to do that to Apple. The press would have been all over Apple asking why they don't have color.

Thanks for the link, but you could have referenced mine!

http://www.digitalmediathoughts.com/...pic.php?t=7449

[Felix Torres]

Originally Posted by James Fee

Thanks for the link, but you could have referenced mine!

http://www.digitalmediathoughts.com/...pic.php?t=7449

Blame Google. ops:
Its better than blaming Canada, right? :wink: