Creative Getting Clobbered by iPod?

[Kent Pribbernow]

<div class='os_post_top_link'><a href='http://news.yahoo.com/news?tmpl=story&u=/afp/20050612/tc_afp/singaporecreativemusic' target='_blank'>http://news.yahoo.com/news?tmpl=story&u=/afp/20050612/tc_afp/singaporecreativemusic</a><br /><br /></div><i>"Analysts say that although Creative is still selling millions of portable music players, profits are slumping as Sim's products remain unable to attain the "iconic cool" status of Apple's iPod. Locked in a fierce price war with Apple and other electronic giants, Creative's net profits in the March quarter fell 72 percent to 15.9 million US dollars from 57 million dollars a year earlier."</i><br /><br /><img src="http://www.digitalmediathoughts.com/images/capt.sge.cnc23.120605224525.photo00.photo.default-248x380.jpg" /><br /><br />Amazing what an iconic cult status can do for market share and profit margin, isn't it? Creative is the second largest distributor of digital audio players, behind Apple. I had assumed this was a profitable segment for Creative. But I can see how they would be taking bath by having to compete on price; that's always a losing strategy.

[Felix Torres]

But I can see how they would be taking bath by having to compete on price; that's always a losing strategy.

Tell that to DELL...
...and the roadkill they've left behind.

[Jason Eaton]

If one had to walk around in public with the PC strapped to them, then Dell might feel the pinch of Fashion vs Price. :D

For better or worse, the iPod design/function, and associated 'it is hip are you?' commericals, are a very very hard combination to beat. Besides what marketing has been done by Creative et all? Sometimes it just takes money spent to make money.

[dane]

Apple has great ads, but as a consumer, my Zen Micro had it all over an Ipod Mini in features and, I think, design. Not only did I get a larger hard drive, but I got the radio I wanted (albeit a weak one) and I can change my battery out anytime I want. I still prefer the up and down scroller on the Zen to the circular one on the Ipod, but then I don't like the controls on a Canon 20D (it has a circular scroller on the back too and arguably the best image quality in the sub $2000 DSLR market) and bought a Maxxum 7D instead. My experiences with I-Tunes software also left me less than impressed.

I must admit that I haven't seen any Zen Micro TV ads. They should show it pulsing with its blue glow as it charges in the dark.

I must agree, money must be spent to make money. All I can say is, good for Apple, bad for everyone else. I wonder how long it will last. Now you can by Ipod accessories at Target and WalMart. Smart move.

[Jason Dunn]

Ouch - that's a huge drop in profits. Creative makes some really good stuff! It's hard to compete against a mindshare juggernaut like Apple though.