Originally posted by chenc:
LOL. U just slapped yourself.
Creative's sound blaster in universally considered to be unpratical. Why would people pay few hundred bucks more for a sound upgrade which provides a sound enchancement that makes no much difference to human ear.
If you bother to read magazines like Times of even some cheap PC magazine, you will know that Creative is losing LOTS of money due to mp3 competition. 90% of Creative's income depends on MP3 and if this business is losing money, how can the company make profit?
Just 1 year ago, business experts critisiced Sim for his lousy plan on the MP3 war. It seemed that Creative cut its MP3's price to sometimes below cost price and still lost out to Apple.
Sim replied to the reported by say:" The war is just starting, lets wait and see" He's thinking he will eventually win.
Thats right before Zen Neon come out. Well Zen Neon sure did lift Creative's sales in that few months, but right after that it was blown away by iPod Nano.
Can't believe a year ago every news report on how Creative lost money trying to challenge Apple and othe mp3 and yet you still talks about how its making money because of some pathetic sound blaster thats less than 5% of Creative's sales.
MY dear boy boy ,i nvr said that Mr SIM was making profits in e MP3 war.DONT make assumptions,i have no recollections of EVER SAYING DAT. AS A MATTER OF FACT,I SAID DAT HIS SOUND BLASTER ARE PULLING IN E PROFITS IMPLIES DAT HIS MP3 PLAYERS ARE NT VERI PROFITABLE

Creative fails to live up to MP3 hype
CREATIVE Technology has - and not for the first time - failed to deliver on its own hype.
By Wong Wei Kong , Business Times
25 Apr 2005
There was much fanfare last November when Creative Technology chief Sim Wong Hoo declared war in the MP3 market and zeroed his sights on US giant Apple Computer. Creative, said Mr Sim, wanted to seize 40 per cent of the global MP3 player market by this year - estimated at about 60 million units - by selling some 24 million digital music players.
It was an ambitious target, and while there were sceptics right from the start, it captured the headlines. For a while, Creative basked in the limelight, reporting strong sales and good reviews of its Zen Micro MP3 players. Mr Sim even took swipes at Apple: when Apple launched its iPod Shuffle in January this year, he laughed it off as a 'huge disappointment'.
In its latest financial results, Creative suffered a 72 per cent plunge in quarterly earnings as the fight for a share of the digital music player market exacted a huge toll on its profitability. While sales for the third quarter ended March 31, 2005 rose 65 per cent to a record US$333.8 million, Creative earned just US$1.1 million for the quarter, excluding investment gains, down from US$8.7 million in the previous year.
Sharp price cuts of Apple's iPod mini and the introduction of the iPod Shuffle - which Mr Sim had written off just a few months ago - pushed Creative's gross margins to 23 per cent, below its forecast of 27 per cent. Worse still, analysts pointed out, net margins were terribly thin at just above zero.
Strategy too hopeful?
Creative's response to the dismal earnings is to do more of the same: it will sell more and more MP3 players, hoping that the growth in sales will compensate for the fall in margins and profitability. There are holes in this strategy, however.
For one, while Creative has produced some of the strongest rivals to the iPod, Apple still leads the hard disk drive music player market by a wide margin. Analysts estimate that Apple, which shipped 5.31 million iPods in the March quarter, has a 60 to 70 per cent world market share. Apple has also encroached on Creative's market for MP3 players based on flash memory chips with the launch of the iPod Shuffle. The iPod Shuffle, now acknowledged by industry players as a masterly stroke, serves a sharp reminder that Apple wouldn't just sit pat and watch its market share slip away.
Second, sales growth may not be enough to make up for rapidly falling prices and profit margins in the MP3 market. To sell more in a fiercely competitive market, Creative will have to lower its prices. It would also have to respond to any price cuts by Apple. And Creative does not compete with Apple alone. Japanese, South Korean, Taiwanese and even Chinese companies are also gunning for a slice of the MP3 pie. Creative will have to constantly look over its shoulders as the likes of Sony Corp and Samsung Electronics stake their claims in the market.
I WLD LIKE TO UNDERLINE DIS PT (Worse still, analysts pointed out, net margins were terribly thin at just above zero.)-SHWS DAT HE IS LOSING $$$ IN E MP3 WAR
