[News] Creative sinks into red, struggles against iPod
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Creative sinks into red, struggles against iPod
10 August 2006 1148 hrs (SST) 0348 hrs (GMT)
SINGAPORE - Creative Technology said Thursday it slipped into the red for the year to June as the digital entertainment products maker continued to struggle against Apple's iPod in the MP3 player market.
The Singapore-listed firm chalked up an annual net loss of 118.2 million US dollars compared with a 588,000 dollar profit in the previous year, amid market forecasts for a full-year loss of 128.7-140.0 million dollars.
Despite the full-year loss, Creative was upbeat the company could return to profitability by the end of 2006 amid ongoing efforts to trim expenses and hopes of a boost from the launch of new products.
"During the fourth quarter, although we posted a loss for the period and for the year, we made progress towards our goals," said Craig McHugh, president of Creative Labs Inc.
He also pointed out that operating expenses were reduced by 17 percent from the previous quarter.
"Based on our progress in the fourth quarter, our focus on reducing our operating expenses, and the market potential for our products, we are targeting our return to profitability by the end of this calendar year and continued profitability going forward," he said.
Sales in the year to June totalled 1.13 billion dollars, down from 1.22 billion dollars in the previous year.
For the fourth quarter ended June, Creative narrowed its losses to 12.7 million dollars from 31.9 million dollars last year, partly due to a 10-million dollar tax writeback.
Founded in 1981, Creative gained global fame for its SoundBlaster card that allowed personal computers to be used as home entertainment units but it has struggled recently after venturing into consumer electronics.
Creative has targeted the MP3 player market as a key to growth but has found it difficult to match Apple's iconic iPod which dominates sales in the crucial US market.
At 10:45 am (0245 GMT), shares of Creative were trading at 8.70 Singapore dollars (5.54 US) each, up five cents from its close on Tuesday. Financial markets in Singapore were closed Wednesday for a public holiday. - AFP/ir -
Originally posted by ^tamago^:
Even if ipod lose the case, creative will still suffer a very great loss.
[b]Creative sinks into red, struggles against iPod
10 August 2006 1148 hrs (SST) 0348 hrs (GMT)
SINGAPORE - Creative Technology said Thursday it slipped into the red for the year to June as the digital entertainment products maker continued to struggle against Apple's iPod in the MP3 player market.
The Singapore-listed firm chalked up an annual net loss of 118.2 million US dollars compared with a 588,000 dollar profit in the previous year, amid market forecasts for a full-year loss of 128.7-140.0 million dollars.
Despite the full-year loss, Creative was upbeat the company could return to profitability by the end of 2006 amid ongoing efforts to trim expenses and hopes of a boost from the launch of new products.
"During the fourth quarter, although we posted a loss for the period and for the year, we made progress towards our goals," said Craig McHugh, president of Creative Labs Inc.
He also pointed out that operating expenses were reduced by 17 percent from the previous quarter.
"Based on our progress in the fourth quarter, our focus on reducing our operating expenses, and the market potential for our products, we are targeting our return to profitability by the end of this calendar year and continued profitability going forward," he said.
Sales in the year to June totalled 1.13 billion dollars, down from 1.22 billion dollars in the previous year.
For the fourth quarter ended June, Creative narrowed its losses to 12.7 million dollars from 31.9 million dollars last year, partly due to a 10-million dollar tax writeback.
Founded in 1981, Creative gained global fame for its SoundBlaster card that allowed personal computers to be used as home entertainment units but it has struggled recently after venturing into consumer electronics.
Creative has targeted the MP3 player market as a key to growth but has found it difficult to match Apple's iconic iPod which dominates sales in the crucial US market.
At 10:45 am (0245 GMT), shares of Creative were trading at 8.70 Singapore dollars (5.54 US) each, up five cents from its close on Tuesday. Financial markets in Singapore were closed Wednesday for a public holiday. - AFP/ir [/b] -
Their zen micro? the smallest mp3 player in the range, my sis regretted buying that.
Lousy sound quality, quite shocking when you think about how well their pc sound systems sound.
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HAHA.
Actually serves Creative right.... -
hey this news was like months ago ?
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Creative has got their entire market plan wrong! Look at the way they slash prices. They thought people would go for their mp3, but totally forgot about their customer service.
Apple has always maintain a straight price range through out and their customer service is superb! -
talk cock lah you. MOnths ago was quarterly results.Originally posted by forfun_cash:hey this news was like months ago ? Now its full year financial results. -
is creative actually that bad!?
i got their mp3,soundcard,and desktop speakers all are working fine..
so customer service dosen't mean much to me as they doesn't spoil.and btw is creative customer service bad?2 outlets had been opened at such good locations also quite fang bian mah. -
got meh..Originally posted by chenc:Creative has got their entire market plan wrong! Look at the way they slash prices. They thought people would go for their mp3, but totally forgot about their customer service.
Apple has always maintain a straight price range through out and their customer service is superb!
i email em since 2 weeks ago noone reply.
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oh ya horOriginally posted by shade343:talk cock lah you. MOnths ago was quarterly results. Now its full year financial results. 
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Actually not quite. They probably need to re-think their strategies. Identifying that consumer electronics is a growth sector isn't wrong, but their approach to it was wrong from the start. They shouldn't have said about waging war with iPod.Originally posted by missqi:HAHA.
Actually serves Creative right.... -
Is there product really so bad in the first place? For their sound blaster range i would say no problem with that. Been using their sound card for few years liao. No problem with it...
As for their mp3 player. I have been a creative fan. When their zen mirco first came out. Without thinking i buy it rather than i-pod.. but turn out quite a disappointment.. Sound quanilty is good..but bad point is that..lotta of problem with it.. I have RMA is at least 2 time for 1 yr le..
I still dun understand why i-pod sell better than zen mirco.. all their zen look quite nice in the first place too.. -
I used to support Creative, but it was due to their crappy MP3 players that made me change my mind. Stupid thing got spoilt in 6 months, got it replaced, and it got spoilt again 3 months later, got it replaced yet again, and it spoilt again like 10 months later and I bought myself an Ipod Nano.
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Hmmm.Originally posted by ndmmxiaomayi:Actually not quite. They probably need to re-think their strategies. Identifying that consumer electronics is a growth sector isn't wrong, but their approach to it was wrong from the start. They shouldn't have said about waging war with iPod.
I think they were too ambitious....
From the start.
Not that their LOUSY mp3 players can beat Apple's.
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Why singaporeans cannot singaporeans ah? All want ang moh made in china products.
At least creative stuff made in malaysia. -
From the moment Sim Wong Hoo decide to sign his autograph on the Zen Player, everything goes downhill.
The approach, as said, is totally wrong. Still, the success of iPod and failure of Creative is a good case study for anyone to study about the power of marketing. -
Technically, buying an iPod or a Creative makes no much difference to local economy. Both made in other countries, both employed overseas team to develop the technology. Funny these days people still believe buying Creative is a support for local product.Originally posted by shade343:Why singaporeans cannot singaporeans ah? All want ang moh made in china products.
At least creative stuff made in malaysia.
Do you think Sim made his own Zen? Lol, his entire Creative Lab team is also made up of and mohs -
Creative can't do it like iPod, offer songs.Originally posted by CoolMyth:From the moment Sim Wong Hoo decide to sign his autograph on the Zen Player, everything goes downhill.
The approach, as said, is totally wrong. Still, the success of iPod and failure of Creative is a good case study for anyone to study about the power of marketing.
They don't have enough capital. Next solution? Autographs, though it didn't work. -
The Creative vs iPod debate has been ongoing ad nauseum.
The bottom line is all about marketing. Apple marketed their iPods as something trendy and fashionable to have - and its visually appealing asthetics pander to the masses.
Creative, on the other hand goes on and on harping about how their players are better and cheaper than iPods without focusing on what the consumers want - trendy, reliable MP3 players.
And I think sueing Apple is a really bad idea - it brings about the impression that they're getting desperate. -
Really true. When I first read the article about Creative sueing iPod, its like : Why? I though Creative was very confident about winning iPod's market? A bit like a sore loser now.Originally posted by fudgester:The Creative vs iPod debate has been ongoing ad nauseum.
The bottom line is all about marketing. Apple marketed their iPods as something trendy and fashionable to have - and its visually appealing asthetics pander to the masses.
Creative, on the other hand goes on and on harping about how their players are better and cheaper than iPods without focusing on what the consumers want - trendy, reliable MP3 players.
And I think sueing Apple is a really bad idea - it brings about the impression that they're getting desperate.
Btw, the article I saw is a short one. Is the case about Creative claiming that iPod is using their firmware design? -
Though I've not been really following up on this news, I'll rather buy Creative's Product cause working fine for me.
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creative? gagagagagagaga
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do not buy their latest mp3 player zen-v.
mine got spoilt on the eighth day, sent for service. say they gonna do a replacement. 21 days later, still no reply.
CRAP customer service.
I wouldn't be surprised if they make losses at the rate they are going.
I already wrote a complain letter, and they haven been doing much..
http://www.sgforums.com/?action=thread_display&thread_id=204368 <=- the complain letter -
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Originally posted by ^tamago^:
I don't support Creative especially after they are suing Apple for their iPod. On the other hand, Apple signed deal with various car manufacturer to add iPod to their cars audio system, leaving Creative in the dust. Way to go Apple!
[b]Creative sinks into red, struggles against iPod
10 August 2006 1148 hrs (SST) 0348 hrs (GMT)
SINGAPORE - Creative Technology said Thursday it slipped into the red for the year to June as the digital entertainment products maker continued to struggle against Apple's iPod in the MP3 player market.
The Singapore-listed firm chalked up an annual net loss of 118.2 million US dollars compared with a 588,000 dollar profit in the previous year, amid market forecasts for a full-year loss of 128.7-140.0 million dollars.
Despite the full-year loss, Creative was upbeat the company could return to profitability by the end of 2006 amid ongoing efforts to trim expenses and hopes of a boost from the launch of new products.
"During the fourth quarter, although we posted a loss for the period and for the year, we made progress towards our goals," said Craig McHugh, president of Creative Labs Inc.
He also pointed out that operating expenses were reduced by 17 percent from the previous quarter.
"Based on our progress in the fourth quarter, our focus on reducing our operating expenses, and the market potential for our products, we are targeting our return to profitability by the end of this calendar year and continued profitability going forward," he said.
Sales in the year to June totalled 1.13 billion dollars, down from 1.22 billion dollars in the previous year.
For the fourth quarter ended June, Creative narrowed its losses to 12.7 million dollars from 31.9 million dollars last year, partly due to a 10-million dollar tax writeback.
Founded in 1981, Creative gained global fame for its SoundBlaster card that allowed personal computers to be used as home entertainment units but it has struggled recently after venturing into consumer electronics.
Creative has targeted the MP3 player market as a key to growth but has found it difficult to match Apple's iconic iPod which dominates sales in the crucial US market.
At 10:45 am (0245 GMT), shares of Creative were trading at 8.70 Singapore dollars (5.54 US) each, up five cents from its close on Tuesday. Financial markets in Singapore were closed Wednesday for a public holiday. - AFP/ir [/b]