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Creative CEO: Apple iPod shuffle ‘a big let-down, worse than the cheapest Chinese player’
Wednesday, January 12, 2005 - 10:36 PM EST

Creative says it has sold more than two million MP3 players last quarter. "While the Christmas season is over, Creative believes that demand will still be strong, and plans to continue with its production momentum this quarter," Connie Tan reports for Channel NewsAsia.

Tan reports, "Over at MacWorld, Apple Computer has launched a new iPod digital music player costing as little as US$99. Chief executive Steve Jobs said Apple had sold 4.5 million units of its blockbuster iPod in the last quarter, almost double that of its nearest competitor, Creative's Zen Micro. But Creative's CEO Sim Wong Hoo says Creative is not worried about the new flash player from Apple eating into its market share."

Said Mr Sim, "Actually, to me it's a big let-down: we're expecting a good fight but they're coming out with something that's five generations older. It's our first generation MuVo One product feature, without display, just have a (shuffle feature). We had that -- that's a four-year-old product.

"So I think the whole industry will just laugh at it, because the flash people -- it's worse than the cheapest Chinese player. Even the cheap, cheap Chinese brand today has display and has FM. They don't have this kind of thing, and they expect to come out with a fight; I think it's a non-starter to begin with."


Full article here.

MacDailyNews Take: Whatever. One question: how many of the Creative players were considered "digital lumps of coal" and returned so that people could go get the Apple iPods they really wanted?

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Jan 13, 05 - 09:51 am Comment from: rorschach

"Two million"? It was probably more like just 2 after they were all returned. wink

Jan 13, 05 - 10:39 am Comment from: zupchuck

The iPod shuffle is interesting. How much is a 512MB or 1GB thumb drive? About $40 less than a iPod shuffle. For $40, you get some great integration. I think of it as a thumb drive with extra features. Personally, I think this is the best value yet in an iPod (until you can directly download photos off a digital camera into a hard drive-based iPod).

As others have said here, it's the integration that Apple gets right and turning the seemingly complex into something magically simple. The other guys don't get it or do it.

I hope the quality and durability of the iPod shuffle is up to snuff. I'm quite curious how fragile the headphone socket is over time. I guess if it breaks, you still have a thumb drive...

Jan 13, 05 - 11:07 am Comment from: Match all you want!

"Whatever Apple creates in hardware, they'll easily match in price, quality, et al (it's all made in the Far East, folks)."

Yeah, they've been matching Apple for like 3 years now and even adding MORE features. Poor Apple hasn't stood a chance and will probably be getting out of the MP3 market.

Me: Don't you think Creative would make great iPod accessories?
Guy: Creative?
Me: Yeah, you know, that company that USED to make MP3 players?

Jan 13, 05 - 11:30 am Comment from: chuckie c

Sour grapes anyone?

Jan 13, 05 - 11:43 am Comment from: Al

Idiot! Every MP3 player ever made including the iPods are Chinese.

Hardware can be good but if the software has been anywhere near Redmond you have a major problem.

Jan 13, 05 - 12:12 pm Comment from: rageous

As much as I love Apple, personaly I think the shuffle would be a pain in the a$$. Not being able to play the song i want when i want. Sitting there hitting the play button at a party until the right song plays. I guess thats what the HD models are for though. We all have different needs/situations. Just my 2 cents...

When you sit in front of iTunes, make a playlist containing only songs you a) like and b) want to hear, and then load that playlist onto Shuffle, how are you going to run into a song you don't want to hear? That's not Apple's fault, that's your fault for being too dumb to even load songs you like onto a low capacity flash player.

Jan 13, 05 - 12:30 pm Comment from: ha!

i know we are supposed to just blindly bash anyone who talks bad about apple...

but

he does make a valid point. in the realm of flash players, the iPod shuffle isn't innovative. the ONLY thing it has going for it is iTunes itself.

now i realize that iTunes is a big thing to have going, i sure wouldn't use any MP3 player that didn't use iTunes. But. But. This doesn't change the fact that the shuffle lacks features other flash players have. His statement is simple - Creative did this same thing four years ago, he expected more out of Apple.

now we can argue if those features are needed (like the Archos and that stupid 1.5 inch movie screen). but that would be another issue.

oh, and Tera rocks.

Jan 13, 05 - 01:59 pm Comment from: prut prut

totally disagree 'ha!'-- first off, if anyone wants those other features--simple, move up to the ipod mini. If you just wanna load-n-go, get the shuffle. I also disagree w/ those who say the the shuffle isn't innovative-- it's a fantastic idea. Nix the clutter--cheaper, simpler alternative-- and gives you a stream of random tracks OR continuous (as defined from itunes playlist). $99..

Jan 13, 05 - 03:23 pm Comment from: Huck

This Creative guy is quite the trash-talker! I would hate to see Jobs say something in public about Creative, because he could just eviscerate the guy's claims.

It seems pretty clear at this point that Creative's main strategy for gaining market share is not actually manufacturing or marketing, but to say outrageous things about Apple, and get covered simply for doing so.

I'd love to know how much of that $100 million he was going to spend on Creative advertising will actually get spent this year--because I, for one, have seen about 15 iPod ads in different places in the last two weeks and none for Creative (like, ever?). On the other hand, I've read lots of stories about how Creative is 'at war' with Apple, so I guess free coverage beats paying for it.

When the iPod Shuffle starts to snuff other flash players' market share, will people finally start to take account of what a loon the Creative CEO seems to be? Or will he still get quoted with a straight face? Because he clearly doesn't understand what makes a successful consumer-electronics device, and should be selling computers instead.

Jan 13, 05 - 03:57 pm Comment from: ha!

the shuffle isn't inovative. what IS innovative is the combination of a flash based mp3 player and iTunes. think about it this way, if Creative had come out with this (which they did, four years ago, abet a smaller drive size) would you go "OH WOW THAT THING ROCKS!" no, you'd be like, eh, whatever.

it is an iPod, which means it will sell, it works with iTunes, which means i want one, but it is not innovative. though, surprisingly, it is inexpensive for what you are getting.

Jan 13, 05 - 04:23 pm Comment from: bree

There's a problem with Creative's math here. They sold two million, right? ok fine. But they also sell 25 models. Twenty-five. Only five of them are hard drive based. Assuming that sales are equal for each model, which is a huge stretch, they only sold 400k hard drive players. woops.

Jan 13, 05 - 04:53 pm Comment from: John Dvorak

Hey, John,

The iPod Shuffle did not sell out in two hours at the Apple Sore in S. F. 2,000 of them sold in 15 minutes! That's how fast the store sold out. I was there!

Jan 13, 05 - 05:23 pm Comment from: macman

"Mr. Jobs draws a lot of water in this town, Lebowski. You don't draw sh!t."

Jan 13, 05 - 11:07 pm Comment from: JKPinPDX

iPod shuffle will make alot of people skinny... HOW? Simple... People will buy it JUST SO THEY NOW HAVE A REASON TO WORK OUT! rolleyes

Jan 14, 05 - 02:00 am Comment from: bd

I just heard that the Ipod shuffle sold 20,000 units in 4 hours from 1 store!!!!! The San Fran Store. One person bought 24, many bought 2-4-5. Unbelieveable!!

Jan 14, 05 - 06:05 pm Comment from: fandango

Hey bd,

If that's true, then Sim Wong Hoo won't be laughing six months from now. On the day of the keynote, when Steve first introduced these things, I commented that Creative and Rio were probably busy changing their shorts when they heard the announcement.

I think that this is probably just a case of S.W. Hoo spreading FUD.

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