“Computer audio equipment maker Creative Technology Ltd. said on Wednesday it would spend US$100 million in 2005 to market its MP3 players worldwide, in a bid to wrest share from arch-rival Apple’s popular iPod. ‘The MP3 war has started and I am the one who has declared war,’ Creative Chief Executive Sim Wong Hoo told a media briefing, adding the United States would get the biggest share of the $100 million budget, followed by Europe and Asia,” Reuters reports.
“Singapore-based Creative is fighting to expand its share of the fast-growing digital music market as its computer sound card business declines. ‘I’m planning to spend some serious money — I intend to out-market everyone,’ Sim said at the launch of the company’s new five-gigabyte hard-disk, palm-sized Zen Micro player,” Reuters reports. “Creative is targeting a 40 percent share of the global MP3 market next year, up from 10 percent in the June quarter, Sim said. Apple held a 17 percent share in the June quarter.”
“‘We’re targeting (sales of) more than 1 million MP3 players a month in the current quarter and we are on track. It’s our target to beat iPod in this quarter,’ he added. Creative said it expected the MP3 player market to reach 30 million units in 2004, and more than double to over 60 million units by next year.”
Full article here.
MacDailyNews Take: 1 million players a month will not beat iPod in this quarter. Ain’t gonna happen. Apple’s internal estimates hover around 4 million units, so even if Creative did outperform and sell 1 million per month, they’d still be about a million units short. It’s best not to declare a war you can’t win. And, Creative’s going to “out-market” Apple? Sim Wong Hoo must be crazier than Steve Ballmer at a Microsoft Developer Conference.