“MP3 player maker Creative Technology failed to outsell Apple’s iPod during the holiday sales season, it emerged today when the company published its financial results for the period. Apple last week said it had sold 4.5 million iPods in the three months to 31 December 2004 more than double the 2 million Creative today admitted it sold during the period, which equates to the second quarter of its FY2005,” Tony Smith reports for The Register. “Clearly, Creative is not winning the war it declared against its rival last November. Back then, Creative chairman and CEO Sim Wong Hoo bullishly said: ‘It’s our target to beat iPod in this quarter.'”
“‘The MP3 war has started and I am the one who has declared war,’ he thundered at the time, adding that the company was on track to sell 3 million MP3 players during the Christmas quarter. He also pledged to spend $100m to out-market Apple. And, in a spirit of ‘if you can’t beat ’em, join ’em’, Hoo is looking to his rival to help boost his own sales. ‘Apple’s entry into the Flash [player] market will create more awareness in the Flash market segment, and we are well positioned to become a big beneficiary of this expanding market,’ he said today,” Smith reports. Full article here.
“Sim Wong Hoo said: ‘I believe we are extremely well positioned against the flash products and pricing that were recently announced by Apple, as we have superior features and broad product lines that span the entire category. I also believe that Apple’s entry into the flash market will create more awareness in the flash market segment, and we are well positioned to become a big beneficiary of this expanding market. We are going to continue our aggressive marketing and improve our already strong market position, and we are targeting to grow revenue substantially in the third quarter on a year-over-year basis by 50 per cent,'” Macworld UK reports. “However, describing the increasingly competitive market for such devices, DBS Vickers Securities analyst Don See told Reuters: ‘We do not believe Creative has the edge or resources to maintain its market share.'” Full article here.
MacDailyNews Take: Sim Wong Hoo, known affectionately around here as the “Edward John Smith of Creative,” really needs to take a look at how many of his “2 million” (un)Creative units were returned by those who actually asked well-meaning (but electronically illiterate) Grandma Edith specifically for Apple iPods and iPod minis. “Thanks Grammy Edie for the digital lump of coal!” We’d like to see the number of Creative units returned the week after Christmas. We bet it’s pretty high. Creative is an ant that’s “extremely well positioned” right in front of Apple’s steamroller.
Related MacDailyNews articles:
Creative CEO: Apple iPod shuffle ‘a big let-down, worse than the cheapest Chinese player’ – January 12, 2005
Creative declares ‘war’ on Apple iPod, shoots for 40% market share of MP3 players – December 21, 2004
Creative Technology declares ‘MP3 War’ against market-dominating Apple iPod – November 17, 2004
Mossberg: Dell, Rio, Creative ‘iPod mini killers’ lag badly behind Apple iPod mini – October 27, 2004
Creative pushes to become ‘Pepsi’ to Apple’s ‘Coke’ in digital music player market – August 07, 2004