Beleaguered Creative CEO Sim Wong Hoo ‘optimistic’ the company will survive ‘MP3 war’

“Singapore’s Creative Technology Ltd. intends to maintain its business focus, even as it faces increasing competition in the MP3 player segment from industry giant Apple Computer Inc. (AAPL), a senior company official said Friday,” Dow Jones reports. “Creative will ‘stay focused’ on its business and intends to ‘fight this war we are facing now,’ Chief Executive Sim Wong Hoo said at an industry conference, adding that he is ‘optimistic’ the company will survive the ‘MP3 war.'”

“‘If you can survive … you will one day hit the jackpot,’ he said, without elaborating,” Dow Jones reports. “The company’s shares Friday closed 0.9% lower at S$11. It has fallen by about 55% so far this year… The Singapore company’s MP3 players, sold under the MuVo and Zen brands, are a distant No. 2 to Apple Computer Inc.’s iPod players. Creative is currently facing considerable pressure on prices. A spate of price cuts by Apple prompted Creative to reduce the price of its five-gigabyte Zen Micro MP3 player to S$398 from S$448 last year. Late last year, armed with a US$100-million advertising budget, Creative seemed reasonably optimistic it could duplicate Apple’s success in the digital music player market, even though few analysts at the time shared that optimism.”

Full article here.

MacDailyNews Take: Sim Wong Hoo is the best. In six short months, he’s gone from declaring “war” and vowing to capture 40% market share to being “optimistic” his company will “survive” his self-declared “war.” Sheesh.

Related MacDailyNews articles:

Beleaguered Creative may have to write off unsold stock as losses loom
– June 28, 2005
Creative Tech’s reduced outlook drags on Apple, PortalPlayer, SigmaTel – June 27, 2005
Creative Tech cuts sales outlook, drags Apple down in early trading – June 27, 2005
Apple passed 20 million iPods sold milestone in early June – June 24, 2005
Creative Technology shares slide to lowest mark in almost two years – May 18, 2005
Apple squeezes and Creative’s profit plunges 72-percent – April 23, 2005
Apple iPod pressure forces Creative to drop prices on music players – March 01, 2005
Creative’s self-declared ‘MP3 player war’ against Apple isn’t going very well – January 20, 2005
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

31 Comments

  1. “If you can survive … you will one day hit the jackpot”
    Or if you do manage to survive you may end up pumping quarters into the slots for eternity, never making any gains and wasting your time.

  2. ^
    From: Loooong wait for ShortHorn
    Jul 01, 05 – 09:10 am
    “Ha ha ha, now you are talking “How to survive” than ‘winning”. Losser!”

    Wow. You cannot spell OR write a coherent sentence.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.