“Creative Technology made lots of noise last November, when it unveiled two new MP3 players that it predicted would help it take 40 percent of the global market this year. But, analysts say, despite spending about $100 million to promote its MuVo and Zen models, the company’s market share is still around 10 percent (compared with Apple’s 70). Creative posted a $31.9 million loss in its most recent quarter, and though it recently won a patent battle with Apple (AAPL) over iPod’s track selection technology, many feel it may be too late to break Apple’s stranglehold. Tellingly, Creative has begun shifting its promotional efforts toward its new line of sound cards,” Elizabeth Esfahani and Georgia Flight write for Business 2.0.
[Note: Creative has just 2.4 per cent of the U.S. flash-based music player market, according to NPD, which is relevant because this is the direction market-dominating Apple appears to be taking the digital music player market, as evidenced by the release of the flash-based iPod nano and the discontinuation of the hard drive-based iPod mini. Creative was recently awarded a patent that may or may not be applicable to Apple’s iPod. See related articles below.]
Full article here.
[UPDATE: 6:22pm ET: Rewrote note to explain mention of Creative’s flash-based market share and clarify patent issue.]
Related articles:
Apple debuts iPod nano, iTunes 5: how are Microsoft, Napster, Real, Creative, Sony feeling today? – September 08, 2005
Creative explores new way to beat Apple iPod: patent litigation – August 30, 2005
Creative plans ‘very vigorous defense’ of iPod navigation patent – August 31, 2005
Beleaguered Creative Technology’s ‘war’ on Apple iPod not faring well – August 15, 2005
Apple’s iPod shine dims beleaguered Creative Technology’s outlook – August 08, 2005
Microsoft not buying stake in Creative Technology – August 02, 2005
Creative CEO Sim Wong Hoo adds fronts to war against Apple iPod – August 01, 2005
Analyst: Microsoft could buy Creative Technlogy in bid to compete with Apple iPod – July 14, 2005
Beleaguered Creative CEO Sim Wong Hoo ‘optimistic’ the company will survive ‘MP3 war’ – July 01, 2005
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
Apple’s understanding of what really counts makes iPod+iTunes impossible to beat – June 22, 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
Did Creative win the patent battle?
Creative didn’t win anything with regard to the alleged “patent battle.” They simply obtained a patent on a method of track selection which may, or may not, be infringed by the iPod. This has not been claimed by Creative yet, nor defended by Apple. As there was no fight, there was no battle, and thus they’ve won nothing. They’ve simply “gained” a patent, and not necessarily at Apple’s expense.
I hate it when journos get their facts skewed like this.
Sandisk is #2 at 6.9% share.
Creative is dead.
Looks like I’m first post. Big deal.
The battle hasn’t actually started yet.
what about the war?
<< Creative didn’t win anything with regard to the alleged “patent battle.” They simply obtained a patent on a method of track selection which may, or may not, be infringed by the iPod. This has not been claimed by Creative yet, nor defended by Apple. As there was no fight, there was no battle, and thus they’ve won nothing. They’ve simply “gained” a patent, and not necessarily at Apple’s expense. >>
Right you are. The worst that will happen from Creative’s patent, is that Apple will buy it, and Creative will exit the player market as part of the deal.
who buys sound cards anymore? Integrated audio is here to stay.
*thoomp* *thoomp* *thoomp*
Another one bites the dust-uh!
To Greg:
Look again…
big deal.
Seriously, who the fsck DOES buy sound cards anymore?
While I jumped off the sinking Windows ship only about 7 months ago, I had previously been building a new PC, or upgrading my existing one for about 12 years… In that time, ibought every major supported brand of sound card made until about thee or four years ago, when integrated on-board audio finally caught up, and in most cases, easily outdid any add-in card.
For that matter, since about 2000, I had built about 500 or so computers (for clients) ranging from low-end, basic machnes, to top of the line game-machines and CAD workstations, and not a single one didn’t come with excellent built-in sound.
Creative is a redneck zombie… dead as a doornail, but too stupid to comprehend the concept.
MW – certain, as in I am certain of this!
“…despite spending about $100 million to promote its MuVo and Zen models…”
Has anyone here actually SEEN a Creative commercial? (Magazines don’t count.) No matter how much money Cratering has spent, not (MW) many of us have seen what they got for it.
If Creative sues Apple they also are including Cingular and Motorola and other like interface designs.
Tommo and Gregg have it right. Creative didn’t win any “battle” over the patent. They were simply granted a patent, which could just as easily be overturned in the future.
I guess this is a fine example of the “lazy reporting” that Steve Jobs was talking about in his interviews with the media at Apple Expo Paris.
I, for one, would like to see Creative bite and try to sue Apple over the patent. It should also sue Apple for using the name “iPod nano.” After losing more than $30 million last quarter, there would be nothing better than for creative to spend another $10-20 million and man-years of effort filing lawsuits that have little chance of winning. And if it happens, watch Apple lawyers flood Creative with hugely expensive discovery requests.
Yep, that would be fun to watch, as lawyers suck on Creative’s cash flow to buy themselves Ferraris. No need to actually develop great products, the lawyers will save the day!
Not.
Who buys sound cards? Gamers, audio professionals, people with motherboards that don’t have integrated audio.
You know – Geeks!
BTW, great use of beleagured in the headline! It had a nice ring to it.
Oh wait, that’s my iRokkor…
I have to buy an external soundcard since apple didn’t think spdif was something usefull to put in my 15″ pb 🙁
for stationary computers though, I agree that seperate soundcards are dead
Looks like I’m first post!
Seriously, the only thing Creative about spending $100M advertising an infrerior product against Apple is the market share projection – 40% Globally – for the MuVo and Zen players? Please… the best thing they have going for them is an FM radio – and with no good music store/software integration, its a no brainer why they are looking at what they DO know, high end audio cards. (Who didn’t have a Sound Blaster back in the day? – That’s Creative you know!)
MDN word: way
Plus, from Paris, Steve said that the reporting on that subject has been “lazy.” There’s apparently a lot more to the story than what’s being reported and a few tricks Apple legal still has up its sleeve.
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They are a mid level electronics company that supplied commodity level sound cards for mass consumption. Professional audio engineers have far better options available to them than some Creative card.
Again, Creative suffer due to lack of software. High end cards utilize or require high end apps, and Creative doesn’t provide either function!
CREATIVE COULD MAKE A KILLING MAKING SOME BRILLIANT IPOD ACCESORIES! – TAKE SOME OF THE STUFF THEY WERE DOING WITH THEIR OWN PLAYERS THAT WERE SECOND RATE AND DEVELOP THEM AS ALL PURPOSE ACCESORIES!!!!
IF YOU CANT BEAT THEM JOIN THEM!!
Finally… Creative starting to do something right.
That Creative Zen Micro thingamajig is a hideous looking beast. It’s funny to read anti-iPod zealots write about the Zen as if it is the best MP3 player ever. Let it go and get a nano. Color screen, no moving parts, “cool” factor, Apple quality, great price, cross-platform – what is there NOT to love about the iPod?
Sorry, Creative. Go declare war with yourself, or Sony or Dell – someone you can compete with.
Right you are bad news bear:
Creative could have been a fine Apple partner about 5 years ago. They had a golden opportunity when Apple briefly discontinued built-in sound, but blew it with that POS Soundblaster for Mac card. With no support from the company, it was doomed to fail from the beginning. Thank goodness others were willing to step into the niche and provide decent products.
Creative is reaping what they sowed.
actually, I have a killer sound card for my G4. It lets me run my mixer right into the Mac, and the stereo outs plug into my regular Onkyo receiver or my 4-track, if I so desire. It’s the move for recording guitars/vocals/basslines, etc. I generally disdain digital recording, but it has it’s uses…
Creatives Sound cards blow away any other cards on the market. Once X-Fi is RTM for portables (soon)..Creative will reign because apple will be forced to use the chip…Your right, If you cant beat them in the crappy player market..Screw em with better sound..Apples iPod wont last long once its out…Unless the license it from creative…
Most of you have no idea what Creative makes..Their products are top notch.
http://www.tomshardware.com/consumer/20050818/index.html
When did Apple briefly discontinue sound? Was I asleep?