S&P Equity downgrades Creative Technology, cites ‘increased competition from Apple Computer’

“Standard & Poor’s Equity Research analyst Megan Graham-Hackett downgraded shares of digital entertainment company Creative Technology to ‘sell’ from ‘hold’ citing increased competition from Apple Computer in the MP3 player market,” David Ng reports for Forbes. “The analyst sees Creative Technology facing a ‘challenging’ March quarter due to Apple’s product introductions in the lower-end MP3 market. Graham-Hackett lowered the price target on Creative Technology to $7 from $8, based on revised price-to-sales analysis.”

More in the full article here.

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19 Comments

  1. The media player SPACE is certainly large enough for multiple vendors to succeed. This is 100% the fault of Creative for not inovating and simply copying the iPod, adding and FM tuner, and dropping the price by $15 bucks.

    With current market position, there is an iPod for every budget, music collection, and feature set need. From mowing the lawn to commuting to carying an entire music collection to watching the latest reality TV on an airplane. Had creative focused on any ONE of those areas and innovated, they could have taken a piece of the action. Instead, their withdrawing from the market with a black eye.

  2. Oh Yeah! Apple’s really cutting into the sound card market! X-Fi cards are running scared now. Last time I checked, Creatives main cash cow were sound cards, modems and branded optical drives. They could drop their mp3 players today and not bat an eye.

    No Apple computer with its built in sound system can stand up to Creatives line of sound cards.

  3. The fly in the ointment is the anti-trust angle — not that I am suggesting that Apple is doing anything wrong. The losers in the mp3 player game are screaming for government help. And a SCOTUS that can pull a “Kelo” decision out of its arse has to be seen as a real threat to Apple.

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