Beleaguered Creative Technology circles the bowl

“Singapore’s Creative Technology Ltd., whose Nomad and Zen MP3 players compete with Apple’s iPod, probably swung to a quarterly loss, hit by tough competition, falling prices and inventory write-downs. Creative is likely to stay in the red in coming quarters and suffer a weaker balance sheet as it grapples with excess stockpiles and intensifying price competition in the digital music player market, which is dominated by Apple Computer Inc.,” Jennifer Tan reports for Reuters in the hilariously headlined article “Apple-rival Creative seen swinging to Q3 loss” (Creative rivals Apple as a 3.5 oz Snack Pack chocolate pudding rivals a 30-ton Sherman tank).

Tan reports that CIMB-GK Securities analyst Jonathan Ng said, “We remain negative on its prospects given the harsh competition in the market and a lack of new winning products in the foreseeable future.”

“Creative is expected to report on Wednesday that it has swung to a net loss of about US$90 million for the three months ended March 31, its fiscal third quarter, a poll of five analysts by Reuters showed. This compares with a profit of $1.1 million a year ago, excluding a one-off $14.8 million investment gain, and a $1.3 million profit in the December quarter. While Creative struggles, Apple last month posted a 41 percent jump in quarterly profit that beat Wall Street forecasts, and said sales of its iconic iPod player topped 8.5 million,” Tan reports. “‘With two-thirds of revenue derived from the highly volatile personal digital entertainment segment, we anticipate Creative will need to take further restructuring charges to right-size its operations,’ said Macquarie Research analyst Patrick Yau. The company’s net debt position will also worsen in the coming quarters, as its aggressive marketing spending and rising working capital needs eat into its cash balance, Citigroup Research analyst Pratik Gupta said.”

Full article here.
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Related articles:
Beleaguered Creative Technology reports largest operating loss in at least five years – April 10, 2006
Joke of the Day: Red Herring headline: ‘Creative may be iPod threat’ – February 28, 2006
S&P Equity downgrades Creative Technology, cites ‘increased competition from Apple Computer’ – February 14, 2006
Apple unveils new 1GB iPod nano for $149; iPod shuffle now starting at just $69 – February 07, 2006
Beleaguered Creative reports 95-percent slump in quarterly profit – January 26, 2006
Don’t call them podcasts! Derivative, er, Creative introduces ZenCast app for ‘audio & video blogs’ – January 04, 2006
Creative’s Zen Vision:M green with Apple iPod envy – December 09, 2005
Apple faces prospect of bruising iPod patent dispute from Creative Technology – December 09, 2005
Creative Technology’s official press relase for Zen Vision:M Apple iPod knockoff – December 08, 2005
Creative’s Sim Wong Hoo vows to ‘aggressively pursue’ Apple over iPod patent – December 08, 2005
Creative announces 30GB Zen Vision:M video-enabled ‘iPod killer’ – December 07, 2005
Beleaguered Creative waves white flag, surrenders self-declared MP3 player war to Apple iPod – November 07, 2005
Beleaguered Creative shifts promotional efforts from music players to new sound card line – September 21, 2005
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


  1. “Beleaguered Creative Technology circles the bowl.”

    Soon they’ll be less of a drain and looking less flushed and tanked with exhaustion. So really, they should just pipe down and put a lid on it.

  2. Apple should buy Creative and put it out of its misery. That would give Apple the extra real estate and manpower for a Singapore plant, distribution channels in the far East, and a way of getting all those with current Creative hardware to switch to iPods.

  3. …getting all those with current Creative hardware to switch to iPods.

    All three of them? Should Apple dare to dream so wildly?

    Apple sells more iPods every 6 weeks than Creative sold all last year.

  4. You don’t know the history of Creative’s MP3 players; I do.

    I love this motif.


    I wish MDN would not allow comment posts on non mac related articles. I mean i know this is market and competition related. But come one people, this is rat’s ass material here. this is inevitable, the downword spiral of any iPod competitor.

    Can’t we at least revive some newton scrap from the bottom of the barrel?

    I may have flunked spelling, but i’m still the professor!

  5. “Apple should buy Creative and put it out of its misery.”

    Why pay for it when you can get it for free? Apple just needs to wait another quater or so and they’ll get all of Creative, it’s user base, its employees even, without spending an additional dime.

    Heck, if Apple opened a plant there now, I think half of Creative’s work force would come running.


    Those basterds through 3DLabs (they own it) have for years refused to make a Mac version of their powerful video cards.

    The moderators and even the company staf would laugh if a Mac user suggested or asked.

    I hope the company goes bankrupt and Apple buys 3DLabs.

  7. @ Youlli:
    Correct you are. But remember that iTMS is not everywhere. It is in some countries and not ALL countries. Where iTMS doesn’t exist, iPods have a much smaller market share than in places like the US and Europe. Creative isn’t the only one out there in these places, but it IS there.
    If Apple grabbed that market, that would lead to a greater degree of world domination from a “geographic” point of view.

    hmm, did I just type “world domination”?, got to think about that. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

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