Beleaguered Creative Technology suffers third straight quarter of losses

“Singapore-based Creative Technology, the maker of Nomad and Zen digital music players, suffered losses for the third quarter running,” Channel NewsAsia reports.

“Creative reported a net loss of US$21 million in its fiscal first quarter ended September 30,” CNA reports. “First-quarter sales fell 14 percent to US$241.5 million, as Creative struggles in a competitive market dominated by Apple Computer’s iPod.”

CNA reports, “Creative expects a payment profit of US$82 million in the fiscal second quarter on a US$100 million licensing payment from Apple as part of a settlement.”

Full article here.

Related articles:
Creative does Apple’s dirty work by immediately attacking Microsoft’s Zune – September 17, 2006
Creative Tech: we will pursue all MP3 player- and cellphone-makers that infringe on ‘Zen patent’ – August 30, 2006
Apple investors cheer as Jobs wins again by getting Creative – August 24, 2006
Apple and Creative settle – the bigger picture – August 24, 2006
Analyst: Apple’s relatively small settlement with Creative removes threat hanging over iPod – August 23, 2006
Apple & Creative settle: Apple pays $100M for ‘Zen’ patent, Creative plans iPod accessories – August 23, 2006


  1. Sounds like a great time to buy a Zen Vision:M 60Gb.

    Apple’s great but… iPod won’t play enough formats. And I don’t really feel like buying all my content from iTunes. I’ve held out for as long as I can waiting for the new iPod.

  2. Now everyone (except for iPod buyers) is waiting for the Zune to come out before deciding what (non-iPod) MP3 player to purchase.

    Creative, on the front lines of the “war” between iTMS vs. “Plays for Sure” takes a round of “friendly fire” from Microsoft right in the back. It doesn’t look good for them, they will probably die a slow agonizing death.

  3. Expect Creative to do some creative patent squatting when Mr. Softie releases the Zune – the hierarchical navigation system for Zune may be in violation of Creative’s patent, which was the basis of Apple’s cash settlement last summer.

  4. Before someone asks why I think iPod doesn’t play enough formats… if it doesn’t play divx/xvid it’s just not worth geek money. It’s a Windows world and they use xvid (and unfortunately WMV)

  5. No body is worry or compiting against apple’s iPod. My be Microsoft is telling that crap just as a marketing, but get real, no body can compete vs iPod, even if they put money on lost as the Xbox. Xbox is competing against similar tech consoles and software, iPod has no similarities in hardware and software.
    Every time that some body says “iPod Killer” every one turns head arround, that is marketing, not inovation or competition.

  6. I just can’t bring myself to buy MP3s or movies/TV in download form. Therefore all my video content is in xvid or MP4 etc. So why buy an iPod that won’t play all those torrents without re-encoding? Believe me, I would love to buy a Divx iPod.

  7. @me

    So you’re saying since you refuse to buy music, tv shows, and movies through legal online sources you’d rather just illegally download torrents of pirated content?

    In other words, you’re disappointed that the iPod will not natively play your pirated content. Right…

    Well if you’re not willing to buy content in download form, buy the CD! Buy the DVD! Then you can use iTunes to rip the CD and a number of other free programs to rip the DVD into a format the iPod can play.

    Apple is not in the business of catering to pirates.

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