Melanie Lee reports for Reuters, “Singapore’s Creative Technology, which makes digital music players…”
MacDailyNews Take: They do? Hoo knew?
Lee continues, “…has cut its workforce by 2,700, or almost half, after the firm sold its manufacturing unit in Malaysia… The jobs were axed in the 12 months ending June 30 last year and were reported in an annual filing on Dec. 31, the Business Times said.”
“Creative Technology reported a net loss of $32.2 million in the three months ending September 30 last year,” Lee reports.
MacDailyNews Take: That “Zen patent” money must be long gone by now.
Full article here.
MacDailyNews Take: So nice to see a story about good ol’ Derivative. We’d pretty much completely forgotten about them.
The MP3 war has started and I am the one who has declared war… I’m planning to spend some serious money. I intend to out-market everyone… Creative is targeting a 40 percent share of the global MP3 market next year. – Creative CEO Sim Wong Hoo, November 17, 2004
This is the way the “war” ends, not with a bang, but a whimper.
[Thanks to MacDailyNews Reader “James W.” for the heads up.]
I agree with the last three posters. I also remember the rolled eyes in the tech shops, the tearoom sniggers, the tech journalists preparing Apple’s grave, and years of obstruction from IT departments (I’m still encountering this).
Having once been made redundant myself as a result of management incompetence, I can entirely sympathise with any Creative staff facing job loss. And, yes, MDN’s commentary is frequently way over the top, but it needs to be put into the context of the crap Mac users have put up with for a long time.
This is good news for our beloved Microsoft. Creative’s exit just leaves more room for the vastly popular and dominating Zune. Where else can you listen to your extensive collection of Captain and Tennille, Paul Anka and The Carpenters.
Nothing can stop the mighty Zune now.
Your potential. Our passion.™
What a wonderfully diverse array of ideas everyone is putting forth, sure sign of a healthy site.
I empathize with those who say we should not be face rubbing and we should take the high road.
I also empathize with those who say, give it to them, for years Mac users have been abused and ridiculed, not only by CEOs but as pointed out, the so called journalists and by many Microscum users. A bit of payback is certainly well deserved.
There certainly is nothing wrong with doing both, something like sending Wong Hoo a Zune, it would be both an insult, and a gesture to move to a better way or even a challenge to get back to the drawing board and be a sustanable competitor, because yes competion is good, but now, finally people are starting to realize tht there has to be a certain level of quality, not only with the products but with the interface to those products. Frankly that is where Apple, by making the hardware and software has the edge.
It was a tough decision, and they were ridiculed for a long time for it (and still are) but it is proving to endure the test of time.
I also remember the rolled eyes in the tech shops, the tearoom sniggers, the tech journalists preparing Apple’s grave, and years of obstruction from IT departments (I’m still encountering this).
My boss still considers Apple an also-ran. Wasn’t that long ago when he commented, in all seriousness: “Apple? They’re still in business??”
That said, what’s bad for Creative isn’t necessarily good for Apple.
Let’s get through this recession first. If Apple makes it without layoffs or a crisis, THEN we can gloat.
Creative’s problems are exactly what Apple tries very hard to avoid, customer confusion and inventory control difficulty.
At one point a few years ago (back when CEO Hoo was make those grand declarations), I remember visiting Creative’s web site and counting how many different MP3 players they offered. Counting all the often hard-to-distinguish models and variations on specs it was over 30. If you counted the different case colors (most of them horrendous) as variations on specs, it probably would have been over 100. What customers Creative did have must have been confused about deciding the model to get, and it must have been a nightmare for Creative and its vendors doing inventory control on so many variations.
Apple does the exact opposite. When the iPod nano came out, the iPod mini (the most popular MP3 player at that time) was canceled. When the video-capable “fat-boy” nano came out, the old non-video “slim” nano was cancelled. Instead of keeping two capacities for the iPod classic, now there is only the 120GB capacity. About the only concessions to variation are multiple color choices, and customers usually do not have too much trouble picking a color after they have picked their iPod model.
Limiting product choices and options actually leads to better customer satisfaction, improves overall sales, and makes inventory control much more efficient. It’s yet another way that Apple is completely different from most of the competition, whether we are talking about the iPhone, iPod, or Mac.
I’m actually kinda on the fence about this guy (maybe ‘cos we’re both citizens of the same country).
Other than his foolish (but rather ballsy, i must say) pronouncement about going to “war”, he’s actually a pretty decent guy. He did well before the iPod came along, usually keeps a pretty low profile and gives to charity quite generously. Of course, not in the same “charity league” as Bill Gates and the rest, but he gives nonetheless.
So i hope he/Creative pick themselves up again, if only to give Apple and others some competition. And for those who lost their jobs…not cool, whether in the US or anywhere else.
“MDN’s commentary is frequently way over the top, but it needs to be put into the context of the crap Mac users have put up with for a long time.”
Amen. That’s also why MDN loves to use the word “beleaguered” since that word so frequently used to precede the word “Apple.” I rather enjoy the turnaround.
I wonder what will happen to what is left of E-MU systems?
I’M GLAD THEY’RE SHUTTING DOWN. AND YES, MDN, IT’S OKAY TO BE SMUG… THEY TRIED TO SUE APPLE FOR SOMETHING THEY DIDN’T EVEN CREATE.
NO SYMPATHIES FOR THEM. THEY WERE ARROGANT.
I think MDN’s take is perfectly justified. Anytime someone or some company gets too cocky (or stupid) as to boast that they’re going to take over a market, they deserve to be made fun of.
Creative should stick to soundcards and speakers. How about a decent surround sound card for the mac? And while your at it, make speaker amps that don’t start crackling due to failing capacitors after a year…