updated 04:45 pm EST, Fri January 14, 2005
Creative snubs Apple
With its sights set on gaining marketshare, Creative Technology says it is about Apple's new flash-based iPod shuffle player. The company, who ramped up production of its MP3 players in its December quarter by about five times to keep up with demand, says that is sold more than 2 million MP3 players in the December quarter , according to Channel NewsAsia. Creative's CEO Sim Wong Hoo says Creative is not worried about the new flash player from Apple eating into its market share: "Actually, to me it's a big let-down: we're expecting a good fight but they're coming out with something that's five generations older. It's our first generation MuVo One product feature, without display, just have a (shuffle feature). We had that -- that's a four-year-old product."
The article notes that Apple's 4.5 million iPod unit shipments in the December quarter is almost double that of its nearest competitor, Creative's Zen Micro.
"So I think the whole industry will just laugh at it, because the flash people -- it's worse than the cheapest Chinese player. Even the cheap, cheap Chinese brand today has display and has FM. They don't have this kind of thing, and they expect to come out with a fight; I think it's a non-starter to begin with."
Creative expects that demand will continue after the holiday quarter and says it plans to continue with its production momentum this quarter with new product introductions. Creative announced that it has raised its guidance for revenue growth in its fiscal second quarter. Creative now expects to see a 45 percent on year jump in revenue for the three months ended in December to over US$360 million.