Creative blames Apple for MP3 player shortage
updated 04:55 pm EDT, Wed October 26, 2005
MP3 player shortage
Craig McHugh, president of Creative Labs today warned that MP3 players that the company made with Samsung. "Industry demand for high-capacity flash memory currently outstrips supply and this will impact availability of our 1GB flash MP3 players for the holiday quarter. [...] The shortage of flash memory, according to industry analyst speculation, is primarily a result of a special deal that Apple has secured from a key supplier for the holiday season," McHugh said. Creative posted a bigger loss than expected, partially because Apple has squeezed prices, according to a report from PC Pro.










Ahh!!!
10/26, 05:52pm reply
Oh God! The world is coming to an end! Creative won't be able to sell alot of their 1GB flash players! Puh-lease....this is just an excuse for their preemptively crappy sales. So I think we can all blame Apple for giving them someone to point fingers at.
I feel bad for all those poor people who won't be getting their Zen Micro's this Christmas......poor poor 15% marketshare.......
OzzysCross101
Fresh-Faced Recruit
Joined: Aug 2005
big fish....
10/26, 06:32pm reply
Someone’s gotta be the big fish in the pond and it's not Creative Labs, step aside... besides your wasting good flash memory by putting it in an inferior product like the Zen.
bleee
Mac Enthusiast
Joined: Mar 2002
Special Deal?
10/26, 06:53pm reply
Um . . . wasn't this so called "special deal" for the high capacity flash drives in the Nano, and not for the run of the mill 1GB ones in the shuffle?
jasong
Mac Elite
Joined: Mar 2000
War on iPod
10/26, 07:12pm reply
Well Creative's little war on the iPod isn't going so good now is it. I wonder if the CEO has any more he'd like to say on the subject. We're eager to hear further words of wisdom from his infinite intellect.
And in other news today Iraqi insurgents and Palestinian terrorists blame the US Army for a restricted supply of bullets. Said one, "The great satan is taking all the metal for himself and not leaving any for us. We will have to throw rocks next." An aide then interrupted to point out that they had already tried that without success.
The above attempt at humour is not meant to imply in anyway that Creative is a terrorist organisation. Just that they are whining about a situation of their own creation, ie not being popular enough to make the deal with Samsung for themselves. It's sad that this has to be pointed out but I just know some fool is going to tell me that I shouldn't equate Creative with terrorists so I thought I'd head such silliness off at the pass. Have a nice day!
beeble
Fresh-Faced Recruit
Joined: Mar 2004
What a maroon...
10/26, 08:11pm reply
It is a sign of poor leadership when the president of any company blames there shortcomings on another company. Plenty of other manufactures produce flash memory. Besides everyone else in the computer industry has been doing this for years... Dell, HP and others have made "special deals" to squeeze prices so they can sell a complete computer setup for around $500. Most electronics and computer companies have done this and will continue to do so. For years Apple has taken sales hits because they didn't do this. Creative is simply calling the kettle black, when they should either make a better MP3 player or make something else.
Apple Master 007
Fresh-Faced Recruit
Joined: Jul 2001
Shortage?
10/26, 08:49pm reply
Well, as long as Apple is using that memory to make players, and not hoarding it in a warehouse someplace, there will be just as many MP3 players as there would be otherwise...it's just that more of them will be iPods! If they didn't buy them, someone else would. It's not like Apple pulled a MS and told suppliers they couldn't sell their chips to other MP3 manufacturers.
"Creative posted a bigger loss than expected, partly because Apple has squeezed prices." To paraphrase: Creative is losing money because they couldn't keep up with the competition.
ender
Fresh-Faced Recruit
Joined: Mar 1999
Oh for the love of...
10/26, 09:10pm reply
You snooze, you lose.
Get big or get out.
Did this guy sleep through Business 101?
"and while I'm at it, folks, let me follow up my reliance on speculation by someone who never sold a piece of consumer electronics with this little gem: We may not have enough players, but them boys at Apple sure got plenty to sell right thru Christmas! Oh, wait - I mean - oh, blast!"
jpellino
Fresh-Faced Recruit
Joined: Oct 1999
Wow....
10/26, 09:54pm reply
With a CEO a UNbusiness savvy as this guy, no wonder Creative has gone done the tubes. You think they are just bitter no one owns a Sound Blaster 16 card anymore? =)
gamato
Fresh-Faced Recruit
Joined: Mar 2005
Cry me an iRiver...
10/26, 10:18pm reply
where will I get my cheap crappy mp3 player gifts for my enemies?
boomer0127
Fresh-Faced Recruit
Joined: Jan 2004
Tough c***
10/27, 10:26am reply
Wish someone could get the message to this CEO "That's business" suck it!
whackjob
Fresh-Faced Recruit
Joined: Aug 2005