Thursday, June 16, 2005
Creative Getting Clobbered by iPod?
Posted by Kent Pribbernow in "NEWS" @ 01:00 AM
"Analysts say that although Creative is still selling millions of portable music players, profits are slumping as Sim's products remain unable to attain the "iconic cool" status of Apple's iPod. Locked in a fierce price war with Apple and other electronic giants, Creative's net profits in the March quarter fell 72 percent to 15.9 million US dollars from 57 million dollars a year earlier."
Amazing what an iconic cult status can do for market share and profit margin, isn't it? Creative is the second largest distributor of digital audio players, behind Apple. I had assumed this was a profitable segment for Creative. But I can see how they would be taking bath by having to compete on price; that's always a losing strategy.
Amazing what an iconic cult status can do for market share and profit margin, isn't it? Creative is the second largest distributor of digital audio players, behind Apple. I had assumed this was a profitable segment for Creative. But I can see how they would be taking bath by having to compete on price; that's always a losing strategy.
