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Creative blames Q4 losses on iPod, Zune

updated 11:15 am EDT, Thu August 9, 2007

Creative blames iPod, Zune

Creative, most famous for its sound cards and media players such as the Zen V Plus, is blaming newly-reported fourth-quarter losses on competition from Apple and Microsoft. Losses in the period ending June 30th amounted to $19.3 million, a substantial increase over the $12.7 million lost in the same period last year. Sales have fallen 28 percent to reach $165.2 million. The company attributes this primarily to the continuing dominance of the iPod, which holds 68.9 percent of the US market, but additionally to the introduction of the Zune, and more recently Microsoft's price cuts to clear out stock. Despite it being a new product, the Zune currently holds 2.5 percent of the market.

In a positive turn for Creative, it produced net income of $28.2 for the latest fiscal year, a reversal of the $118.2 million in net losses the year prior. Part of this profit stems from a $100 million fee from Apple however, a settlement over an iPod patent dispute. The terms of the deal mean that Creative is now an active supplier of iPod accessories. [via Bloomberg]



By Electronista Staff
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  1. ebeyer

    Fresh-Faced Recruit

    Joined: Jun 2004

    0

    How bad

    How bad do things have to be for you to be threatened by the Zune?

    Memo to stockbroker: SELL! SELL!

  1. Beechlady

    Fresh-Faced Recruit

    Joined: Oct 2006

    0

    Um,

    how about instead of blaming OTHERS, put the focus on YOUR product. Has is ever come to your attention that you either have a BAD PRODUCT or your MARKETING SUCKS?

  1. FastAMX79

    Junior Member

    Joined: Sep 2000

    0

    wow

    If you are losing sales to the zune, you REALLY need to rethink your marketing, or product line. Creative should just blame themselves... oh wait... no one can take responsibility for their own mistakes anymore.. it's blame everyone else or sue them.

  1. bloggerblog

    Fresh-Faced Recruit

    Joined: Aug 2007

    0

    huh

    So I guess it's Apple's fault and the failing Zune!

  1. bloggerblog

    Fresh-Faced Recruit

    Joined: Aug 2007

    0

    blame

    should blame the cool-factor and software. oh… and mac computability.

  1. tomodachi

    Fresh-Faced Recruit

    Joined: Apr 2002

    0

    They are not

    They are not "BLAMING" it on iPods and Zunes, they are "ATTRIBUTING" it to iPods and Zunes. No company "BLAMES" a competitor for their losses, that's just stupid. The word -- BLAME -- was chosen by the pathetic editors of MacNN, for whom, apparently, the best way to generate traffic to their site is to choose contentious headlines.

  1. horvatic

    Fresh-Faced Recruit

    Joined: Apr 2002

    0

    Creative Does Blame

    The CEO of Creative has been blaming Apple's iPod ever since it came out. Said the iPod was a failure, and now that creative is the failure he blames everything on everyone else. Oh he is definitely blaming others for Creative's own failures. That's why people stopped buying Creative's products to was because of his attitude.

  1. OtisWild

    Junior Member

    Joined: Feb 2005

    0

    Blame crappy soundcards

    Creative has overpriced sound cards that don't do multichannel digital-out audio, such as Dolby Digital Live or DTS Connect. My friggin XBOX _1_ could do realtime 5.1 surround!!!

    And when a competitor which _does_ have modern audio outsells them, they sue until the competitor becomes cheap enough to absorb, and then no more DDL card..

    Luckily Auzentech and Bluegears aren't big enough for that to happen.. Yet...

    (/me lovin' WoW in 5.1 DTS...)

  1. Kid Vorpal

    Fresh-Faced Recruit

    Joined: Jun 2007

    0

    Hmm...

    I'd be more worried that my net income was only $28.2 for the latest fiscal year.

  1. Tanker10a

    Fresh-Faced Recruit

    Joined: Jan 2003

    0

    Woa..Woa...

    The last time I contacted Creative about a Sound Card for my PPC/DP, they were so eager to tell me that the Mac platform was not BIG enough for them to create hardware for the Mac. I settled for M-Audio. Well CREATIVE, how do you like the Mac Platform now??? The G5 MacPros are dying for a good sound card. Imagine if they only could have worked with Apple to put out a GREAT Audigy card for the mac, they could be smiling all the way to the bank...By now...Real Creative Idiots! Yeah! Blame on the iPod while other iPod Accessory makers are getting rich and famous....

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