Creative blames Apple for flash shortage | iLounge News

Creative blames Apple for flash shortage

Makers of MP3 players are facing a shortage of 1GB flash memory chips, and at least one blames Apple and Samsung for the less than ample supply that the rest of the industry is fighting for.

“One of the key challenges we face in our MP3 business is an industry-wide shortage of 1GB flash memory,” said Creative president Craig McHugh. “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.”

It has been reported that Samsung is selling the majority of its flash memory supply to Apple at below market cost for use in the iPod nano and iPod shuffle.

Creative CEO Sim Wong Hoo said the deal is putting pressure on many smaller companies. “The MP3 market is now consolidating, but there is a shortage [of flash memory] because of the special deal we talked about,” said Sim. “The low-end [manufacturers] went out of business in the last few months because it’s very hard to face this pressure. If Creative is losing money then it’s very difficult for other companies to really fight in this battle.”

Sim said he doesn’t expect the deal to last long. “I don’t think the vendor [Samsung] is benefiting on it, so it’s really a one-sided deal,” he said. “I don’t think anybody else out there can get [similar terms]. That’s not the way the industry practices.”

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Translation: “Waaaaah.”

If Apple blamed a loss (or smaller gain than calculated) on Dell’s volume deal on parts delaying their Macs (or why not Cinema Displays, since they use the same panel in one product), would anyone take them seriously?

Posted by Jesper on October 27, 2005 at 10:15 AM (CDT)


um welcome to business. was this like a press release I can’t imagine a context in which he would have said this. also is the 1gig shuffle really creating an “industry-wide shortage”?

Posted by jm on October 27, 2005 at 10:33 AM (CDT)


I think maybe the nano may use two 1gb sticks?  Otherwise you have a point, jm.  I doubt the shuffle’s impact on the entire industry’s supply of flash memory.

oh, and cry me a river.  make a better product and then bitch about not being able to compete.

Posted by dethbrakr on October 27, 2005 at 10:35 AM (CDT)


No the nano doesn’t use 1gb chips. Samsung makes the 2 and 4gbs for the nano only.

Posted by Jonathan Keim on October 27, 2005 at 11:15 AM (CDT)


Apple fanboys UNITE!  Apple engages in anti-competitive business practices?  SO WHAT!  Microsoft does it?  BURN THEM!

Posted by stark23x on October 27, 2005 at 11:21 AM (CDT)


Why don’t they blame their-selves for not being creative enough (as their name suggests), to make something that could compete?

Posted by Yegor on October 27, 2005 at 11:57 AM (CDT)


One of two things would apply here;

“Fu** Em”


“Su** It”

Posted by LilAlienD on October 27, 2005 at 12:02 PM (CDT)


The instant I read the headline I thought… hold on a cotton picking second cause I seem to recall Samsung making flash specifically for the Nano and it isn’t some off the shelf stuff others can use, so how in hells name can it effect how many MP3 players others produce.

2nd of all, even as a long term Creative user on my PCs - so anyone who wants can call me a Apple/Creative fan boy, even so Creatives history is jam packed full of underhand under the table anti consumer like actions of their own - at one time they more or less screwed the whole graphics card industry to a halt because they bought every chip 3DFX had available and they were the days when nobody even looked at Nvidia or ATI because there just wasn’t the alternative if you needed to play the latest games, so I’m afraid this little outburst doesn’t impress me one bit.

Posted by Nigel on October 27, 2005 at 12:15 PM (CDT)


“Apple engages in anti-competitive business practices?  SO WHAT!”

What an a**holic post!  Did I miss the news?  When has Apple been convicted of anti-competitive practices?

Posted by The Raven on October 27, 2005 at 12:33 PM (CDT)


Raven: Since when is ‘engages’ and ‘convicted’ the same thing?

Creative’s whine is about manufacturing capacity. Apple may not be monopolizing all the 1GB flash mem units that are actually being made, but they are monopolizing manufacturing capability to make 1GB units. Because of the Samsung/Apple agreement, Samsung is dedicating their resources to satisfying what Apple needs and wants for the nano (and perhaps even the Shuffle as well); i.e., their flash memory plants aren’t available for anyone else’s needs.  Take that capacity away from the rest of the market, and Creative is crying shortage, because no one else is able to step up and meet the demand.

How hard was THAT line of thinking to figure out?

Posted by flatline response on October 27, 2005 at 12:49 PM (CDT)


There is a “?” after that guy’s post you quoted, so its not a statement.  Guess that makes you the a##hole.

Posted by HuH on October 27, 2005 at 1:01 PM (CDT)


I own a PC and a Mac—I don’t claim that either is the other’s vast superior in all possible aspects.  Different ends require different means.

I don’t recall steve jobs ever having had slept with the samsung people.  creative missed the boat; that’s all there is to it.

Posted by dethbrakr on October 27, 2005 at 1:02 PM (CDT)


Samsung/Apple is actually doing Creative a favor ...

If Creative cannot make as many players ... they won’t have to write-off as much unsold inventory later on.

Posted by Derrick on October 27, 2005 at 1:28 PM (CDT)


Poo Poo for you(Creative)

Posted by LukeA on October 27, 2005 at 3:13 PM (CDT)


Seeing that little whiny b**** complain makes me want to shoot something including him. I absolutely can’t stand his stupid little face.

He’s in the same boat as Ken Kutagari, they can both die and I’d show my sympathy by dancing on their filthly graves.

Posted by Mike on October 27, 2005 at 3:29 PM (CDT)


The Raven -

When your a company and you buy mass products for well under market cost, your essentially no longer operating under an open market system.  Thus, it’s an anti-competitive practice.

Posted by schiano on October 27, 2005 at 3:53 PM (CDT)


flatline response & schiano…

Frankly, this is just a big whine from a company that can’t compete on its own merits, so they come up with a pseudo anti-competitive practices scheme.  And, clowns like you fall for it.  That’s the real laugh!!!

Posted by The Raven on October 27, 2005 at 7:46 PM (CDT)


HuH: I know I should’ve known better than to expect logical thinking from almost anyone around here, least of all you.

Raven: I didn’t fall for anything. Nor do I believe Apple is really at fault here. But playing the devil’s advocate, Creative’s argument does have merit in that they claim that they’ve found that no one is stepping to fill the void that Samsung created in flash mem manufacturing when they signed on to do exclusive manufacturing for Apple. From Creative’s perspective (or iRiver, or anyone else), Apple IS to blame for their supply problems; any dolt should’ve been able to deduce that without needing a company president blathering about it. But at the same time I never said that there was anything necessarily illegal about it, either.

IF you had bothered to actually read my post you would’ve understood that, too. But perhaps that’s too just much to expect from someone in the fanboy section.

Posted by flatline response on October 27, 2005 at 8:55 PM (CDT)


Flatline response:

Speaking of logic, I’m puzzled that you would take the time to post on a site where “almost noone” can think logically. If you really think you stand above us all, perhaps you shouldn’t bother posting.

I am not saying that other posters were right to flame you, but it’s kind of insulting having to read through these kinds of insulting generalizations.

I’m always interested to hear what everybody has to say about the topics covered here and I find most comments to be extremely logical and accurate.

BTW, I don’t consider myself to be “logically challenged”.

Posted by pcouture on October 27, 2005 at 10:18 PM (CDT)


on message boards people like to make things personal and take other things personally. it’s just a fact: there will never be a truly academic debate on a message board ever. but it would be pretty unreasonable to expect it anyway though.

Posted by jm on October 28, 2005 at 12:59 AM (CDT)

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