Creative says it will benefit from iPod shuffle buzz | iLounge News

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Creative says it will benefit from iPod shuffle buzz

Creative Technology today reported that it sold two million digital music players in its second quarter of fiscal year 2005, ended December 31, 2004. The company said sales were up 50 percent to $375.1 million, and that it has sold over five million players to date. In comparison, Apple sold over 4.5 million iPods during the same holiday quarter, and has sold more than 10 million to date.

Following recent criticism of Apple’s iPod shuffle, Creative CEO Sim Wong Hoo said in a financial statement that his company will benefit from the new low-cost Apple player. “I believe we are extremely well positioned against the flash products and pricing that were recently announced by Apple, as we have superior features and broad product lines that span the entire category,” Wong Hoo said. “I also believe that Apple’s entry into the flash market will create more awareness in the flash market segment, and we are well positioned to become a big beneficiary of this expanding market.”

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Comments

1

These other companies just don’t get it.
One big ‘feature’ of Creatives products is how they crash all the time. Another is how gosh darn ugly they are. The Zen touch is kinda neat but otherwise,yuck.

Posted by CanofAir on January 20, 2005 at 12:49 PM (CST)

2

They may have sold 2 million in a quarter, but that doesn’t include the ones that were Christmas gifts and immediately put on eBay to get money for an iPod.

Fishes,
narco.

Posted by narco in Burbank on January 20, 2005 at 1:07 PM (CST)

3

Ermm Apple is gonna smoke creative.

Posted by FluidG4 on January 20, 2005 at 1:21 PM (CST)

4

The thing with the CEO of Creative and the others in the market is that they’re like the Washington Generals.  They know the Globetrottrs are going to win, but they have to keep up a good face and pretend they’re in the game.

Having said that it is unlikely that Apple will be able to keep up such a high market share forever.  I think they’ll continue to lead the field but I do think you’ll see more competition from serious players over the next year or two.  Now I don’t think the trouble is going to come from Creative.  iRiver is the only one making anything I’d actually use other than the iPod and companies like Sony and Microsoft are more likely to have the marketing muscle to move in on Apple.

Posted by Jazzlawyer in Kelowna, BC Canada on January 20, 2005 at 2:02 PM (CST)

5

Creative does have a bigger foothold in the FLASH player market than Apple. Whereas Creative was the new kid in the HD player block, now it is Apple that must show it’s stuff in the flash player arena. The shuffle is a nifty player but it doesn’t offer anything that Creative/Iriver/Yepp/Rio etc. etc. players don’t already. I would love to get a shuffle to go with my iPod but it just does not give me anything my present flash MP3 player does not. And I have to buy an armband for it so I can take it running. I could care less about how these things look. It’s a gadget not a GQ/metrosexual accessory. The weapon Apple has is the price. A deal maker for most of us. I myself don’t care for an LCD screen in a tiny player and would buy the shuffle over other brands because of the memory/price ratio if I were in the market for one.

Good luck to Apple.

Posted by syciprider on January 20, 2005 at 2:14 PM (CST)

6

that doesn’t include the ones that were Christmas gifts and immediately put on eBay to get money for an iPod.

# “creative zen” on eBay: 276
# iPod (all categories) on eBay: 3531

I know this is hardly a scientific or nearly accurate count, but the eBay numbers being sold do not seem to reflect your assertion, or even reflect the relative market numbers of iPods versus Creatives.

Posted by Demosthenes on January 20, 2005 at 2:15 PM (CST)

7

Demosthenes,

You may be unfamiliar with E-bay so if that’s the case then fine. Those number are about as accurate as a blind sniper.

For those numbers to be accurate you’d need to scan each and every listing and make sure they aren’t an E-bay ‘store’ that sells via bidding wars to make more per product. Go through and count how many are people cashing in for a creative zen and then go through the creative zen listings and count how many are hocking theirs for an ipod.

Posted by RegalBegal in New England on January 20, 2005 at 2:30 PM (CST)

8

If the Shuffle succeeds in eliminating other companies from the MP3 flash market, it will not be because of brilliant design, but brilliant marketing.

How people can think a flash based MP3 player where there is no screen and you can’t swap flash cards is somehow “the best” implementation ever is beyond me.

Posted by NeoteriX in Houston, TX or Westchester County, NY on January 20, 2005 at 2:31 PM (CST)

9

I don’t think it’s “the best” implementation ever—it’s certainly one of the cheapest and simplest implementation, which for a flash player are the strongest points.

Also, Demosthenes, keep it up.  You’re hilarious.  Are you a joke account?

Posted by deepfriedd on January 20, 2005 at 2:44 PM (CST)

10

The troll speaketh…

“# “creative zen” on eBay: 276
# iPod (all categories) on eBay: 3531”

Demo, you’re such a tool.  The iPods are being sold so the sellers can replace them with newer iPods.  The Creatives are being sold so that those sellers can purchase iPods.

Posted by Quoth_the_Raven in Herndon, VA on January 20, 2005 at 3:09 PM (CST)

11

Master Kan:  Grasshopper.

Grasshopper: Yes, master.

Master Kan:  What is the sound of Creative’s market share tumbling?

Grasshopper:  That would be the sound of Demothenes’ drivel, master.

Master Kan:  You learn fast, Grasshopper.

Posted by Quoth_the_Raven in Herndon, VA on January 20, 2005 at 3:26 PM (CST)

12

The reason the shuffle is a good product has nothing to do with how it looks or it’s features.

It has to do with the fact that it is the ONLY flash player works seamlessly with iTunes.  Do you know how hard it is to try to tell someone how to get an iTunes downloaded song on their iRiver flash player?  I’m talking the typcial tech noobie?!

90% of people are worried if they download music for free they are going to get sued by the RIAA.  They don’t mind downloading and payiing 99cents for a song.  iTunes is BY FAR the best integration of jukebox and music store.  I know this because I have tried them all.

Posted by mgbrown66 in USA on January 20, 2005 at 3:46 PM (CST)

13

Also, you have to consider accessories. By simply typing “iPod” on eBay, you’ll get tons of accessories, older iPods, etc. How many accessories does any Creative player have?

Fishes,
narco.

Posted by narco in Burbank on January 20, 2005 at 5:07 PM (CST)

14

The iPods are being sold so the sellers can replace them with newer iPods

So now you’re a mind reader? I doubt it.

I deliberately used an absurd example to show that the original invocation of eBay as a rationale was deeply flawed.

90% of people are worried if they download music for free they are going to get sued by the RIAA.

90% ? I doubt it. Somewhere between 1 and 2 *billion* songs are measurably exchanged every month on p2p networks… and that’s just the ones the monitoring companies know about. The quantity being exchanged on darknets and cryptographically secured WASTE-like nets is unknown.

Compared to this, the volume of all songs legally licensed for download is minute.

Or, to think about it another way, if Apple has sold 250m songs, and there are 10m iPods, then that makes ~ 25 licensed songs per iPod.

If the average iPod size is, say, 20GB, and the average song is 3.5 minutes long, then the percentage of the average iPod occupied by licensed downloads from iTMS is ~ 25/5000*100…

0.5%

So if 99.5% of the functionality of the average iPod is being used for anything but iTMS downloads, then that says to me that the iTMS is not a prime driver of iPod sales or user requirements.

Posted by Demosthenes on January 20, 2005 at 5:22 PM (CST)

15

Brown you make it sound like we need to use itunes. iTunes alone will not make the shuffle. If that’s the only claim to superiority then it’s a pretty tenuous virtue. A firmware or software patch on the competing brand’s units will wipe that out.

Have you used Gnutella/Limewire/Kazaa lately? There is no shortage of folks who defy the RIAA. iTunes and the Apple store are very successful, but they’re not the be all end all of the compressed music market yet.

shuffle needs to bring more to the table for me to retire my little Nuvo TX.

Posted by syciprider on January 20, 2005 at 5:24 PM (CST)

16

how narrowminded can you be? If you really think the ipod shuffle is best flashed based player then your not someone to judge. However, the majority of the market share isn’t in “the know” and with the popularity of ipods the apple name is huge in the mp3 industry also the price is going to be a huge factor for most consumers. It’s like pop music, just because its popular doesnt mean its good, as compared to jazz or rock.
Will the shuffle sales be good? Yes. Is it a better flash mp3 player? No. I hope this creative guy is right more competition with manufactures are gonna be a great benefit to consumers.

Posted by xlEnt on January 20, 2005 at 6:51 PM (CST)

17

To all you iPod haters out there…we’ll blow your planet up!

-Darth Vader

Unfortunately for most people who complain about the iPod lacking features and other frivolous arguements, they are also the ones who haven’t used it. I too strayed from the true path until I got my mini. Then I loved it. As for the rest, I did have a incredibly hard to use flash based one that made my weep.

Posted by Mahzorim iPod in Wildwood on January 20, 2005 at 7:19 PM (CST)

18

Bwahahaha. Nice one Mahz… have you seen the latest version of that Flash video? Pretty cool.

Back to the topic - Maz is right. If you haven’t previously owned an iPod, then you wouldn’t have an idea of what features you’ll really need. I’m not saying i’d exchange my 3rd gen for a Shuffle - but i do have my 3rd gen setup the way a Shuffle is - by managing my Playlists with iTunes and having them play randomly. 

And yes, i use the wired remote too - so i don’t see the iPod screen, tucked away in my belt clip.

Posted by theanimaster in Bangkok on January 21, 2005 at 1:52 AM (CST)

19

First he (Creative’s Sim) bashed Apple’s new iPod Shuffle, saying it is a disappointment, a joke, blah blah blah, now he says that (thanks to) Apple’s iPod Shuffle fraze may help boost the overall flash player market, uh, he mean his own market share right?

Whatever, Creative, I dun care what you do or what you say…

They (Apple & Creative) may have similar products now, but Apple will come out top in the end, because selling these stuffs, putting them into our hands and ‘making’ us part with our money, is more than the product itself, and Apple has it all and better: image, branding, marketing, advertising and the whole iPod hype to it…

Just look at one aspect: iPods can be spotted in TV shows, movies and MTVs, do you see a Creative Zen in there soon? I dun really think so…

cheers

Posted by howwow in Singapore on January 21, 2005 at 11:38 AM (CST)

20

The Ipod is being marketed the same as the Walkman was (for those old enough to remember), the headphones of a walkman were distinctive, just as the Ipod’s earbuds are, look at the commercials with the silhouettes, the emphasis is on the ipod and the headphones. It was a real big deal for a long time to only have a Sony Walkman, not because it was the best but because it was a symbol of quality and yadda yadda yadda, this is entirely a product of excellent marketing on Sony’s part.

The marketing behind the Ipod is brilliant.  This is where Apple will simply win out. When it comes down to it all that matters is who has the best ad people to trick the most people into buying their products.

Posted by MadKhz on January 22, 2005 at 12:23 AM (CST)

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