Creative settlement only ‘drop in the bucket’ for Apple | iLounge News

2014 iPad iPhone iPod Buyers' Guide from


Creative settlement only ‘drop in the bucket’ for Apple

Author's pic

By LC Angell

Contributing Editor
Published: Thursday, August 24, 2006
News Categories: Apple

Apple’s $100 million settlement with Creative Technology is only a “drop in the bucket” for Apple and removes potential future headaches for the company, according to one Wall Street analyst. “If Creative had been able to win any favorable rulings in the five outstanding lawsuits, Apple could have faced headaches including: further appeals, product injunctions, future and historical royalty payments,” said Piper Jaffray analyst Gene Munster. “Considering $100m represents 1.1% of Apple’s $9.2 billion in cash (at the end of the June quarter), we believe the settlement will prove to be the right course of action.”

Munster also said that he sees Creative’s plans to make iPod accessories as somewhat of a turning point within the company. “Over the last several years, Creative has been focused on head-to-head competition with the iPod and it appears that the company is now embracing the iPod eco-system as a way to grow revenue. We see this as a subtle admission by Creative that iPod does in fact dominate the MP3 player market (~75% U.S. market share according to NPD) and more may be gained from ‘coopetition’ than direct competition,” Munster said.

« AOL launching full-length movie downloads

Incase intros leather folio for U2 iPod »

Related Stories



It will be interesting to see if there was any patent cross-licensing involved in this settlement. If Creative has rights to some iPod patents, they may potentially be able to use a wheel for navigation and/or make use of the iPod accessory port to make players which would work with iPod accessories.

Posted by m.s. on August 24, 2006 at 4:54 PM (PDT)


“and/or make use of the iPod accessory port to make players which would work with iPod accessories”

Or hopefully the other way around: make accessories that work both with ipods and ZENs.

Posted by Chahk on August 25, 2006 at 9:09 AM (PDT)

If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods/iPhones/iPad or accessories, or if you sell or market iPod/iPhone/iPad products or services, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators.

Commenting is not available in this section entry.


Recent News

Recent Reviews

Recent Articles

Shop for Accessories: Cases, speakers, chargers, etc.