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Sat, Nov 21, 2009 - 11:19 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Beleaguered Creative CEO Sim Wong Hoo ‘optimistic’ the company will survive ‘MP3 war’
Friday, July 01, 2005 - 07:37 AM EST

"Singapore's Creative Technology Ltd. intends to maintain its business focus, even as it faces increasing competition in the MP3 player segment from industry giant Apple Computer Inc. (AAPL), a senior company official said Friday," Dow Jones reports. "Creative will 'stay focused' on its business and intends to 'fight this war we are facing now,' Chief Executive Sim Wong Hoo said at an industry conference, adding that he is 'optimistic' the company will survive the 'MP3 war.'"

"'If you can survive ... you will one day hit the jackpot,' he said, without elaborating," Dow Jones reports. "The company's shares Friday closed 0.9% lower at S$11. It has fallen by about 55% so far this year... The Singapore company's MP3 players, sold under the MuVo and Zen brands, are a distant No. 2 to Apple Computer Inc.'s iPod players. Creative is currently facing considerable pressure on prices. A spate of price cuts by Apple prompted Creative to reduce the price of its five-gigabyte Zen Micro MP3 player to S$398 from S$448 last year. Late last year, armed with a US$100-million advertising budget, Creative seemed reasonably optimistic it could duplicate Apple's success in the digital music player market, even though few analysts at the time shared that optimism."

Full article here.

MacDailyNews Take: Sim Wong Hoo is the best. In six short months, he's gone from declaring "war" and vowing to capture 40% market share to being "optimistic" his company will "survive" his self-declared "war." Sheesh.

Related MacDailyNews articles:

Beleaguered Creative may have to write off unsold stock as losses loom
- June 28, 2005
Creative Tech's reduced outlook drags on Apple, PortalPlayer, SigmaTel - June 27, 2005
Creative Tech cuts sales outlook, drags Apple down in early trading - June 27, 2005
Apple passed 20 million iPods sold milestone in early June - June 24, 2005
Creative Technology shares slide to lowest mark in almost two years - May 18, 2005
Apple squeezes and Creative's profit plunges 72-percent - April 23, 2005
Apple iPod pressure forces Creative to drop prices on music players - March 01, 2005
Creative's self-declared 'MP3 player war' against Apple isn't going very well - January 20, 2005
Creative CEO: Apple iPod shuffle 'a big let-down, worse than the cheapest Chinese player' - January 12, 2005
Creative declares 'war' on Apple iPod, shoots for 40% market share of MP3 players - December 21, 2004
Creative Technology declares 'MP3 War' against market-dominating Apple iPod - November 17, 2004
Mossberg: Dell, Rio, Creative 'iPod mini killers' lag badly behind Apple iPod mini - October 27, 2004
Creative pushes to become 'Pepsi' to Apple's 'Coke' in digital music player market - August 07, 2004

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Jul 01, 05 - 07:56 am Comment from: hammer

My my how the tone has changed. Instead of being confident they could bury Apple, now they are just confident they can survive.

LOL

Jul 01, 05 - 08:06 am Comment from: M.X.N.T.4.1

"If you can survive ... you will one day hit the jackpot"
Or if you do manage to survive you may end up pumping quarters into the slots for eternity, never making any gains and wasting your time.

Jul 01, 05 - 08:08 am Comment from: R

From the Boo Hoo files: "One, two, three, four... I declare a thumb war. Against Apple. Hey...wait a second, do over. That's not fair!"

Jul 01, 05 - 08:10 am Comment from: Loooong wait for ShortHorn

Ha ha ha, now you are talking "How to survive" than 'winning". Losser!

Jul 01, 05 - 08:10 am Comment from: hagar57

Looks like Comical Ali landed his first job as a PR consultant.

MW "below" as in "below expectations"

Jul 01, 05 - 08:14 am Comment from: B-Sabre

Just goes to show - Never fight a land war in Asia.....

Jul 01, 05 - 08:27 am Comment from: Suicidal Gingerbread Man

^
From: Loooong wait for ShortHorn
Jul 01, 05 - 09:10 am
"Ha ha ha, now you are talking "How to survive" than 'winning". Losser!"

Wow. You cannot spell OR write a coherent sentence.

Jul 01, 05 - 08:34 am Comment from: mr

"Beleaguered"

Good one.

Jul 01, 05 - 08:43 am Comment from: ron

Losser, rhymes with tosser.

Jul 01, 05 - 08:54 am Comment from: Jimbo von Winskinheimer

Hmm, maybe he's hoping for a short war with reparitions afterwards...

Jul 01, 05 - 09:05 am Comment from: critic

For the first time it is Apple that is putting relentless price pressure on the competition. Steve seems to be copying Mike Dell for a change.

Jul 01, 05 - 09:13 am Comment from: s

May be it is time for Apple to license Fairplay to Creative. Right now, Creative will be willing to agree to any requirement Apple impose on them. Apple can make sure Creative does not start price war against Apple.

Jul 01, 05 - 09:35 am Comment from: macnut222

"May be it is time for Apple to license Fairplay to Creative."

WHY?? What help will it be to Apple? When HP started selling the iPod, they became an instant #2. That just goes to show how much people don't want what Creative is selling.

Jul 01, 05 - 10:05 am Comment from: mrw0lf

'If you can survive ... you will one day hit the jackpot,'

Have you ever been to Vegas?
Eventually the house gets the money with that attitude.

Jul 01, 05 - 10:29 am Comment from: botox

I think Mr. Hoo has a better chance to hit the jackpot in Las Vegas.

Jul 01, 05 - 11:00 am Comment from: Petey

Creative sucks!

Unfortunately for them - all their customers realise that too!

Shame they don't themselves.

The only way Creative is gonna sell any players is if they design it exactly like the ipod - Which they can't as Apple will sue them big time!

itunes is the killer app and it's what everyone wants!!

Jul 01, 05 - 11:09 am Comment from: ron

Anagram for Sim Wong Hoo---GISMO NOHOW

Jul 01, 05 - 11:11 am Comment from: ron

Anagram for sputnik--STINK UP

Jul 01, 05 - 11:51 am Comment from: s

macnut222: "WHY?? What help will it be to Apple?"

Better to be proactive and sign them up when the competitors are down than wait for them to go running to government, decide Apple has monopoly in digital music player market and force Apple to open up the market (not sure what they can do, may be split iTMS and iPod or force iTunes to work with WMP format).

Jul 01, 05 - 12:03 pm Comment from: MacMania

I'm sure this is the former Iraqi Information Minister. Talk about "Reality Distortion Field".

raspberry

Jul 01, 05 - 12:54 pm Comment from: Follower

S -

Your post seems to mix and match three governments: the U.S., the European Union and Korea. The U.S. government hasn't done a thing to Microsoft after finding that they abused their monopoly power. Only the E.U. has done that. Could a Korean company could ask the European government to force a U.S. company to comply? If they did, I bet the case would drag on a very long time.

Jul 01, 05 - 12:56 pm Comment from: Follower

And why is it that, after one reads and re-reads one's post before submitting it, one still never ever sees the typo?

Jul 01, 05 - 02:20 pm Comment from: ron

"And why is it that, after one reads and re-reads one's post before submitting it, one still never ever sees the typo?"

It's because one is not used to doing it right in the first place.

Jul 01, 05 - 03:38 pm Comment from: hammer

Apple does NOT have a monopoly in the music business. That is a RIDICULOUS statement. Just because they have a huge market share doesnt mean they have a monopoly. You people don't know what a monopoly is. MS was covnicted of monopolistic practices because they forced the PC industry to favor their OS, and they bundled software with the OS that couldnt be undone, in an effort to keep out competitors. THAT is a monopoly.

Apple has built a huge marketshare because they provide a quality product and a quality user experience that people have CHOSEN to buy into. Thats called free market people. There's no case here.

Jul 01, 05 - 04:19 pm Comment from: spyinthesky

Apple has no need to help Creative in any way. If a serious competitor breaks cover it certainly won't be from this wannabe Asian corner shop whose only real talent is bravado. The sector has been defined now and it will be the big well known brand names that will compete with Apple if anyone can.

Jul 01, 05 - 04:45 pm Comment from: mike

Steve seems to be copying Mike Dell for a change.
----------
Uh, it's not a huge surprise is it? They're making money hand over fist and have like 6 billion in the bank.. most of the music player companies they're competing against have nothing close to that in the bank.

Sony? They're still recovering from their greedy ATRAC madness..

Dell? They've got money, sure, but they hardly even market their little Dell DJ, and probably don't even care, since they're not pushing software like Apple is. They're stuck on Musicmatch, with Creative making their players for them...I really don't think they care about the mp3 arena.

Gates is hoping he can win against superior hardware... again..

Jul 01, 05 - 06:13 pm Comment from: iHateWindows

I seriously doubt that they could possibly survive.

Jul 02, 05 - 12:52 am Comment from: s

http://www.pcworld.com/news/article/0,aid,119213,00.asp

Jul 02, 05 - 01:04 am Comment from: justified

How has Apple, the little 2% player, near it's death for the last 20 years, suddenly become an industry giant?

What a farce!

Jul 02, 05 - 01:59 am Comment from: justified

Regarding the Slatterly monopoly suit: I can imagine that FairPlay is less of a hardware lock-out and more of an insurance policy (implemented through technology) for the record companies as a way for Apple to keep the use of a single downloaded song somewhat limited (based on the number of computers and music players one person would reasonably own). I'm sure that's how this will play out in court, if it comes to that.

This Slatterly fellow owns an iPod and has purchased files from the ITunes Music Store, therefor he has suffered no damages. He is likely a tool for M$, Real, Creative, or some other greed-monger that was once writing Apple's obituary but now wants a chunk of it cash.

Jul 03, 05 - 05:35 pm Comment from: Al

The suit against Apple is predicated on the fact that iTMS purchased tunes are protected by Apple's DRM and that the FairPlay protection will not allow the purchaser to play the tunes on non iPod music players, Motorola Phones notwithstanding.

I think these idiots have the cart before the horse. In most cases, you choose an MP3 player, any MP3 player, and you get free MP3 management software with it. iTunes works with iPods and damn few other players. You use the software that came with your player to download purchased, DRM'ed 'MP3's'. They work with your player. Most people in this proposed class action fall into this situation.

If you chose to get the iTunes software to manage your 'MP3's' before you bought an 'MP3' player you had many other different software choices on Windows OS (80% of iPod users). If you then bought DRM'ed music from iTMS and then bought an incompatible player, whose fault is that? You knew the DRM only worked with iPod players when you bought it. You could have bought an iPod or used other software to buy other DRM'ed music that worked on other players.

If you used to own an iPod and you have iTMS DRM'ed music in your collection and you now want to buy a competitive player then you can't do it without switching 'MP3' player management software. Is it the new player that is at fault? Is it the new 'MP3' management software that is at fault? Doesn't the iTMS purchaser know at the time of purchase that the tunes only work on iPods? Everyone knows these DRM'ed tunes can be burned to CD and ripped into any DRM free format needed.

Where is the class needed to form this class action suit? How many people fall into this idiot's category? This is obviously a money grab by many 'Outstanding' members of the legal profession. It has no merit whatsoever. Just compare it to the iPod battery class action suit for merit. There is no comparison.

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