Beleaguered Creative shifts promotional efforts from music players to new sound card line
Wednesday, September 21, 2005 - 01:45 PM EST"Creative Technology made lots of noise last November, when it unveiled two new MP3 players that it predicted would help it take 40 percent of the global market this year. But, analysts say, despite spending about $100 million to promote its MuVo and Zen models, the company's market share is still around 10 percent (compared with Apple's 70). Creative posted a $31.9 million loss in its most recent quarter, and though it recently won a patent battle with Apple (AAPL) over iPod's track selection technology, many feel it may be too late to break Apple's stranglehold. Tellingly, Creative has begun shifting its promotional efforts toward its new line of sound cards," Elizabeth Esfahani and Georgia Flight write for Business 2.0.
[Note: Creative has just 2.4 per cent of the U.S. flash-based music player market, according to NPD, which is relevant because this is the direction market-dominating Apple appears to be taking the digital music player market, as evidenced by the release of the flash-based iPod nano and the discontinuation of the hard drive-based iPod mini. Creative was recently awarded a patent that may or may not be applicable to Apple's iPod. See related articles below.]
Full article here.
[UPDATE: 6:22pm ET: Rewrote note to explain mention of Creative's flash-based market share and clarify patent issue.]
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Did Creative win the patent battle?