Creative warns of weaker demand for MP3 players

MP3-player maker Creative Technology Monday warned that demand for its MP3 players was weaker than expected.

Creative Technology, a Singapore-based maker of MP3 players, Monday lowered its guidance for its fiscal fourth quarter, citing "softer-than-expected" demand for MP3 players and lower selling prices.

In April, Creative said it expected to earn fourth-quarter revenue of between US$330 million to US$360 million, which would represent a 65 percent to 80 percent increase over the same quarter in 2004. The company has now lowered its revenue forecast to US$300 million, which represents a 50 percent increase over the same period last year.

Creative did not offer a reason why it was seeing weaker demand for its MP3 players or why it had been forced to cut prices on its MP3 players, but the company warned the revised guidance will likely push it into the red on an operating basis.

"Based upon its revised guidance, Creative expects to report an operating loss for the period," it said in a statement.

Creative has been feeling pressure from the competition for some time. During the company's third fiscal quarter, price cuts for Apple Computer's iPod mini and the introduction of Apple's cheaper iShuffle flash memory-based player forced Creative to cut prices on its own products, reducing its profit margin, said Craig McHugh, president of Creative Labs, the company's US unit, in an April conference call with analysts.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sumner Lemon

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?