Creative expects operating loss this quarter

Digital music player Creative warned it expects an operating loss of up to US$65 million for last quarter due to a sharp drop in prices of flash memory chips.

Digital music player, Creative Technology, expects to post an operating loss of up to $US65 million during the three months ending March 31.

The company blamed a sharp drop in prices of flash memory chips for the loss.

Prices of flash memory chips plunged in March as consumers bought fewer digital music players, yet chipmakers increased production of the chips.

The good news for users has been falling flash memory prices on global chip markets, which should lead to bargains for flash memory cards used in digital cameras or other devices, and digital music players in late April or May. Companies normally respond to falling flash memory prices by either increasing the amount of storage capacity in devices, or slashing prices -- especially on older models.

Creative, in Singapore, expects its revenue to be between $US220 million and $US230 million during the third quarter of its financial year.

The price of the most widely used NAND flash memory chip, 2Gbit chips, had dropped 34 per cent to $US5.67 on Tuesday from $US8.55 at the beginning of March, according to industry researcher DRAMeXchange Technology. Since the beginning of this year, the price of 2Gbit chips has fallen 63 per cent to Tuesday's close, from $US15.13 on December 30.

Other companies have been feeling the bite of plunging NAND flash memory prices.

Lexar Media, a developer of NAND devices, updated its earnings forecast last week for the quarter ending March 31 to a level far below estimates. The company expects revenue for the period of up to $US130 million, with a $US30 million loss, compared to analysts' estimates of $US200 million in revenue and a $US16 million loss.

Join the newsletter!


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.

Dan Nystedt

IDG News Service
Show Comments

Brand Post

Bitdefender 2019

Shop safely with our award-winning security solution. Protect yourself this Black Friday and get the exclusive Black Friday discount for Bitdefender 2019!

Most Popular Reviews

Latest Articles


PCW Evaluation Team

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


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.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?