iPod rival Creative sings off key in Q4

iPod rival Creative reported its second consecutive loss as it battles strong competition from rivals and mobile phones with built-in music players.

Creative Technology, the leading challenger to the iPod in digital music players, reported its second consecutive quarterly loss as it battles strong competition from rivals and mobile phones with built-in music players.

The Singaporean company said it lost US$12.7 million during the three months ended June 30, its fiscal fourth quarter, as its sales plunged to US$230.9 million from US$305.4 million in the same quarter a year ago.

The results brought its full year loss to US$118.2 million, while its sales fell to US$1.13 billion. In fiscal 2005, Creative reported a net profit of US$588,000 on sales of US$1.23 billion.

Still, Creative vowed to return to profitability by the end of 2006, and promised continued profitability thereafter.

Some analysts, however, were skeptical of its vow. Digital music players and accessories accounted for 65 percent of Creative's revenue in the quarter, and that's where competition is toughest.

And it's not just Apple Computer the company has to worry about. Major handset makers, including Nokia., Motorola and Sony Ericsson Mobile Communications have all launched popular mobile phones that offer music and even video player functions.

Now that mobile phone companies have the digital music player market in their sights and on their handsets, users may opt for the convenience of listening to music on their mobile phones instead of carrying around multiple devices, analysts say.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
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

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?