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Creative sold 2 million MP3 players in Q1

22 April 2005 15:51 by James "Dela" Delahunty | 6 comments

Creative has announced that it has sold 2 million MP3 players in the first quarter of 2005, a number that is equal to the holiday quarter of last year. The company did admit however that it is feeling financial pressure from Apple's strategic pricing of its iPod music players. "This was our second consecutive quarter of selling two million MP3 players, an achievement that further positions us as an industry leader in the explosive MP3 market," Sim Wong Hoo, Creative's CEO said in prepared remarks.

He said the company will continue to aggressively price its players but also warned that it may move profit margins lower in the short-term. Craig McHugh, president of Creative said that the company is now starting to feel the pressure from Apple's pricing strategies. He said that the price drops in the iPod Mini were larger and the aggressive pricing of the iPod Shuffle was lower than expected.

The company is hoping that rises in sales will help it to get better deals with suppliers so it can lower the cost of manufacturing the players and reduce the decrease in profits. Creative struck deals with Circuit City and Best Buy to carry the Zen Micro player which substantially increased the products availability. Apple has been selling iPods at Best Buy since 2002.

Source:
Betanews

Permalink to this article

Creative touts ownership of key MP3 player patent (9 December 2005)

Apple slashed iPod prices (25 February 2005)

Apple expands iPod family (23 February 2005)

Apple introduced iPod Shuffle (11 January 2005)

Soundbuzz and Creative launch Asian online music service (7 July 2004)

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Discuss this article!
c4iscool (Member) 22 April 2005 18:20
i care because........that's right I don't. [ + quote]
Dela (Staff Member) 22 April 2005 18:31
OK....... then why comment? http://www.BillLonero.com - Check out a true artists music! aD channel on IRC: irc.addictz.net #ad_buddies Newbie IRC Guide- http://forums.afterdawn.com/thread_view.cfm/47221 [ + quote] This message has been edited since posting. Last time this message was edited on 22 April 2005 18:33
ozzy1 (Member) 23 April 2005 2:41
Well I care because i want creative to keep going. I had an ipod mini and just sold it and bought a zen micro. I think the only reason people buy ipods anyway is because they call all mp3 players ipods. My zen gets called an ipod all the time by friends which annoys me. [ + quote]
punx777 (Senior Member) 23 April 2005 6:12
i feel ya heart to heart ozz. thank you (whoever posts the articals) for posting comments about mp3 players other then ipod. i love my micro to death. does anyone know how many ipods sold that quarter? i know its likely alot more, i just want to compare. i HATE being in nebraska. i had to travel 3 hours to buy my zen. [ + quote]
punx777 (Senior Member) 23 April 2005 6:24
"Unit sales of iPods totaled 4.6 million in the first quarter of 2005" ( from some apple page) Creative is really comin up. still half of apples, but you have to figure in how unadvertised the zen are. You can get an ipod just about anywhere, but zen micros are a little harder to come by. [ + quote]
wheelman7 (Junior Member) 23 April 2005 10:31
I wouldn't buy anything other than a Zen Micro for MP3's because they make the best audio eqipment in the world... just look at their soundblaster cards and 5.1 to 7.1 speaker systems. UNMATCHABLE! [ + quote]