Archive for the ‘Business’ Category
Jumping on bandwagons is a bad idea: Part infinity
Found on ChannelNewsAsia:
Computer audio equipment maker Creative Technology Ltd posted a 72 percent fall in quarterly net profit due to increased competition and lower selling prices of digital music players.
Nasdaq-listed Creative said it had net profit of US$15.9 million for the three months ended March 31, its fiscal third quarter, including a $14.8 million investment gain.
This compares with earnings of $57.0 million a year earlier, including an investment windfall of $48.3 million.
Creative has been fighting for a share of the high-growth MP3 market against Apple Computer Inc’s market-leading iPod and other rivals.
And what have I been saying ALL ALONG about jumping on bandwagons, everyone?
Creative is now in a position identical to that of HP. HP is currently being slaughtered at the high-end by IBM, and brutally crushed in the low-end by Dell. Either compete by services and value (IBM), or by price and volume (Dell). HP is stuck in the middle with no where to go, and is basically now a glorified printer-cartridge seller (their only source of profits for the last 2-quarters).
Creative is facing competition in mp3 players from cheap volume producers from China and Taiwan, and Apple, who is selling the iPod as a distinctive, high-value lifestyle product. How is Creative going to compete? Heck, even the most powerful man in the world has his own iPod One.
Creative not being very creative nowadays, innit?
Channelnewsasia.com - Creative’s Q3 net profit plunges 72% to US$15.9m
BBC NEWS | Americas | Bush’s iPod reveals music tastes
