Post Reply
1-12 of 12
People are buying into Creative to position themselves ... but position for what? Maybe position for another drop? HeeHee!! I am avoid this stock for now.
Looks like I was wrong about Creative's price drop - it rose when I thought it would drop! I was only right about the sudden price movement.
Kekekeke...... :)
Kekekeke...... :)
Just discovered it only. Last week's news on CREAF's upgrade by Credit Suisse for your info only. Its due to its trimmed Q4 loss ... still not a good buy now with MSFT's Zune MP3 coming out end of year.
http://finance.yahoo.com/q/ud?s=CREAF
Bad news for Creative .......... again
Friday, August 11, 2006
Microsoft cuts iPod killer's price -- and features
There are extremely faint signs of intelligent life in Redmond, Wash. Last month, The Browser pointed out that a rumored $399 pricetag for its portable music player was way too expensive. Now Microsoft is telling retailers that the Zune will sell for $299, the same price as a comparable iPod model, according to technology news website Twice.com.
But in addition to cutting the price, Twice says, Microsoft is also cutting back on the Zune's Wi-Fi capabilities. Apparently, Zune users won't be able to buy songs on the go. Instead, they'll have to dock their players and buy songs at their PCs -- just like iPod users do with Apple's iTunes Music Store.
By slashing the price and cutting out key differentiating features, it sounds like Microsoft's just rolling out a me-too music player -- a strategy that sure isn't paying off for Apple rivals like Creative and iRiver. Our advice? If you're sick of iPods, try SanDisk's Lil' Monsta. It may not have Wi-Fi, but it's cheaper, more expandable, and works with a variety of online music stores.
Kim Eng has a price target of $6.94.
Operating costs stayed high. To cut costs, Creative plans on greater outsourcing. KE believes it's likely to divest its in-house manufacturing arm through an IPO, but this may take longer than expected. KE thinks that management has downgraded guidance subtly by targeting a return to profitability only at the end of 06 instead of in 2H06.
Creative needs more than focusing on products with higher growth potential. It must also de-centralise its mgt structure to hasten business responses and be more open to working with third-party parthers.
KE doubts Creative is in a position to be an OEM of Zune MP3 player for Microsoft. Given that flash memory is the most expensive component, it's more sensible for MS to work with direct suppliers like Toshiba or Samsung. Further, the restructuring is expected to involve extensive fixed overhead reductions, especially in its production operation if it does intend to list it separately.
While some may push the restructuring story as a reason to buy Creative, it's still early days. The lack of a killer product in any of its product categories and increasing competition also provide reasons to lower expectations of a fast turnaround in revenue growth prospects.
Nothing creative from Creative so far ....
Creative always gives out dividend USD 0.25 in November since Year 1999. Perhaps we can watch out the price in November?!
From the TA charts, I think Creative is heading for a very sharp price drop in the next few trading days. The Accumulation/Distribution, RSI and Chaikin all drop.
Plus the Bollinger Bands are very very tight now indicating a sudden price change.
Plus the Bollinger Bands are very very tight now indicating a sudden price change.
How true, Mr Sim is a good technical man, but not a marketing man.
Besides Zen design change, maybe a name change too? How about: uZen?
Apple's iPod .... i = I is a Selfish word
Creative's uZen .... u = U meaning putting other people in front than yourself.
Haahaa!!! Jus a joke on a holiday.
I think that the problem lies not only in design but also in marketing. Creative doesn't seem to know how to market its products well.
Creative Q4 earnings out tomorrow at 8am local time .... bad earnings expected due to pending Apple law suits and poor demand for its Zen players. It needs to be 'creative' like Apple (see below).
The only main problem with its MP3 is DESIGN. Mr Sim has completely misjudged the market by focusing on better features and lower selling prices.
I suggest Mr Sim hires a well-known Amercian designer to give Zen a new hip look soon. American will buy American design! He blew hundreds of million on ads to take now Apple 2 years ago. This money could have been spent wisely to pay for good designs for Zen - with more spare change in the pocket.
And Mr Sim should change his mindset ahead of Apple. Be like a handphone manufacturer because MP3 players costs much the same as handphone (bit cheaper?) and more importantly, people change hp every 3 to 6 months on new models out. Have different design for every new Zen player launched each time.
Hmm, then we will have 2nd-hand MP3 shops like hp in future?
-------------------------------------------------------------------
AUGUST 4, 2006
Technology
By Catherine Holahan
Have iPod, Will Travel
A partnership with Ford, GM, and Mazda may help Apple extend its lead over other MP3 makers and turn up the heat on satellite radio
And you thought the iPod was everywhere already. Now the digital music player is more likely to end up in the car revving next to yours?or your own.
On Aug. 3, Apple (AAPL) announced that America's largest car manufacturers, Ford (F) and General Motors (GM), as well as Japan's Mazda, will include iPod connections on most 2007 models. Apple already had similar arrangements with more than a dozen automakers, including Honda, Volkswagen, and Mercedes-Benz.
The newest deal means iPods could be integrated into stereo systems of more than 70% of the 2007 autos sold in the U.S., and it could help Apple extend its lead over rivals in the $4.5 billion market for digital music players. A lot of users listen to iPods on public transportation, but this arrangement means more will bring the player when they're behind the wheel, says American Technology Research analyst Shaw Wu. "The most important thing is it increases the ubiquity of the device," Wu says. "This is something a lot of consumers have wanted, and I think it gives them another place where users can enjoy their iPod experience and it increases the stickiness of the device."
IPOD ON BOARD. Apple, which has sold 58 million iPods, now has 75% of the U.S. portable player market. Samsung, Sony (SNE), Creative Technology (CREAF), and Toshiba largely split the remainder. Microsoft (MSFT) plans to join the MP3 fray close to yearend, but the software giant will have a bigger impact on the smaller outfits than on Apple, says Wu.