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Zune will need some time to catch up with iPod. Besides, it may not use the Zen patent. If Creative is making the Zune, it would make money. But now, it's Toshiba.
MSFT's coming Zune may worth more since it may be the true blue 'iPod Killer', Nostradamus? .... Maybe MSFT pays Creative upfront first before Zune's lanuch. :P
Apple controls 75% of the MP3 players market. Creative only managed to get US$100m from it. As for the other MP3 sellers, the most Creative can get is around US$20m.
Creative's current strength is the "Zen patent" .... which Apple paid off 100m to resolve the legal suits. After spending so much R&D on it, Mr Sim can use this technology to his advantage. ... How to? I dun know as Mr Sim should be able to figure it out since he's a technical man. Wonder how many MP3 players out there use this patent?
Actually, i got to sell it at $11.80 . As i hav cleared my position, my only problem is when to buy again!
The $100m handout by Apple to Creative is like a drop of water in the ocean. I believe 30% already has gone to the pockets of the lawyers.
The axiom "buy in anticipation and sell on news" apply unmistakenly to the rise in Creative's recent price. People who are stuck took the opportunity to unload. After a while, the price will go back to its dismal level again.
Creative not only must re-invent itself. They must look seriously into rebranding their MP3 player.
In my opinion, the name Zen has religious connotation and is not accepted by the young generation.That's why it is not popular. For the same price, one can buy a Creative MP3 player that is spec much superior to the ipod. In fact, it is Apple that is playing catch-up to Creative, technically. The ipod only win because of the hip name and the savvy marketing of its creator.
So long as nothing creative is coming out from Creative, the drop will continue .... more features and colors won't work anymore. Just change the design, Mr Sim. I used to be very vested until the super huge ads budget scared the pants off me late 2004.
still bleeding today... may go back to pre-$100 million price soon?
I admire Mr Sim cos he's a generous and honest businessman. But he's also a technical man - marketing is just not his cup of teeth. That's why Apple 'conned' Creative with the 100m pay-off to settle the legal suits.
Zen MP3 should be redesigned as its too fat. But whatever changes are to be made, MSFT's Zune out in a few months time will be the true 'iPod & Zen killer".
Poor Creative so many forum keep talking you down.. maybe many got killed by this during the internet bubble SIGH
Actually the problem from my view is their marketing and design team unlike steve who knows what the US consumers WANT,NEED,COLOR,TREND,LIKE,PRICE
Go get some one who is able to do all this...SIGH
Poor Creative so many forum keep talking you down.. maybe many got killed by this during the internet bubble SIGH
Actually the problem from my view is their marketing and design team unlike steve who knows what the US consumers WANT,NEED,COLOR,TREND,LIKE,PRICE
Go get some one who is able to do all this...SIGH
Looks like the huge gain last week couldn't hold water.
Below's coments extracted from 'thestreet.com' ....
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And the company agreed to pay Creative Technologies (CREAF - commentary - Cramer's Take) $100 million to settle a patent dispute, essentially -- if not technically -- admitting that it had illegitimately borrowed some of Creative's ideas in designing the iPod's interface.
But PR -- not to mention $100 million -- isn't everything.
When compared with the way other notable patent disputes have gone of late, Apple's settlement with Creative starts to look like one of the best ways to handle a bad situation: Faced with a serious threat to a core product, you get your lawyers on the phone with the other guy's lawyers, you throw some money at the problem, and you settle it -- and make it go away.
And you get bonus points if, like Apple, you can turn your potential courtroom opponent into a business partner and give yourself a chance to recoup some of your settlement costs.
"This is a smart move for Apple," says Scott Marrs, a patent attorney for Houston, Texas-based Beirne, Maynard & Parsons. "Someone really took a hard look at this -- and appropriately so -- and said, 'Let's focus on our future business.' "
agree! I think Apple was just playing smart for the long term when it paid Creative off.
Creative's problems are deeper than just the Apple issue. they really need to reinvent themselves.
Creative's problems are deeper than just the Apple issue. they really need to reinvent themselves.
Confirm Creative is the loser .... It has become a gate-keeper for Apple against MSFT unknowing!
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Apple Gets Creative
August 24, 2006 02:09 PM ET
It's been a lousy few weeks for Apple (Nasdaq: AAPL). Between an ongoing investigation into its stock options practices and heightened competition in the high-growth digital entertainment market, there's hasn't been much for investors to cheer. Till now, that is.
On Wednesday, Apple agreed to pay $100 million to settle its legal tussle with Creative Technology (Nasdaq: CREAF) over the iPod. In a statement, Apple CEO Steve Jobs said that the deal "resolves of our differences with Creative, including the five lawsuits currently pending between the companies, and removes the uncertainty and distraction of prolonged litigation."
At issue was a Creative patent for navigating, organizing, and accessing music through software user interfaces, according to a report in The Wall Street Journal. If that sounds scary, it should. Much of the appeal of the iPod comes from its unique design.
Financial details of the agreement weren't immediately clear, although the Journal reported that Apple would record the Creative license as an asset on its balance sheet and then amortize the cost over many years. As a result, the Mac maker expects no material impact to earnings.
But there's more to this deal than a cheap out to potentially expensive litigation. Creative will join Apple's "Made for iPod" program by certifying earphones, headphones, and other future products for the iconic music player. And that should lead to revenue for Apple. As late as October, News.com was reporting that Apple demands a royalty equal to 10% of the wholesale price of "Made for iPod" products.
What's more, Apple is allowed to recoup costs if others agree to license Creative's patent. Will there be other deals? It's a good bet Creative will try to secure some; the $100 million the firm is getting from Apple will juice per-share earnings by $0.85 in the current quarter.
Plus, there are plenty of targets, with the biggest and most obvious being Microsoft (Nasdaq: MSFT). Its planned Zune player is expected out before the holiday season. Creative could get a hold of a beta version of the device and, if there's evidence of a patent violation, file suit and petition for an injunction.
Apple would love nothing better, of course. But even if Mr. Softy and other i-wannabes avoid the courts, they're unlikely to avoid the extra time and expense of working around Creative's patent. That, too, is a win for the Mac maker. Well done, Steve.
The iPod accessories market is too crowded (about 70-80 different products available already) with wel-established players players (Sony, Nike, Belkin, JBL, Altec Lansing, Bose, Logitech, Sonic, Tivoli and Shure) already dominating the market. It also has to give Apple a cut (10-15%) of the selling price as well. This results in razor-thin margins to Creative.
Creative is the biggest loser after all .... The biggest winner is Apple!
The 100m compensation is chicken feet to Apple and it has worked well to its advantage - maybe without Creative knowing it.
With the legal suits settled, Apple will look even more attractive to investors as Creative has been 'paid-off'. Apple can now focus on new product launches without worries of being sued again. They know they have to position themselves fast to maintain or expand its MP3 market share before MSFT's Zune debut at year end.
On the other end, Creative has the 100m now, but it had already spent so much trying to be an 'iPod killer'. Hmmm, now the 100m compensation from Apple looks like chicken feet to Creative now?
Wah leow .... Creative down to 10.80 now! Scary for those who jumped in ysterday!
ok...since Apple unlikely to agree to re-occuring licensing may be Creative should hv like sign OEM agreement to sell Ipod made by creative instead? hee...merely making use of market brand of Ipod hor? hee...
Creative closed up 14.8% in Nasdaq last nite ....