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Creative: Apple to blame for MP3 player memory shortage
Playlist ^ | 10/26/2005 | Martyn Williams

Posted on 10/26/2005 12:23:11 PM PDT by Panerai

An industry-wide shortage of a key flash memory chips will hit the availability of some models of MP3 player during the upcoming holiday shopping period, the head of Creative Technology Ltd.’s U.S. unit said Wednesday. He partly blames Apple for the shortfall, which he says will impact other MP3 makers.

“One of the key challenges we face in our MP3 business is an industry-wide shortage of 1GB flash memory,” said Craig McHugh, president of Creative Labs Inc., in a conference call with financial analysts. “Industry demand for high-capacity flash memory currently outstrips supply and this will impact availability of our 1GB flash MP3 players for the holiday quarter. The shortage of flash memory, according to industry analyst speculation, is primarily a result of a special deal that Apple has secured from a key supplier for the holiday season.”

Apple is widely reported to have signed a deal with Samsung Electronics Co. Ltd. to secure a supply of flash memory for its music players, particularly the recently-launched iPod nano, which replaced the hard-disk drive-based iPod mini in the company’s music player line-up.

The deal struck by Apple is putting pressure on the entire MP3 player industry, said Sim Wong Hoo, chairman and CEO of Singapore-based Creative. He did not refer to Samsung by name.

“The MP3 market is now consolidating, but there is a shortage [of flash memory] because of the special deal we talked about,” said Hoo.

The consolidation has been at the low end, he said, with several Chinese MP3 player makers leaving the market because of the pressure Apple is putting on the industry, according to Hoo.

(Excerpt) Read more at playlistmag.com ...


TOPICS:
KEYWORDS: apple; creative; flashmemory; ipod; mp3; videoipod

1 posted on 10/26/2005 12:23:12 PM PDT by Panerai
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To: Panerai

Bushel's fault.


2 posted on 10/26/2005 12:27:59 PM PDT by agooga (Got Boomstick?)
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To: Panerai
// The solution is simple:

While (DEMAND > SUPPLY) {
    SUPPLY++;
}

3 posted on 10/26/2005 12:28:21 PM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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To: Panerai

I hope creative goes out of business with all their sniveling and whining.


4 posted on 10/26/2005 12:43:23 PM PDT by x5452
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To: Panerai

"Hoo" is their chairman.

I dunno, who?

I thought you knew!


5 posted on 10/26/2005 12:49:30 PM PDT by Pessimist
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To: Panerai
If Creative wants the higher capacity memory, they should bid more than Apple.. simple as that.. playing the it's not fair game sounds like 2 year olds on a school yard.
6 posted on 10/26/2005 1:00:46 PM PDT by mnehring (Rove/Libby 2008)
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To: Panerai

The sound you're hearing is the world's smallest violin playing their sob song, compressed to 128kbps MP3 of course.


7 posted on 10/26/2005 1:15:16 PM PDT by mcg1969
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To: Pessimist
"Hoo" is their chairman.

George: Condi! Nice to see you. What's happening? 

Condi: Sir, I have the report here about the new leader of China. 

George: Great. Lay it on me. 

Condi: Hu is the new leader of China. 

George: That's what I want to know. 

Condi: That's what I'm telling you. 

George: That's what I'm asking you. Who is the new leader of China? 

Condi: Yes. 

George: I mean the fellow's name. 

Condi: Hu. 

George: The guy in China. 

Condi: Hu. 

George: The new leader of China. 

Condi: Hu. 

George: The main man in China! 

Condi: Hu is leading China. 

George: Now whaddya' asking me for? 

Condi: I'm telling you, Hu is leading China. 

George: Well, I'm asking you. Who is leading China? 

Condi: That's the man's name. 

George: That's who's name? 

Condi: Yes. 

George: Will you, or will you not, tell me the name of the new leader of China? 

Condi: Yes, sir. 

George: Yassir? Yassir Arafat is in China? I thought he's dead in the Middle East. 

Condi: That's correct. 

George: Then who is in China? 

Condi: Yes, sir. 

George: Yassir is in China? 

Condi: No, sir. 

George: Then who is? 

Condi: Yes, sir. 

George: Yassir? 

Condi: No, sir. 

George: Look Condi. I need to know the name of the new leader of China. Get me the Secretary General of the U.N. on the phone. 

Condi: Kofi? 

George: No, thanks. 

Condi: You want Kofi? 

George: No. 

Condi: You don't want Kofi. 

George: No. But now that you mention it, I could use a glass of milk. And then get me the U.N. 

Condi: Yes, sir. 

George: Not Yassir! The guy at the U.N. 

Condi: Kofi? 

George: Milk! Will you please make the call? 

Condi: And call who? 

George: Who is the guy at the U.N? 

Condi: Hu is the guy in China. 

George: Will you stay out of China?! 

Condi: Yes, sir. 

George: And stay out of the Middle East! Just get me the guy at the U.N. 

Condi: Kofi. 

George: All right! With cream and two sugars. Now get on the phone 



8 posted on 10/26/2005 1:53:21 PM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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To: Izzy Dunne

Tears all over keyboard!


9 posted on 10/26/2005 1:57:53 PM PDT by Revolting cat! ("In the end, nothing explains anything.")
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To: Izzy Dunne

If he calls Kofi and Hu - Hu's on first?


10 posted on 10/26/2005 3:05:41 PM PDT by Fatuncle (Iffen I wuzn't iggnerent, I woodn't need to be eddiecated.)
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To: x5452
i assure you they won't -- they build very nice players, and when supply catches up w/ demand, apple will be faced with *MUCH* lower priced competition, not just somewhat lower priced competition.

the loser will be apple, the winner, well, we will be the winner because we are free to choose which product we prefer (whether apple or creative or sony or jian liang) without the effects of an artificially induced shortage.

11 posted on 10/26/2005 3:13:43 PM PDT by chilepepper (The map is not the territory -- Alfred Korzybski)
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To: chilepepper

It has nothing to do with price. If price was the only concern GPX would have more cash per quarter than Sony. It's about quality, and it's about Fashion, and it's about ease of use.

You can't use creative products with the most popular music store.

Frankly they play second fiddle for MP3 instead prefering the hard to use lower quality less songs available WMA format.

There is no low price that makes garbage gold; especially when the only boon to creatives garbage is the flash memory Apple has bought out from under them.

Whining is a socialist strategy. Winning a capitalist one.


12 posted on 10/26/2005 10:33:33 PM PDT by x5452
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To: x5452
what makes you think i want to use "...the most popular music store..."? my zen doesn't force me to drink the iTunes koolaid like the iPod does...and it connects up beautifully to my Linux. quality wise, it is superb through my Bose speakers...
13 posted on 10/27/2005 6:10:42 AM PDT by chilepepper (The map is not the territory -- Alfred Korzybski)
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To: Panerai

My Apple stock closed at $57 yesterday...


14 posted on 10/27/2005 6:11:43 AM PDT by pageonetoo (You'll spot their posts soon enough!)
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To: chilepepper

Ok let's see do I go to Music store A with thousands of albums and artists or Music store B with a lossy media format and hundreds of artists.

You use the popular music store because that is WHERE MUSIC IS AVAILABLE, and frankly on top of that Apple has tons free material from bands and most music is available there weeks before it hits actual cd shops.

People usng LINUX don't need a popular music store because they intend to steal music anyway.


15 posted on 10/27/2005 7:00:22 AM PDT by x5452
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To: pageonetoo
My Apple stock closed at $57 yesterday...

You're not gonna believe this, but so did mine.

16 posted on 10/27/2005 7:04:32 AM PDT by dighton
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To: dighton

Mine too. Ain't capitalism grand!!!


17 posted on 10/27/2005 7:07:20 AM PDT by SlowBoat407 (The best stuff happens just before the thread snaps.)
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To: dighton
My Apple stock closed at $57 yesterday... -p

You're not gonna believe this, but so did mine. -d

I'm a Mac user since 1984. I bought my first iPod, in the third generation. I waited too long...

18 posted on 10/27/2005 7:07:20 AM PDT by pageonetoo (You'll spot their posts soon enough!)
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To: SlowBoat407
I bought at 13 3/8 just a little while before they had that split. I had sold XRX, at the right time.

I love capitalism!

19 posted on 10/27/2005 7:13:23 AM PDT by pageonetoo (You'll spot their posts soon enough!)
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To: x5452
why should i steal music when i already have over 700 CD's ? there isn't any music i don't already own that i would want to steal. i use an MP3 player for convenience now, i used to just load my ripped CD's into my iPAQ.

in my old age i've concluded that all Microsoft and Apple users are just stupid sheep... your comments have done nothing to dispell that notion.

20 posted on 10/27/2005 7:20:28 AM PDT by chilepepper (The map is not the territory -- Alfred Korzybski)
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To: pageonetoo

First Mac here was a Lisa, running Mac emulation SW -- the name escapes me. IIRC, the 10 or 20 MB (!) external HD alone cost a coupla grand.


21 posted on 10/27/2005 7:20:59 AM PDT by dighton
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To: dighton
Gee, my first time was a fat Mac, with a 5 meg Hyperdrive INTERNAL (GCC). I bought an ImageWriter, (and replaced it as soon as someone made a driver for the HP DeskJet), and a MacDraft CAD program, and sat at my desk for a half hour setting it up.

Then, I spent a few minutes playing, and printed a rough 1/4" scale floor plan. I was hooked. My friends were using a c>. I was using a mouse...

Currently using a G5 desktop (running Final Cut Pro, among other goodies. Think iMovie on steroids), with the 23" cinema display, but still using HP (OfficeJet). I also use a G4 17" PowerBook, a G4 desktop, my wife won't get rid of her Wallstreet G3, and 16 yr old has iMac DV. Airport Extreme runs them onto a cable modem, and print share.

I remember my (then) four year old daughter sitting at a computer. I had purchased an innocuous little program called StickeyBears. She learned to use it instantly, and fought me for time on the Mac.

She was reading, and doing math when she went to kindergarten...

Windoze guys are welcome to their PC's. I think I'll make another movie of my grandkids!

22 posted on 10/27/2005 7:38:40 AM PDT by pageonetoo (You'll spot their posts soon enough!)
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To: Izzy Dunne

Did you come up with that?

If so, I'm impressed! That old A&C Who's on First routine is one of the all-time classics of comedy.


23 posted on 10/27/2005 7:44:07 AM PDT by webstersII
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To: chilepepper

Who's a stupid sheep the guy paying for a CD (quite possibly rip-protected) for 17$ without free bonuses, then taking time to load the CD, attempt to rip it, and then storing it somewhere, or the guy getting it for 10$ with free videos and bonuses, who can store it in one central place and also take it on his iPod or broadcast it over WiFi to anywhere in his home?


24 posted on 10/27/2005 7:48:01 AM PDT by x5452
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To: webstersII
Did you come up with that?

No, I cannot claim credit. Alas, I do not know where I got it, though. It's on a Sticky note.

25 posted on 10/27/2005 8:12:14 AM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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To: pageonetoo
She was reading, and doing math when she went to kindergarten...

Great story up to that part.

26 posted on 10/27/2005 8:27:26 AM PDT by Aquinasfan (Isaiah 22:22, Rev 3:7, Mat 16:19)
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To: agooga

BOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!


27 posted on 10/27/2005 8:29:19 AM PDT by MortMan (Eschew Obfuscation)
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To: x5452
only a stupid sheep pays $17 for a CD. I buy my CD's from BMG, and averages $9 a piece, if that... i own the music i want to own. all the modern stuff is written for stupid sheep who must always be listening to *something* to drown out the unbearable silence within their hollow minds...
28 posted on 10/27/2005 9:08:00 AM PDT by chilepepper (The map is not the territory -- Alfred Korzybski)
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To: Aquinasfan
Great story up to that part.

?

29 posted on 10/27/2005 9:20:36 AM PDT by pageonetoo (You'll spot their posts soon enough!)
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To: chilepepper

So basically if a consumer product isn't aimed at your tiny niche taste you feel it's prone to fail in the market. Your original synopsis was the iPod/iTunes is bad for the average person, it's actually perfect for the average person, and when creative goes out of business it will be because only niche users like yourself care to use their product.


30 posted on 10/27/2005 10:21:45 AM PDT by x5452
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To: MortMan

I am SOOO sorry about that!!!


31 posted on 10/27/2005 10:32:45 AM PDT by agooga (Got Boomstick?)
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To: agooga

No you're not. It was funny, but needed to be booed!


32 posted on 10/27/2005 10:39:01 AM PDT by MortMan (Eschew Obfuscation)
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To: x5452

you should eat more fish... maybe you'll become more intelligent.


33 posted on 10/27/2005 1:55:31 PM PDT by chilepepper (The map is not the territory -- Alfred Korzybski)
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To: chilepepper
You should read some economics books and study consumer trends. Then maybe you'll understand why when Creative closes shop.
34 posted on 10/27/2005 1:56:50 PM PDT by x5452
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To: Panerai

Creative is better than Apple anyway.


35 posted on 10/27/2005 2:02:16 PM PDT by Sir Gawain
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To: pageonetoo
Great story up to that part. ?

School changes kids for the worse.

36 posted on 10/28/2005 4:31:04 AM PDT by Aquinasfan (Isaiah 22:22, Rev 3:7, Mat 16:19)
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To: Izzy Dunne

LOL. Well Done.


37 posted on 10/28/2005 4:33:41 AM PDT by evolved_rage
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To: Izzy Dunne

Why didn't you include 'COST++' just before your loop...


38 posted on 10/28/2005 4:57:31 AM PDT by LearnsFromMistakes (We know the right things to do, why don't we just do them?)
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To: chilepepper
... they build very nice players...

This would be a first that a Creative product was ever "very nice," then. I can't believe this company has a monopoly on the PC sound card market.
39 posted on 10/29/2005 10:28:56 AM PDT by Terpfen (Libby should hire Phoenix Wright.)
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