Apple Took All The Chips, Creative Says

from the follow-the-logic dept

MP3 player manufacturer Creative says there's an industry-wide shortage of flash memory that will make it hard to deliver 1GB flash players. It's a shortage that's affecting everybody but Apple -- and Creative blames it on Apple's "special deal" with Samsung to buy up a large amount of its quarterly flash-memory production. It also sounds like Creative's CEO is blaming Apple for putting price pressure on the industry that a lot of companies can't handle. His response? Raise prices. Sounds like that should work, because if people favor a rival's product, raising the price of your own will certainly make it more attractive. Maybe the real problem is that a Creative MP3 player never made anybody king of the Internet.


Reader Comments (rss)

(Flattened / Threaded)

  1.  
    identicon
    Mimic, Oct 26th, 2005 @ 4:17pm

    No Subject Given

    Apparently you don't understand Price-Vs-Demand. Its the reason Spark sold themselves out of business and the reason you should refrain from posting material on how businesses should be run.

    In case you haven't noticed, Samsung is the industry for Flash Memory (price + quantity).

    But perhaps you are too concerned with the MP3 player debate to use your head before making obtuse comments about something you appear to have little comprehension about, business.

    (I'm sure your concerned with which MP3 player I buy, but I'm sure you'll also appreciate the fact that this post is not about brand names.)

     

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  2.  
    identicon
    jeremiah, Oct 26th, 2005 @ 4:26pm

    Creative Labs?

    I assume you're speaking of Creative Labs? I ask because you called them an "mp3 player manufacturer"....it seems clear they make a lot more than just mp3 players.
    Seems the Samsung+chip shortage meme goes back a way, too...like May 2004.

     

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  3.  
    identicon
    Anonymous Coward, Oct 26th, 2005 @ 4:59pm

    No Subject Given

    I use Creative's Zen Micro player because of the ease of use and low price point.

    It doesn't hold as much as the iPod for example but it doesn't force you into propritery software either.

    Maybe if their players are in the price range people will start to realise they make just as good, if not a better product than apple.

     

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  4.  
    identicon
    David, Oct 26th, 2005 @ 5:08pm

    Re: No Subject Given

    Apple doesn't force you into proprietary software any more than other players do if you want to purchase music online. Protected WMA files are every bit as proprietary as Apple's protected AACs.
    For your own ripped music I don't think it's so bad having to use a free organizational tool like iTunes when the alternative is using Windows Explorer or Mac Finder to copy files.

     

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  5.  
    icon
    Mike (profile), Oct 26th, 2005 @ 5:15pm

    Re: Creative Labs?

    Wait, just because they make other products, we can't call them an mp3 player manufacturer? Carlo wasn't defining them and saying that's all the made... But, since the story was about mp3 players, it seemed like an accurate description.

    By your definition, we can't call Honda an automaker, because they make a lot more than autos. We can't call Microsoft a software firm because they make a lot more than software.

    Creative makes mp3 players. The story was about their mp3 players. It seemed reasonable to call them an mp3 maker, even if they make other products.

    Please, Jeremiah... explain the rules. :)

     

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  6.  
    identicon
    Mimic, Oct 26th, 2005 @ 6:13pm

    Re: Re: Creative Labs?

    I believe the comment was inspired by the improper use of the companies name 'Creative' as apposed to 'Creative Labs', thus assuming people knowing the company by a bungled name and its mediocre products being MP3 devices (seeing as it their second biggest product).

    But since Apples biggest product is an MP3 player and Microsoft's biggest product is software AND Honda chiefly makes automobiles, you seem to have missed the point entirely. Please mike, be a little more thoughtful when replying.

    (Your posts usually show more wit. Truly, gaucherie is unbecoming of you.)

     

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  7.  
    identicon
    mimic, Oct 26th, 2005 @ 6:20pm

    Re: Re: Creative Labs?

    teh internet rox0rz !!!!!!!!!!! lol

     

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  8.  
    identicon
    image, Oct 26th, 2005 @ 6:36pm

    OMFGROTFLMFAOLOLZZZ!!!1

    r0x0rz mY 50x0rz!!!1

    iP0d 4 3v4!!!!!!11

     

    reply to this | link to this | view in thread ]

  9.  
    identicon
    John, Oct 26th, 2005 @ 6:39pm

    Re: Re: Creative Labs?

    The company is commonly known as Creative. Who the fuck cares if someone calls them Creative or Creative Labs? Do you really waste your time worrying about this crap?

    I can't figure out why people are complaining about this story. It seems like a good summary of the situation -- in typical smart, insightful Tech Dirt fashion.

    The comments around here have really gone down hill lately.

     

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  10.  
    identicon
    LittleW0lf, Oct 26th, 2005 @ 7:06pm

    Re: Re: Creative Labs?

    The comments around here have really gone down hill lately.

    Heh, John...

    The comments around here have been down hill for more than a year now...I used to comment all the time back when the folks living here would actually hold lively discussions (even when they were arguments, they were well written ones,) but for a year or so I had given up on commenting or even reading the comments to the stories because 9 out of 10 of them were trolls. (Dorpus and his brothern taught me to go to read-only mode.)

    Usually it is best to just ignore them and read Techdirt for Mike's insightful summaries. Of course now I should go back to read-only mode for another year...

     

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  11.  
    identicon
    jdragon, Oct 26th, 2005 @ 9:51pm

    Re: Re: Creative Labs?

    Creative is making up excuses for its mp3 player shortcoming in sales and marketing.

     

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  12.  
    identicon
    John, Oct 26th, 2005 @ 10:26pm

    Re: Re: Creative Labs?

    jdragon: isn't that exactly what the post is saying in the first place? I think Littlewolf is right that responding to comments here is useless. The original post was clearly mocking Creative's claims.

     

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  13.  
    identicon
    Steffest, Oct 26th, 2005 @ 11:14pm

    No Subject Given

    Maybe,
    but on the other hand: It's a common business practice when you have the monopoly of a market to squeeze you suppliers for low prices. Doing so, you make it impossible for other companies to compete at the same price.
    In many countries this is regarded as "unfair" or even "illegal" business practices. Antitrust laws are there for a reason, you know ...

     

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  14.  
    identicon
    Pat, Oct 27th, 2005 @ 1:09am

    Re: No Subject Given

    I don't think that logic holds in this case. If Samsung makes up almost all of the Flash market, they would be in a position to dictate prices to Apple, not the other way around. If Samsung doesn't have a monopoly, then even selling all their memory to Apple wouldn't affect Creative's ability to go elsewhere. It seems that there is just a big jump in demand, one that supply hasn't caught up with yet. Normally that would cause prices to raise. But Apple, smartly, agreed ahead of time to guarantee a large purchase. And large guaranteed purchases get a discount, no matter what you are buying. Apple took a big gamble and it looks like it will pay off.

     

    reply to this | link to this | view in thread ]


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