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.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Apple Took All The Chips, Creative Says”

Subscribe: RSS Leave a comment
Mimic says:

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.)

Mike (profile) says:

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. 🙂

Mimic says:

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.)

John says:

Re: 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.

LittleW0lf says:

Re: Re: Re:2 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…

Anonymous Coward says:

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.

David says:

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.

Steffest says:

No Subject Given

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 …

Pat says:

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.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...