industry
04/05/2006, 1:50pm, EDT
Wednesday, April 5th
Creative warns of operating loss
Creative Technology today warned of an operating loss in its fiscal third quarter that ended in March, saying lower margins and inventory write-downs were responsible. The company's Zen and Nomad media players are in direct competition with Apple's iPod line, and while Creative's players work with Windows Media Player, the devices are incompatible with the iTunes Music Store. Creative warned in February that it would realize one-off charges of approximately $9 million due to graphic unit restructuring, and now the company expects an operating loss of $55-65 million on revenues of $220-230 million, according to Reuters. "The operating loss is primarily attributable to a drop in flash memory prices in the quarter," Creative said. "The sharp drop had a significant negative impact on sales in March and resulted in lower revenues and gross margins and inventory write-downs in the period."
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Today I saw a new LG Music Cell Phone (550c?) that really looks a bit like a nano ... If Apple doesn't get into this market, the Cell phones will eventually drown them out, even though I realize it's the entire package that people need (iTunes/Hardware, etc.)
With Apple in 'some' ways getting into the Windows world with the Boot Camp stuff, the stock market is raising, but in some ways it's a defeat as it's OK to run Windows on a Mac ... does Apple become a hardware company? Do they change their whole business and sub-license MacOSX.
I cerntainly hope Leopard has some tricks up its sleeve as well as some great new hardware (tablet, etc.) comes out this year.